The Paycrest protocol ecosystem consists of four main participant types, each with specific roles and responsibilities. Understanding these participants is crucial for building on the protocol.

Sender

A KYC-verified entity that initiates either a fiat-to-stablecoin or stablecoin-to-fiat transaction.

Characteristics

  • KYC Required: Must complete identity verification (KYC/KYB)
  • API Access: Uses the Sender API to create orders or can interact directly with the Gateway contract
  • Fee Structure: Zero transaction fees (all sender fees are paid by providers)
  • Flexibility: Can be smart contracts, dApps, or traditional applications

Responsibilities

  • Order Creation: Specify amount, token, recipient, and rate
  • Recipient Information: Provide accurate bank account or wallet details
  • Compliance: Maintain KYC status and regulatory compliance
  • Monitoring: Track order status and handle webhooks

Use Cases

  • Remittance Services: Send money to family abroad
  • Business Payments: Pay suppliers in different currencies
  • DeFi Applications: Bridge between crypto and traditional finance
  • E-commerce: Accept crypto payments and settle in fiat

Recipient

The beneficiary of the transaction who receives funds without interacting with the protocol directly.

Characteristics

  • Passive Role: No direct protocol interaction required
  • Multiple Options: Can receive fiat or stablecoins
  • Flexible Delivery: Bank accounts, mobile wallets, or crypto wallets
  • Zero Complexity: Doesn’t need to understand blockchain technology

Delivery Methods

  • Bank Transfer: Direct deposit to local bank account
  • Mobile: Transfer to mobile wallet (M-Pesa, etc.) or mobile payment systems (UPI, PIX)
  • Crypto Wallet: Receive stablecoins in specified wallet

Note: Cash pickup is not supported. All off-ramps are to fiat accounts or wallets.

Example Scenarios

  • Family Remittance: Receive USD in local bank account
  • Freelancer Payment: Get paid in local currency for crypto work
  • Business Settlement: Receive supplier payments in preferred currency
  • Investment Returns: Convert crypto gains to fiat

Provider

A KYC-verified participant that supplies fiat liquidity in exchange for stablecoins or provides stablecoins in exchange for fiat.

Characteristics

  • Liquidity Supply: Provides fiat or crypto liquidity
  • KYC/KYB Required: Business verification for compliance
  • PSP Integration: Connects to Payment Service Providers
  • Competitive Rates: Sets rates based on market conditions

Responsibilities

  • Order Fulfillment: Execute payments to recipients
  • Rate Management: Set competitive rates for currency pairs
  • Compliance: Maintain regulatory compliance and reporting
  • Infrastructure: Operate reliable payment infrastructure

Revenue Model

  • Bid-Ask Spreads: Profit from currency exchange spreads
  • Volume Incentives: Earn bonuses for high transaction volume
  • Quality Bonuses: Rewards for reliable fulfillment
  • Geographic Premiums: Higher rates for underserved markets

Provider Types

Traditional PSPs

  • Banks and financial institutions
  • Money transfer operators
  • Payment processors
  • Mobile payment providers

Crypto-Native Providers

  • Crypto exchanges
  • DeFi protocols
  • OTC desks
  • Crypto payment processors

Aggregator

A KYC-verified entity that coordinates the entire payment process and ensures protocol efficiency.

Characteristics

  • Order Matching: Matches orders with suitable providers
  • Quality Assurance: Ensures reliable order fulfillment
  • Compliance Oversight: Manages KYC and regulatory compliance
  • Infrastructure: Operates high-availability nodes

Responsibilities

  • Order Indexing: Monitor blockchain for new orders
  • Provider Management: Maintain provider registry and ratings
  • Order Assignment: Match orders with optimal providers
  • Settlement Coordination: Coordinate multi-provider settlements
  • Compliance Verification: Verify KYC and regulatory compliance
  • Dispute Resolution: If an order is not fulfilled, it is automatically refunded. The aggregator does not handle disputes directly. If an order is stuck, communication between senders and providers may occur via a decentralized messaging protocol (e.g., XMTP).

Aggregator Functions

1

Order Detection

Monitor Gateway contract for new payment orders

2

Provider Matching

Find suitable providers based on rates, limits, and availability

3

Order Assignment

Assign orders to providers with optimal conditions

4

Fulfillment Monitoring

Track order fulfillment and validate completion

5

Settlement Coordination

Coordinate onchain settlement and fee distribution

Aggregator Types

  • Protocol Aggregators: Official Paycrest aggregator nodes
  • Third-Party Aggregators: Independent aggregator services
  • Hybrid Aggregators: Providers that also run aggregator nodes

Participant Relationships

Sender → Aggregator

  • Order Submission: Senders submit orders through API
  • Status Updates: Receive real-time order status updates
  • Webhook Notifications: Get notified of order lifecycle events

Aggregator → Provider

  • Order Assignment: Aggregators assign orders to providers
  • Rate Management: Providers set competitive rates
  • Fulfillment Coordination: Coordinate payment execution

Provider → Recipient

  • Payment Execution: Providers execute payments to recipients
  • Settlement Confirmation: Confirm successful payment delivery
  • Compliance Reporting: Report transactions for regulatory compliance

Key Benefits

For Senders

  • Zero transaction fees
  • Global reach with local delivery
  • Real-time status tracking
  • Automated compliance

For Recipients

  • No technical knowledge required
  • Multiple delivery options
  • Fast settlement times
  • Competitive exchange rates

For Providers

  • Access to global liquidity
  • Automated order matching
  • Transparent fee structure
  • Quality-based incentives

For Aggregators

  • Network effect benefits
  • Quality assurance control
  • Compliance management
  • Infrastructure optimization

The Paycrest protocol ecosystem consists of four main participant types, each with specific roles and responsibilities. Understanding these participants is crucial for building on the protocol.

Sender

A KYC-verified entity that initiates either a fiat-to-stablecoin or stablecoin-to-fiat transaction.

Characteristics

  • KYC Required: Must complete identity verification (KYC/KYB)
  • API Access: Uses the Sender API to create orders or can interact directly with the Gateway contract
  • Fee Structure: Zero transaction fees (all sender fees are paid by providers)
  • Flexibility: Can be smart contracts, dApps, or traditional applications

Responsibilities

  • Order Creation: Specify amount, token, recipient, and rate
  • Recipient Information: Provide accurate bank account or wallet details
  • Compliance: Maintain KYC status and regulatory compliance
  • Monitoring: Track order status and handle webhooks

Use Cases

  • Remittance Services: Send money to family abroad
  • Business Payments: Pay suppliers in different currencies
  • DeFi Applications: Bridge between crypto and traditional finance
  • E-commerce: Accept crypto payments and settle in fiat

Recipient

The beneficiary of the transaction who receives funds without interacting with the protocol directly.

Characteristics

  • Passive Role: No direct protocol interaction required
  • Multiple Options: Can receive fiat or stablecoins
  • Flexible Delivery: Bank accounts, mobile wallets, or crypto wallets
  • Zero Complexity: Doesn’t need to understand blockchain technology

Delivery Methods

  • Bank Transfer: Direct deposit to local bank account
  • Mobile: Transfer to mobile wallet (M-Pesa, etc.) or mobile payment systems (UPI, PIX)
  • Crypto Wallet: Receive stablecoins in specified wallet

Note: Cash pickup is not supported. All off-ramps are to fiat accounts or wallets.

Example Scenarios

  • Family Remittance: Receive USD in local bank account
  • Freelancer Payment: Get paid in local currency for crypto work
  • Business Settlement: Receive supplier payments in preferred currency
  • Investment Returns: Convert crypto gains to fiat

Provider

A KYC-verified participant that supplies fiat liquidity in exchange for stablecoins or provides stablecoins in exchange for fiat.

Characteristics

  • Liquidity Supply: Provides fiat or crypto liquidity
  • KYC/KYB Required: Business verification for compliance
  • PSP Integration: Connects to Payment Service Providers
  • Competitive Rates: Sets rates based on market conditions

Responsibilities

  • Order Fulfillment: Execute payments to recipients
  • Rate Management: Set competitive rates for currency pairs
  • Compliance: Maintain regulatory compliance and reporting
  • Infrastructure: Operate reliable payment infrastructure

Revenue Model

  • Bid-Ask Spreads: Profit from currency exchange spreads
  • Volume Incentives: Earn bonuses for high transaction volume
  • Quality Bonuses: Rewards for reliable fulfillment
  • Geographic Premiums: Higher rates for underserved markets

Provider Types

Traditional PSPs

  • Banks and financial institutions
  • Money transfer operators
  • Payment processors
  • Mobile payment providers

Crypto-Native Providers

  • Crypto exchanges
  • DeFi protocols
  • OTC desks
  • Crypto payment processors

Aggregator

A KYC-verified entity that coordinates the entire payment process and ensures protocol efficiency.

Characteristics

  • Order Matching: Matches orders with suitable providers
  • Quality Assurance: Ensures reliable order fulfillment
  • Compliance Oversight: Manages KYC and regulatory compliance
  • Infrastructure: Operates high-availability nodes

Responsibilities

  • Order Indexing: Monitor blockchain for new orders
  • Provider Management: Maintain provider registry and ratings
  • Order Assignment: Match orders with optimal providers
  • Settlement Coordination: Coordinate multi-provider settlements
  • Compliance Verification: Verify KYC and regulatory compliance
  • Dispute Resolution: If an order is not fulfilled, it is automatically refunded. The aggregator does not handle disputes directly. If an order is stuck, communication between senders and providers may occur via a decentralized messaging protocol (e.g., XMTP).

Aggregator Functions

1

Order Detection

Monitor Gateway contract for new payment orders

2

Provider Matching

Find suitable providers based on rates, limits, and availability

3

Order Assignment

Assign orders to providers with optimal conditions

4

Fulfillment Monitoring

Track order fulfillment and validate completion

5

Settlement Coordination

Coordinate onchain settlement and fee distribution

Aggregator Types

  • Protocol Aggregators: Official Paycrest aggregator nodes
  • Third-Party Aggregators: Independent aggregator services
  • Hybrid Aggregators: Providers that also run aggregator nodes

Participant Relationships

Sender → Aggregator

  • Order Submission: Senders submit orders through API
  • Status Updates: Receive real-time order status updates
  • Webhook Notifications: Get notified of order lifecycle events

Aggregator → Provider

  • Order Assignment: Aggregators assign orders to providers
  • Rate Management: Providers set competitive rates
  • Fulfillment Coordination: Coordinate payment execution

Provider → Recipient

  • Payment Execution: Providers execute payments to recipients
  • Settlement Confirmation: Confirm successful payment delivery
  • Compliance Reporting: Report transactions for regulatory compliance

Key Benefits

For Senders

  • Zero transaction fees
  • Global reach with local delivery
  • Real-time status tracking
  • Automated compliance

For Recipients

  • No technical knowledge required
  • Multiple delivery options
  • Fast settlement times
  • Competitive exchange rates

For Providers

  • Access to global liquidity
  • Automated order matching
  • Transparent fee structure
  • Quality-based incentives

For Aggregators

  • Network effect benefits
  • Quality assurance control
  • Compliance management
  • Infrastructure optimization