Payment System
The Merso BNPL payment system enables users to purchase NFTs with flexible payment plans while maintaining full functionality in games.
You can watch this video to see how it works.
The video demonstrates the process where the game signs transactions, meaning the wallets are managed internally by the game and not through an external provider like Metamask.
First Click (on the city): This is the initial call where data related to the loan being requested is returned.
Second Click (purchase): This involves the second and third calls, which include balance authorization and the loan request/payment.
During the second call, both signatures with our smart contracts are managed by the developer through integrated wallets, which is why no popups appear.
🎯 Payment Overview
The BNPL system operates on a 50% upfront, 4-week payment plan structure where users pay half the NFT price immediately and the remaining balance over four weekly installments.
Step 1: NFT Selection
When a user decides to purchase an NFT using BNPL, they initiate the process by selecting the BNPL option in their game's marketplace. The user sees both regular purchase and BNPL options, allowing them to choose the payment method that best suits their needs.
Step 2: Upfront Payment
The user pays 50% of the NFT price upfront, which is transferred directly to the MersoBNPL smart contract. This upfront payment serves as the user's initial commitment to the purchase and demonstrates their intent to complete the transaction.
Step 3: Protocol Payment to Game
Once the user's 50% payment is received, the protocol immediately pays the full NFT price to the game company using tokens from the MersoTokenPool. This ensures the game company receives their full revenue upfront, eliminating any payment risk on their end.
Step 4: NFT Transfer to Protocol
The original NFT is transferred from the game company to the MersoBNPL contract, where it remains as collateral during the payment period. This transfer secures the NFT for the protocol while the user completes their payments.
Step 5: WrappedNFT Creation
A WrappedNFT is created and minted to the user's wallet. This WrappedNFT is a 1:1 copy of the original NFT with identical metadata, appearance, and functionality, allowing users to use it seamlessly in their games as if it were the original NFT.
Step 6: Weekly Payment Processing
The remaining 50% of the NFT price is divided into four equal weekly payments of 12.5% each. These payments are processed automatically by the protocol at 7-day intervals, with no action required from the user. The protocol handles all transaction costs, including gas fees.
Step 7: Payment Completion
Upon successful completion of all four weekly payments, the protocol transfers the original NFT to the user's wallet and burns the WrappedNFT, completing the BNPL transaction. This final step ensures users receive full ownership of their purchased NFT.
💰 Payment Flow
┌─────────────────────────────────────────────────────────────────┐
│ PAYMENT FLOW │
├─────────────────────────────────────────────────────────────────┤
│ │
│ 1. User selects NFT in game marketplace │
│ ┌─────────────────┐ │
│ │ Game UI │ │
│ └─────────────────┘ │
│ │ │
│ ▼ │
│ 2. User pays 50% upfront │
│ ┌─────────────────┐ ┌─────────────────┐ │
│ │ User Wallet │──50%──►│ Token Pool │ │
│ └─────────────────┘ └─────────────────┘ │
│ │ │
│ ▼ │
│ 3. MersoBNPL pays remaining % │
│ ┌─────────────────┐ ┌─────────────────┐ │
│ │ TokenPool │──X%───►│ Game Company │ │
│ └─────────────────┘ └─────────────────┘ │
│ │ │
│ ▼ │
│ 4. NFT transferred to MersoBNPL │
│ ┌─────────────────┐ ┌─────────────────┐ │
│ │ Game NFT │───────►│ MersoBNPL │ │
│ └─────────────────┘ └─────────────────┘ │
│ │ │
│ ▼ │
│ 5. WrappedNFT created and sent to user │
│ ┌─────────────────┐ ┌─────────────────┐ │
│ │ WrappedNFT │───────►│ User Wallet │ │
│ └─────────────────┘ └─────────────────┘ │
│ │ │
│ ▼ │
│ 6. Weekly payments begin │
│ ┌─────────────────┐ ┌─────────────────┐ │
│ │ User Wallet │──Weekly──►│ MersoBNPL │ │
│ └─────────────────┘ └─────────────────┘ │
│ │ │
│ ▼ │
│ 7. Payment completion │
│ ┌─────────────────┐ ┌─────────────────┐ │
│ │ Original NFT │───────►│ User Wallet │ │
│ └─────────────────┘ └─────────────────┘ │
│ ┌─────────────────┐ ┌─────────────────┐ │
│ │ WrappedNFT │───────►│ Burned │ │
│ └─────────────────┘ └─────────────────┘ │
└─────────────────────────────────────────────────────────────────┘📋 Payment Structure
Payment Breakdown
// Payment structure example
const paymentStructure = {
nftPrice: "1.0 ETH",
upfrontPayment: "0.5 ETH (50%)",
remainingBalance: "0.5 ETH (50%)",
weeklyPayment: "0.125 ETH (12.5% per week)",
totalPayments: 4,
paymentInterval: "7 days"
};Payment Schedule
0
50% upfront
50%
50%
1
12.5%
62.5%
37.5%
2
12.5%
75%
25%
3
12.5%
87.5%
12.5%
4
12.5%
100%
0%
🚨 Default Handling
If a user fails to maintain sufficient balance for a weekly payment, the protocol implements a 5-try system with daily attempts. Each failed attempt triggers an email notification to the user. If after 5 attempts the user still hasn't provided sufficient funds, the protocol executes a default, burning the WrappedNFT and retaining the original NFT as compensation.
The entire payment flow is designed to be user-friendly and automated, requiring minimal user intervention while providing comprehensive communication throughout the process. This approach maximizes user adoption while ensuring the protocol's financial sustainability through clear default handling and risk management.
Payment Failure Process
If users don't pay their weekly portion, the protocol implements a 5-try system:
Timeline
1
First payment attempt
Email notification
2
Second payment attempt
Email notification
3
Third payment attempt
Email notification
4
Fourth payment attempt
Email notification
5
Fifth payment attempt
Final email notification
6
Default execution
WrappedNFT burned, original NFT kept by protocol
💡 Key Benefits
For Users
Flexible Payments: Pay 50% upfront, rest over 4 weeks
No Gas Fees: Protocol handles all transaction costs
Seamless Gaming: WrappedNFT works exactly like original NFT
Automatic Processing: No manual payment actions required
Clear Communication: Email notifications for all payment events
For Game Companies
Immediate Revenue: Receive full NFT price upfront
No Payment Risk: Protocol assumes all payment risk
Seamless Integration: WrappedNFTs work identically to originals
User Retention: BNPL increases user purchasing power
Analytics: Comprehensive payment performance insights
For Protocol
Risk Management: 5-try default system with clear timeline
Revenue Generation: Difference between user payment and game payment
Automated Processing: No manual intervention required
Clear Communication: Email system keeps users informed
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