Circle Paymaster simplifies stablecoin payments by enabling users to pay gas fees in USDC. Learn how it creates a more seamless transaction experience in your apps.
We're excited to introduce Circle Paymaster, our newest permissionless product that simplifies stablecoin payments by enabling users to pay gas fees in USDC. Now available on Arbitrum and Base, Paymaster allows developers to remove the need for native tokens like ETH and give users a frictionless transaction experience.
Built with a focus on scalability, Paymaster maintains sufficient native token liquidity with automated rebalancing to guarantee smooth operations and timely transaction processing.
The challenge of gas fees
Blockchain transactions typically require gas fees to be paid in the network's native token, such as ETH for Ethereum. This requirement can create friction for users who may not hold these native tokens or wish to avoid the complexity of managing multiple cryptocurrencies on multiple chains. It can also lead to transaction failures if users don't have sufficient native tokens to cover gas costs. For institutions, holding native tokens might also introduce regulatory uncertainty and accounting challenges.
How does Circle Paymaster work?
Paymaster simplifies USDC transactions by removing the need for native tokens. In this process, (1) the user initiates the transaction, (2) Paymaster receives USDC and handles paying native tokens to the blockchain, and (3) the recipient receives the USDC payment seamlessly.
With Paymaster, we solve a major friction point for onchain transactions, paving the way for broader adoption of stablecoin payments. Developers can integrate fast and realize benefits immediately:
- Seamless user experience: Users can interact with apps using only USDC. No more sourcing, holding, and managing native tokens.
- Permissionless & composable: Paymaster is permissionless for all developers and works with any ERC-4337-compatible wallet provider.
- Fast and easy integration: Our documentation makes integration straightforward, allowing you to focus on building great features rather than managing complex gas fee logistics.
Paymaster vs. Gas Station
With the launch of Paymaster, Circle now offers two options for developers to abstract the complexity of gas fees in their apps. These solutions cater to different use cases and developer preferences, providing flexibility in how gas fees are handled.
Paymaster: users pay gas fees in USDC
Paymaster is a permissionless onchain utility that enables users to pay gas fees in USDC. This product doesn't require a Circle Console account and is compatible with any ERC-4337 smart contract account (SCA). Users are responsible for paying the gas fee in USDC. This solution is ideal for developers who want to remove the friction of their users needing to manage native tokens like ETH.
Gas Station: developers sponsor gas fees for users
Gas Station is a feature of Circle Programmable Wallets that allows developers to sponsor gas fees for their end users, providing a fully gasless experience. To use this option, developers need to sign up for a Circle Console account and set up sponsorship policies. Gas Station only works with Programmable Wallets and allows developers to pay gas fees on behalf of their users via credit card. Gas Station is perfect for developers who want to completely remove the gas fee burden from their users.
Both solutions offer unique advantages, and the choice between them depends on the specific needs of the app and its user base. Developers should consider factors such as their target audience, desired user experience, supported blockchains, and pricing model when deciding which option to implement.
Look ahead: simplifying gas fees across blockchains
Paymaster is now live on Arbitrum and Base. This launch marks our first step in simplifying gas fee management across blockchains. In the coming months, we plan to expand our offering, including
- Support for additional blockchains, including Ethereum, Polygon PoS, Solana, and more
- Support for EOAs once the Ethereum Pectra upgrade is live with EIP-7702
- Improved DevEx for integration with CCTP to enable cross-chain gas payments, allowing users to pay gas fees on multiple blockchains with a USDC balance on a single blockchain.
This cross-chain functionality aims to streamline the user experience and reduce barriers to stablecoin payments by eliminating the need for users to hold native tokens for apps on every blockchain they use.
Get started today
Paymaster charges users 10% of the gas cost for each transaction where gas fees are paid in USDC. As an example, a gas fee of $0.01 will become $0.011 with Paymaster. This pricing model is designed to support the continued provision of reliable service while enabling ecosystem growth. The fee will be waived until June 30, 2025, so your users can experience the benefits of Paymaster without any additional costs for an extended period.
Access our docs for step-by-step instructions on how to integrate Paymaster into your apps. We look forward to seeing what you build!
Reviewed by Kevin Smith, Calvin Cai, Justin Bell, Corey Cooper, Aleph L, Alex Wagner, and Alokik Bhasin
