Direct payments

Overview

Direct payments signify a transaction methodology where funds flow uninterruptedly from the payer to the payee, without reliance on intermediaries or custodial entities. In the context of SimplePay, this approach ensures that merchants receive payments directly into their wallets, maximizing security, efficiency, and transparency.

Defining Characteristics

Uninterrupted Fund Flow:

• Payments are processed without detours through third-party custodians or payment gateways.

• This ensures that the transaction is completed quickly and efficiently.

Merchant-Centric Transactions:

• The recipient (merchant) retains complete control over the funds immediately upon transaction validation.

• There are no delays or restrictions commonly associated with centralized systems.

Blockchain Assurance:

• Transactions are recorded on-chain, providing a verifiable and tamper-proof record of payment.

• This transparency builds trust between all parties involved.

Workflow

1

Invoice Creation

The merchant generates an invoice specifying the amount, currency, and any metadata (e.g., order ID).

2

Customer Payment

Customers scan the QR code or follow the payment link associated with the invoice.

The transaction is initiated from the customer’s cryptocurrency wallet.

3

On-Chain Validation

SimplePay queries the blockchain to verify that the payment matches the invoice details.

If discrepancies occur, the system notifies the customer for corrective action.

4

Direct Transfer

Once validated, the funds are transferred immediately to the merchant’s wallet.

The SimplePay system marks the invoice as "Paid" and notifies the merchant.

Key Advantages

Speed

Direct payments eliminate delays caused by intermediary processing.

Transparency

Blockchain validation provides an open and traceable transaction history.

Security

Funds are transferred directly to the merchant, minimizing the risk of interception or fraud.

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Real-World Application

A customer purchases a product worth 100 USDT in TRC20 using SimplePay:

• The merchant generates an invoice through the API or dashboard.

• The customer scans the QR code with their cryptocurrency wallet and approves the payment.

• SimplePay validates the transaction on-chain, ensuring accuracy and compliance.

• The payment is deposited directly into the merchant’s wallet, and the invoice status is updated in real-time.

This streamlined process illustrates the efficiency and reliability of direct payments, making it a preferred choice for modern commerce.

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