Pay with Crypto. Settle Like Direct Debit.
Crypto Direct Debit (CDD) is a plug-and-play alternative payment method that lets customers pay directly from their non-custodial crypto wallets while merchants receive clean, compliant, card-like settlement through their existing PSP.
What is Crypto Direct Debit?
CDD turns any compatible crypto wallet into a direct-debit-style payment rail. Users authorize collections from a non-custodial wallet, while you remain fully integrated with your existing PSP and settlement flows.
Turn wallets into direct-debit rails
CDD enables recurring or one-off payments directly from a user’s non-custodial wallet. We orchestrate the background logic that makes crypto behave like a familiar direct-debit experience, without the user ever losing control of their assets.
The user sees a simple, unified payment interface. Behind the scenes, CDD manages wallet authorization, crypto acquisition, orchestration, and on-chain execution—without ever holding funds.
And for customers who don’t yet hold crypto, we partner with regulated on-ramp providers so they can instantly top up their wallet within the same seamless flow.
Key characteristics
- Works as a stand-alone APM in your checkout.
- Supports recurring and one-off payments via on-chain mandates.
- Uses non-custodial wallets; CDD never takes custody of funds.
- Leverages your existing PSP and banking/acquiring relationships for fiat settlement.
- Designed to support high-velocity, high-risk, and cross-border use cases.
Why We Don’t Require a Payment License
CDD is designed as a technical service provider, not a financial institution. We orchestrate instructions and smart contracts between licensed entities, but do not handle funds ourselves.
What CDD does not do
- We do not hold or control customer fiat.
- We do not custody crypto assets.
- We do not issue stored value or e-money.
- We do not act as merchant-of-record or remittance provider.
- We do not replace your regulated PSPs, banks, or on-ramps.
What CDD does do
- Provides a dedicated APM interface where customers authorize:
- Wallet connection and merchant collection mandates.
- Any required crypto purchases or top-ups.
- Orchestrates APIs and smart contracts between your PSP, on-/off-ramps, and on-chain rails.
- Passes signed instructions based on explicit customer authorization.
In short, CDD routes messages and orchestrates smart-contract logic—we do not handle money flows. Your existing licensed partners perform all regulated activities.
Merchants and PSPs should still seek local legal advice for their own licensing and regulatory posture.
How It Works for Merchants
From a merchant perspective, CDD behaves like any other APM—just with crypto under the hood. To finance teams, it looks like a familiar, predictable settlement flow.
The customer chooses “Pay with Crypto Direct Debit” alongside your existing payment methods. CDD can be white-labeled to match your brand.
The user connects a non-custodial wallet and authorizes a collection mandate. Limits and parameters are clearly displayed, mirroring a classic direct-debit experience.
If additional funds are needed, fiat payment details are handled by your PSP or on-ramp partner. CDD never sees or stores card/bank data. We orchestrate the crypto purchase, wallet top-up, and on-chain direct-debit execution.
Based on the user’s mandate, CDD triggers on-chain payment collection, creating a stable, programmable crypto direct-debit flow for recurring or one-off debits.
You receive settlement via your existing PSP or a dedicated stablecoin payout arrangement—configured to your preference and regulatory setup.
To your operations and finance teams, CDD behaves like any other APM with clear reporting and predictable settlement, not a new crypto system to manage.
Target Verticals & Value
CDD is built for businesses that need reliable, repeatable crypto payment rails, especially in complex, cross-border, or high-risk environments.
Primary Verticals
- iGaming & Online Gambling (subject to local regulation)
- Trading Platforms & Brokerages (FX, CFD, derivatives)
- Crypto Exchanges & Wallet Providers
- Fintechs & Neobanks
- Subscriptions & SaaS
- Marketplaces & High-Risk Verticals
Vertical- and geo-specific restrictions can be configured per merchant. For detailed scoping, reach out to info@railshub.com.
Advantages by stakeholder
For Merchants
- Capture crypto-native customers who keep value on-chain.
- Reduce chargeback exposure and card network friction.
- Improve approval rates vs. traditional card payments.
- Make cross-border payments simpler with stablecoin rails.
For PSPs / Acquirers / Banks
- Add a crypto APM without building wallets or on-chain infrastructure.
- Expand your product set without changing your licensing perimeter.
- Win and retain merchants in crypto-focused or higher-risk verticals.
For End Users
- Use the wallet they already trust and control.
- Get clear, transparent collection mandates and limits.
- Enjoy direct-debit simplicity with on-chain transparency.
Compliance, AML & Risk Controls
CDD is designed to plug into your existing compliance stack, helping merchants and PSPs meet their obligations while keeping crypto payments controllable and auditable.
Risk & compliance features
- On-chain wallet and transaction screening via blockchain analytics partners.
- Configurable risk rules tailored to each merchant and vertical.
- Geo-based restrictions and blocking policies per market.
- Comprehensive audit trails of authorizations, mandates, and transactions.
CDD provides infrastructure and data. Merchants and their regulated partners remain responsible for KYC, AML, and licensing appropriate to their business and jurisdictions.
Technical service, not a regulated entity
By design, CDD stays outside the perimeter of financial licensing in most jurisdictions. Our focus is on:
- Secure orchestration of crypto payment instructions.
- Clear segregation between technical and regulated functions.
- Integration with licensed PSPs, banks, and on-/off-ramps.
For a detailed regulatory assessment for your specific use case or region, contact info@railshub.com.
Global Restrictions & Blocked Jurisdictions
CDD is not available in jurisdictions where crypto is illegal, criminalized, sanctioned, or where crypto payments are explicitly banned. In these markets, all merchants and users are blocked, regardless of vertical.
CDD Rule: All merchants and users are blocked in these countries—no vertical is considered safe or supportable.
For vertical-specific geo restrictions or questions about permitted markets (for example, iGaming vs. non-gambling use cases in particular regions), please contact: info@railshub.com.
Developer-Friendly Integration
CDD slots into your existing checkout and payment stack as another APM, with hosted flows taking care of wallet logic, mandates, and orchestration.
Implementation model
- Simple APM integration into your existing checkout or PSP routing.
- Hosted flows for wallet connection, mandate authorization, and crypto top-up.
- Webhooks and APIs for mandate management, transaction status, and reconciliation.
- Sandbox environment to simulate end-to-end payment journeys.
Launch support
- Solution design for your specific vertical and geos.
- Risk and compliance mapping alongside your existing partners.
- Co-marketing and go-to-market support for PSPs and platforms.
To discuss integration timelines or request technical documentation, email info@railshub.com.