Visa researchers have investigated how to enable automatic recurring payments for self-custodial crypto wallets.
According to Finextra, in a new paper, the researchers investigated how to bring the commonplace automatic recurring payment option to the world of crypto and blockchain.
The paper claims this ‘is not a trivial task on a blockchain like Ethereum’ adding that for self-custodial wallets where the user has sole control over the wallet and private keys, automated programmable payments that can pull payments automatically from a user’s account at recurring intervals requires engineering work.
The answer for Visa is a smart contract application that allows a user to set up a programmable payment instruction that can push funds automatically from one wallet account to another at recurring intervals with requiring the user’s active participation every time.
This relies on a concept known as account abstraction, which makes user accounts on Ethereum function more like smart contracts by allowing a user to have programmable features embedded into their wallets.
The Visa team demonstrates a potential application of AA, which is a new type of account contract that can delegate the ability to initiate a payment by a user account to a pre-approved autopayment smart contract, mimicking the process you use today to set up a recurring card payment.
Visa head, CBDC and Protocols, Catherine Gu said, “To help our clients and partners innovate, we need to immerse ourselves in technologies that can bring real value to the payments ecosystem.”
Visa recently reveavled it will team with Plan A to offer its Sustainability platform as a part of its FinTech Partner Connect programme to Visa’s issuer network.
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