DePay is a settlement mechanism designed to let users spend stablecoins directly from self-custody wallets while merchants receive payment in their local fiat currency through existing card and payment networks. In this model, the user’s wallet remains the source of funds at the moment of purchase, rather than requiring pre-funded custodial balances. Oobit is one example of a payments product that integrates DePay to support wallet-native spending experiences at traditional points of sale.
A typical DePay flow begins when a user connects a compatible wallet and selects a stablecoin (such as USDT or USDC) as the payment source. At checkout—either in-store via contactless “tap-to-pay” style rails or online—the user is presented with a transaction authorization request. The key interaction is a single signing event from the wallet, which approves the transfer required to settle the purchase, aligning the payment authorization step with on-chain execution rather than a separate preload or top-up process.
Once the user signs, DePay settles the payment on-chain by moving the specified stablecoin amount from the user’s wallet into the settlement pathway. This step typically includes quoting and locking the effective exchange rate and fees for the transaction, so the payer sees the stablecoin debit amount and the corresponding merchant payout value. Conversion from stablecoin to fiat is handled as part of the settlement and payout pipeline, allowing the merchant side to remain denominated in local currency while the user spends a blockchain asset.
For the merchant, the DePay-enabled transaction is completed as a standard fiat receipt through conventional acquiring and card/payment rails, meaning the merchant does not need to custody stablecoins or integrate blockchain infrastructure. The merchant receives local currency proceeds, and reconciliation follows familiar statements and reporting conventions. This separation—wallet-native crypto debit for the payer and fiat settlement for the merchant—is central to the approach, as it reduces changes required on the merchant side while preserving self-custody on the user side.