diff --git a/bindings/core/src/method/wallet.rs b/bindings/core/src/method/wallet.rs
index ac153be111..517555dfe8 100644
--- a/bindings/core/src/method/wallet.rs
+++ b/bindings/core/src/method/wallet.rs
@@ -198,7 +198,7 @@ pub enum WalletMethod {
     PrepareImplicitAccountTransition {
         output_id: OutputId,
         #[serde(default)]
-        public_key: Option<PublicKey>,
+        public_key: Option<String>,
         #[serde(default)]
         bip_path: Option<Bip44>,
     },
diff --git a/bindings/core/src/method_handler/wallet.rs b/bindings/core/src/method_handler/wallet.rs
index 41196e98bb..fd583f6725 100644
--- a/bindings/core/src/method_handler/wallet.rs
+++ b/bindings/core/src/method_handler/wallet.rs
@@ -3,6 +3,7 @@
 
 use std::time::Duration;
 
+use crypto::signatures::ed25519::PublicKey;
 use iota_sdk::{
     client::api::{
         PreparedTransactionData, PreparedTransactionDataDto, SignedTransactionData, SignedTransactionDataDto,
@@ -215,9 +216,11 @@ pub(crate) async fn call_wallet_method_internal(wallet: &Wallet, method: WalletM
             public_key,
             bip_path,
         } => {
-            let data = if public_key.is_some() {
+            let data = if let Some(public_key_str) = public_key {
+                let public_key = PublicKey::try_from_bytes(prefix_hex::decode(public_key_str)?)
+                    .map_err(iota_sdk::wallet::Error::other)?;
                 wallet
-                    .prepare_implicit_account_transition(&output_id, public_key)
+                    .prepare_implicit_account_transition(&output_id, Some(public_key))
                     .await?
             } else {
                 wallet.prepare_implicit_account_transition(&output_id, bip_path).await?
diff --git a/sdk/src/wallet/error.rs b/sdk/src/wallet/error.rs
index 3e5eea5a01..a490e5a232 100644
--- a/sdk/src/wallet/error.rs
+++ b/sdk/src/wallet/error.rs
@@ -129,6 +129,12 @@ pub enum Error {
     ImplicitAccountNotFound,
 }
 
+impl Error {
+    pub fn other<E: 'static + std::error::Error + Send + Sync>(err: E) -> Self {
+        Self::Other(Box::new(err) as _)
+    }
+}
+
 // Serialize type with Display error
 impl Serialize for Error {
     fn serialize<S>(&self, serializer: S) -> Result<S::Ok, S::Error>
diff --git a/sdk/src/wallet/operations/transaction/account.rs b/sdk/src/wallet/operations/transaction/account.rs
index dd926a6b33..5e0138dc42 100644
--- a/sdk/src/wallet/operations/transaction/account.rs
+++ b/sdk/src/wallet/operations/transaction/account.rs
@@ -66,7 +66,7 @@ where
 
         let public_key = match key_source {
             BlockIssuerKeySource::Key(public_key) => public_key,
-            BlockIssuerKeySource::Path(bip_path) => {
+            BlockIssuerKeySource::Bip44Path(bip_path) => {
                 self.secret_manager
                     .read()
                     .await
@@ -107,5 +107,5 @@ where
 #[derive(From)]
 pub enum BlockIssuerKeySource {
     Key(PublicKey),
-    Path(Bip44),
+    Bip44Path(Bip44),
 }