VISA explores a new blockchain solution to enable recurring payments

VISA explores a new blockchain solution to enable recurring payments in wallets

When it comes to protecting information and making transactions faster, Blockchain technology is probably one of the most significant advances we’ve had in recent decades. Many companies have implemented blockchain solutions to improve existing processes, but one industry in particular has seen the greatest benefits from applying this relatively new technology. The financial sector has seen significant benefits from applying blockchain technology to improve the speed and security of transactions.

VISA is the latest company to announce the development of new financial applications that take advantage of the uses of blockchain technology. According to one blog post Posted on the Visa website, the financial services company is exploring new ways to innovate through blockchain technology.

A team of VISA researchers and engineers is studying the security, scalability, interoperability, and privacy of different blockchains and protocols to propose possible use cases for the company. This initiative is part of the company’s vision to innovate in the Web3 infrastructure layers and blockchain protocols.

Specifically, VISA is looking into the possibility of replicating and even improving the recurring payment setup we use to pay local utility or subscription providers on the blockchain through a distributed and programmable way. The company detailed its process for writing a smart contract application for a self-custody wallet, which the issuer and associated private key could control exclusively. Through this app, users can set up a programmable payment instruction that could automatically send funds from one self-custodial wallet account to another at recurring intervals without requiring user input each time.

The proposed solution is Account Abstraction, which aims to make user accounts on Ethereum work more like smart contracts by allowing users to have programmable features built into their wallets. This could help bring a familiar payment experience to the blockchain ecosystem.

Although blockchain technology is still in its early stages, many companies are investing in research and development of new use case applications to determine how they may affect the way we transact and move money today and in the future. VISA continues to invest in products in this area to help this technology and other concepts evolve, including common consensus mechanisms, privacy, scaling solutions, and other possible use cases of blockchain to create a bridge between the crypto ecosystem and the existing global network, most users and merchants know today.

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