Scheduled payments are predefined, automated transactions that occur on specific dates.
Scheduled payments are commonly used for a variety of purposes, including loan repayments, utility bills, subscription services, and rent payments. Payers can have payments made automatically on specific dates or at regular intervals, helping them to manage their finances more efficiently by avoiding late fees and maintaining a good credit score for example.
Scheduled payments work in such a way that the payee (receiver) sets up a scheduled payment with agreed terms, in which the specified amount is transferred from the payer to the receiver on the desired date. The payment will complete when the payer received an invoice and agrees to the payment. For example, the receiver sends an invoice (payment request) to the payer before the scheduled payment date with the desired payment information. The payment of the invoice is done after the payer has confirmed the invoice. These actions can be performed manually or automatically based on the smart contract.
With scheduled payments, the conditions and rules for making a payment are encoded within a smart contract. Once the predefined conditions are met or a certain date is reached, the smart contract will automatically transfer funds without any intermediaries from one party's UPCX address to the counterparty’s UPCX address. This ensures that scheduled payments are made on time and according to the agreed terms.
Scheduled payments can be used in a variety of applications, such as:
- Regular payments for subscription services or rent
- Automatic repayment of loans, ensuring timely and accurate payments
- Distribution of dividends and payments to investors in decentralized finance projects (DeFi)
- Payment based on milestones in a project (funds are released to the contractor upon completion of specific tasks)
Scheduled payments are executed in a transparent, secure and tamper-proof manner, reducing the likelihood of disputes and increasing trust between parties involved in transactions.
UPCX only allows withdrawals when the payer has given sufficient authorization.
By customizing UPCX's scheduled payment, it is possible to create various patterns of automatic payment and automatic withdrawal services.