PNPL Payment System
Play Now, Pay Later - flexible installment payments for NFT purchases.
Overview
The PNPL (Play Now, Pay Later) system allows users to purchase NFTs by paying 50% upfront and the remaining 50% in weekly installments. Users receive a wrapped NFT (wNFT) immediately for gameplay, which converts to the original NFT upon completion of all payments.
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.
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1️⃣
First Click (on the city)This is the initial call where data related to the loan being requested is returned.
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2️⃣
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.
How It Works
A $100 NFT with PNPL: User pays $50 upfront and receives the wNFT immediately for gameplay. The remaining $50 is charged in weekly payments. Once complete, the user receives full ownership of the original NFT.
Payment Flow
Payment Structure
Schedule
| Week | Payment Amount | Cumulative Paid | Remaining Balance |
|---|---|---|---|
| 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:
| Day | Action | User Communication |
|---|---|---|
| 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 Features
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Instant GameplayUsers can play immediately with the wrapped NFT (wNFT) while paying off the balance.
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50% Down PaymentLower barrier to entry - users only need half the price upfront.
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Automatic PaymentsWeekly installments are auto-charged from the user's token balance.
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Seamless TransitionwNFT converts to original NFT automatically upon final payment.
For Companies
When a player purchases an NFT using PNPL, the company immediately receives 100% of the NFT price from the Merso protocol. There are no payment delays or risks related to installment collection - Merso handles all the risk.
Company Benefits
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Immediate PaymentFull payment received upfront from Merso, regardless of user's installment schedule.
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No RiskNo exposure to payment defaults - Merso absorbs all credit risk.
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Enhanced SalesAccess to users who prefer flexible payment options, increasing conversion rates.
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User RetentionWeekly engagement as users return to ensure their payments are processed.
Technical Requirements
The company's smart contracts must accept the Merso wNFT collection alongside the original NFT collection, allowing players to use either asset interchangeably during gameplay. This ensures wNFT holders have the same in-game experience as original NFT holders.
For Players
Marketplace Purchase
The user purchases an NFT from the Game Marketplace using the PNPL protocol.
Required Transactions
The user executes two on-chain transactions:
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Approves the Merso protocol to manage the required in-game tokens.
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Completes the PNPL purchase transaction through the protocol.
Payment Structure
The user pays 50% of the total NFT price in tokens while the Merso protocol covers the remaining 50%. The outstanding balance is then repaid by the user in weekly installments.
Payment Monitoring
The system checks the user's token balance daily. If the user has insufficient tokens, they receive an email notification and the system attempts payment processing the following day. If the user lacks tokens for 5 consecutive days, their wNFT is burned.
Payment Completion
Once all installments are successfully completed, the user receives full ownership of the original NFT. During the installment period, the NFT cannot be transferred. Ownership transition occurs seamlessly after the final payment.
Failed Payment
If payment fails after 5 consecutive days, the protocol burns the wNFT and the user loses access to it permanently.
wNFT Restrictions
wNFT's only restriction is resale, transfer and staking features, during the installment collection period. Full gameplay functionality is maintained throughout the payment period.
| Feature | wNFT (During Payments) | Original NFT (After Completion) |
|---|---|---|
| Gameplay | ✓ Full Access | ✓ Full Access |
| Transfer | ✗ Restricted | ✓ Allowed |
| Resale | ✗ Restricted | ✓ Allowed |
| Staking | ✗ Restricted | ✓ Allowed |
Best Use Cases
High-Value NFTs
Perfect for premium items where the full price may be a barrier.
Active Players
Ideal for players who want to start playing immediately while paying over time.
Conversion Boost
Increases sales by lowering the upfront cost barrier for users.