How account abstraction is expected to redefine payment systems

Currently, payment gateways are all about prioritising the ‘Safety of users’, be it digital payments to Web3 wallets. Account abstraction which allows developers to use different authentication schemes is expected to bring a major change in the concept of digital payment gateways. “It will enhance the safety and security of self-custodial wallet products by eliminating the need for users to rely on their private keys and enabling greater programmability in wallets,” Dhruvil Shah, SVP- Technology, Liminal, told FE Blockchain. It is believed that the implementation of account abstraction in digital payment gateways can provide users with a seamless transaction experience by abstracting the account details and using temporary tokens.

The digital payment market is expected to reach $4.8 billion by 2025, as per Kyros Ventures, an investment firm.