- It made the news that Visa wants to use credit cards to make payments. Apparently, Visa discovered the issues crypto users had to face and decided to help.
- The new service will allow crypto traders and investors to use their Visa credit cards to make payments.
One of the things that many traders and investors see as a problem when making transactions is gas fees. Especially on the Ethereum network, paying transaction fees can be very stressful. Furthermore, if you are doing something like swaps or participating in an airdrop, you must consider both the standard and transaction fees. Visa discovered this problem and is trying to solve it by introducing a new form of service where you can pay gas fees with a credit card.
What Are Crypto Gas Fees?
Crypto gas fees are the amount of cryptocurrencies one has to pay when sending cryptocurrencies from one wallet to another. Gas fees are also known as transaction fees. Apparently, there’s no definite rule regarding how crypto gas fees are calculated.
Instead, some of the insights one needs to know is that the transaction fees depend on the amount of cryptocurrencies you are sending. Furthermore, how busy the blockchain is will determine if you are paying more transaction fees or not. For instance, if the blockchain is busy with many transactions, you are more likely to pay high transaction fees. But if they’re fewer transactions, you might pay less fees.
What is the New Visa Crypto Gas Fee Payment?
Visa wants to bail out the crypto industry by providing a way through which they can pay transaction fees using credit cards. Apparently, this new development brings a lot of promise to the crypto industry.
Visa’s proposed service uses Ethereum’s ERC-4337 account abstraction standard and a feature known as the “paymaster” smart contract to make the payment. With this paymaster, users can connect to a web service that will help them make these payments. Moreover, this payment method is quite simple and reduces fees.
How to Pay Gas Fees With Your Visa Credit Card
Apparently, paying your transaction fees with a Visa credit card is quite straightforward and seamless.
- The first thing to do is to initiate a transaction. This can be sending money from one wallet to another or swapping. Nevertheless, initiating a transaction is the first step.
- Once you initiate the transaction, the next thing is to send the transaction details to the paymaster web service. The web service will calculate the amount you pay for the transaction fee and take it from your connected card. Note that it is able to do this via Visa’s Cybersource system.
- Furthermore, the web service will send back a digital signature. It is approved and validated by Ethereum to make payments.
What Does Ethereum Stand to Gain?
- According to Visa, reducing friction in Ethereum blockchain activities is one of the most significant benefits of the new technology. In other words, user experience is more likely to increase with the introduction of this new service.
- Furthermore, using Ethereum-based solutions such as dApps will become more user-friendly. This is because many people are familiar with making payments with a credit card. Ultimately, users need to give their verdict on the new service first.
Conclusion
Visa surprised the crypto industry with the launch of its new service. Apparently, this new service will allow crypto users to pay their transaction fees using credit cards. According to the payment platform, their new service will make users pay lesser fees and make payments faster.
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Featured image from Pixabay
