Prepaid Cards

ACH debit = pull = initiated by receiver ACH credit = push = initiated by sender

STABLECOIN PREPAID DEBIT CARDS

Push, prefunded, peer-to-peer transfer. Technically a credit because card wallet transfers.

WHY STABLECOINS FOR PREPAID DEBIT CARD SETTLEMENT? Instant zero-fee global 24/7/365 payments

  • Prefunded = no credit risk

  • Atomic transfers = no float

  • Blockchain redundancy = always online

  • Direct wallet-to-wallet = no middlemen

PUSH FLOW

Credit, Push, Transfer initiated by cardholder

COUNTERPARTIES

Cardholder Prepaid debit card wallet Blockchain Stablecoin Merchant wallet Merchant

FLOW

Originator → ODFI → Blockchain → RDFI → Receiver Cardholder → Card Wallet → Blockchain → Merchant Wallet → Merchant

PREPAID STABLECOIN CREDIT / TRANSFER / PUSH FLOW

  1. Cardholder requests payment

  2. Card wallet submits stablecoin transfer

  3. Blockchain debits card wallet

  4. Blockchain credits merchant wallet

  5. Merchant wallet confirms receipt to merchant

  6. Merchant provides receipt to cardholder

ROLES

  • Sender

  • Sender wallet

  • Blockchain

  • Recipient wallet

  • Recipient

FLOW

  1. Cardholder requests payment

  2. Card wallet broadcasts transfer

  3. Blockchain debits card wallet

  4. Blockchain credits merchant wallet

  5. Merchant wallet confirms

  6. Merchant issues receipt to Cardholder

PULL FLOW

Cardholder → Merchant → Merchant Wallet → Blockchain → Card Wallet → Cardholder

PREPAID STABLECOIN DEBIT TRANSFER / PULL FLOW

  1. Cardholder authorizes merchant to pull funds

  2. Merchant sends debit request

  3. Merchant wallet submits blockchain debit request

  4. Blockchain verifies card wallet balance

  5. Blockchain debits card wallet

  6. Blockchain credits merchant wallet

  7. Merchant wallet confirms receipt to merchant

Stablecoin Payment Flows

Digital currency transfers using stablecoins pegged to fiat currencies. Enables fast, low-cost transactions with blockchain security. Settlements occur in real-time without intermediaries.

COUNTERPARTIES

Sender Recipient Stablecoin issuer Blockchain network Wallet providers

Authorization

  1. Sender initiates a transfer via their wallet.

  2. Transaction is broadcast to the blockchain network.

  3. Network verifies sender’s balance and transaction validity.

  4. Transaction is approved and added to the blockchain.

Processing

  1. Transaction is processed on the blockchain.

  2. Smart contracts execute any required conditions.

  3. Network nodes confirm the transaction.

Settlement

  1. Stablecoin is credited to the recipient’s wallet.

  2. Transaction is permanently recorded on the blockchain.

MINTING & REDEEMING

MINT
1. Authenticate
2. Deposit USD
3. Convert USD to Stablecoin
4. Transfer Stablecoin to Customer

REDEEM
1. Authenticate
2. Create Deposit Address
3. Send Stablecoin to XFT
4. XFT Transfers USD to Bank Account

Visa Direct

VISA DIRECT FOR WALLET FLOW

  1. The sender initiates a payment using a visa direct client.

  2. The Visa Direct Client processes the payment through the Visa Direct Gateway.

  3. The Visa Direct Gateway connects to the Visa Payments Limited (VPL) network.

  4. A network of wallet aggregators and operators on the VPL is utilized to facilitate the transaction.

  5. The payment is transferred to the recipient's financial institution.

VISA DIRECT USER FLOW

  1. Sender initiates payment through a digital channel

  2. Create and submit OCT transaction

  3. Transaction is routed to recipient institution

  4. Receiving institution credits account and notifies recipient

  5. Recipient can access funds at POS or ATM

Automated Clearing House

ACH DATA FLOW

  1. Originator initiates a debit or credit payment order to the ODFI

  2. ODFI transmits the payment information to the ACH operator

  3. ACH operator receives data from the ODFI and sorts the entries by routing number

  4. ACH operator transmits the entries to the RDFI

  5. RDFI receives, processes, and posts the ACH data to the receiver account on settlement day

ACH CREDIT TRANSFER

  1. Alice sends a request to Bank A “Pay Bank B $5 for the benefit of Bob”

  2. Bank A verifies Alice’s identity and adequacy of Alice’s funds

  3. Bank A notifies Bank B of the payment

  4. Bank B verifies Bob has an account

  5. Bank B sends confirmation to Bank A

  6. Both banks send confirmation to their respective customers.

USER FLOW

  1. Alice sends a request to Bank A “Pay Bank B $5 for the benefit of Bob”

  2. Bank A verifies Alice’s identity and adequacy of Alice’s funds

  3. Bank A notifies Bank B of the payment

  4. Bank B verifies Bob has an account

  5. Bank B sends confirmation to Bank A

  6. Both banks send confirmation to their respective customers.

ACH TRANSFER

  1. The merchant provides the amount due.

  2. The customer provides authorization for the merchant to initiate payment.

  3. The ODFI debits the customer's account and sends the ACH files to the ACH operator.

  4. The ACH operator routes the ACH files to the receiving bank (RDFI).

  5. The RDFI processes the payment.

  6. The funds clear and are deposited into the merchant's account.

RESOURCES

Prepaid Pull

sequenceDiagram
    participant Cardholder
    participant CardWallet
    participant Network  as Blockchain
    participant MerchantWallet
    participant Merchant

    Merchant -->>CardWallet: Payment request
    Cardholder -->>MerchantWallet: Authorize pull
    MerchantWallet ->>Network: Submit transfer tx
    Network->>CardWallet: Debit stablecoin
    Network->>MerchantWallet: Credit stablecoin
    Merchant-->>Cardholder: Receipt

Prepaid Push Mermaid

sequenceDiagram
    participant Cardholder
    participant CardWallet
    participant Network  as Blockchain
    participant MerchantWallet
    participant Merchant
    Cardholder->>CardWallet: Payment request
    CardWallet->>Network: Submit transfer tx
    Network-->>CardWallet: Debit stablecoin
    Network-->>MerchantWallet: Credit stablecoin
    MerchantWallet-->>Merchant: Funds confirmed
    Merchant-->>Cardholder: Receipt

Automated Clearing House

TRADITIONAL MONEY MARKET FUND
1 Unit A initiates MMF redemption
2 Unit A approves MMF redemption
3 MMF redemption settlement (T+0 or T+1)
4 Unit A confirms MMF proceeds landed in bank
5 Unit A initiates MMF payment to Unit B
6 Unit A approves payment to Unit B
7 Unit B receives payment, initiates MMF purchase and associated payment
8 Unit B approves MMF purchase and associated payment
9 Funds arrive at MMF, begin earning interest (T+0 to T+1)

TOKENIZED MONEY MARKET FUND
1 Unit A initiates transfer of MMF tokens to Unit B
2 Unit A approves transfer of MMF tokens to Unit B
3 Funds arrive in Unit B's wallet and start earning yield instantly, with no yield lost during transaction

IDN Flows

Plant UML Pull

@startuml
participant Cardholder
participant CardWallet
participant Blockchain
participant MerchantWallet
participant Merchant

Merchant --> CardWallet : Payment request
Cardholder --> MerchantWallet : Authorize pull

MerchantWallet -> Blockchain : Submit transfer tx
Blockchain -> CardWallet : Debit stablecoin
Blockchain -> MerchantWallet : Credit stablecoin
Merchant --> Cardholder : Receipt
@enduml

pull

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