Payment workflows
The easiest way to think about a programmable payment intents, is to think of payments as workflows with business logic. Paygrid is workflow-agnostic yet context-aware, designed to orchestrate and integrate with your existing payment processes. Instead of altering your business logic, Paygrid enhances the clearing and settlement stages based on the specific requirements of each payment scenario. Optimizing execution while developers maintain full control.
Challenge
With generalized infrastructure solutions:
Every payment would be handled individually, incurring their own costs each time.
Without any chain abstraction:
Payees need to select multiple assets and networks, knowing that this is what payers will have as an option.
Payees must handle complex treasury operations across multiple assets.
Payers are forced to match the payees choices. Spending significant time bridging, swapping, comparing prices, and doing a lot of complex mental work.
Value leakage overall between both parties as they try to bridge, swap and meet each others requirements or manage the treasury leading to overall MEV value lost, and simply worse UX.
Higher execution costs for payers and payees due to all the inefficiencies carried out due to excessive operations.
Recurring payments must be managed manually for payers, without any real pull-mechanisms.
Solution
By leveraging Paygrid as a clearing layer, applications benefit from:
Payment clearing
Optimize executions for each payment use-case.
Batch compatible payments.
Optimize execution costs across all payments, leading to a Unified Clearing Price.
Cost and execution quality optimization order flow.
Predictable recurring payments result in improved clearing mechanisms.
Chain Abstracted Payments
Meet payees and payers at their liquidity preferences.
Enable more payment options, without adding more treasury complexity for participants.
Abstract fragmented gas costs and fees behind a single corridor fee.
Chain abstract and improve the UX for all wallets, EOAs and Smart Contract Accounts.
Execute pre or post workflow hooks onchain for composability.
More value for participants
Pay less by protecting against negative MEV exploits.
Enhance and capture positive MEV value, applications can capture it themselves or reward their users with it.
Network effects improve all participants overall value.
Lower operational overhead for participants
Simplify treasury operations.
Supports recurring pull payments, authorize once and pay automatically without any user interaction.
Support scheduled payments such as scheduling a batch of salary payments.
Fewer payment issues means less customer service overhead.
Use cases for payment workflows
B2B Payments
PSPs and platforms that facilitate B2B payments are well positioned to leverage Paygrid to achieve better UX for payees and payers alike, improving the overall payment conversion rates and reducing operational overhead for end-users. This provides more value and can set platforms apart.
Many workflows exist within the B2B payment scope such as regular salary payments, paying contractors and vendors, or for providing goods and services through invoices.
Workflow context
Instead of treating each transaction in isolation, Paygrid provides an optimized order flow that is context-aware for these payment workflows, optimizing for their needs. Let’s look at this anonymized PSP volume that handles B2B payments (your mileage may vary):
Payments are often $1,000 and above.
Wide range of payment flows: Same/cross-chain and swaps.
Stablecoins dominate with USDC and USDT typically accounting for over 90% of volume.
Predictable transaction patterns around business hours and end-of-month periods
Regular payment relationships between the same counterparties.
Recurring payment patterns.
Read more on B2B payments workflow benefits.
Use case: Commerce payments
Commerce payments demand a high degree of payment UX, users are often in a hurry, juggling many things in their day, they don’t have 30+ minutes to bridge, swap, engage all their mental effort to not make a mistake just to buy something worth $10. On top of that they don’t want to spend a lot of money with operational overhead, swap fees, bridge fees, and decipher other complex fee structures that over shadow the benefit of low processing fees.
Workflow context
Commerce payments are often under $500 for common applications, and can go higher for high value commerce applications. Often prioritizing balanced or speed executions.
Wide range of payment flows: Same/cross-chain and swaps. Your users might be using Celo in LatAm, while a payee might operate on Polygon in Europe. Individual preferences for wallets becomes a high consideration point.
Wide range of tokens and assets, while majority are in stablecoins, non standard tokens emerge and native tokens as well. Users typically pay with whatever they have.
Recurring payment patterns.
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