PayD: Stellar-Based Cross-Border Payroll Platform!

🧩 Project Summary

PayD is a revolutionary payroll system that enables organizations to pay employees, contractors, and partners across different countries using blockchain-based digital assets. By leveraging Stellar's fast, low-cost network, PayD replaces traditional banking rails with near-instant, transparent, and cost-effective payments.

Key Benefits:

• ⚡ Near-instant salary payments (seconds vs. days)
• 🔍 Transparent transaction tracking on-chain
• 💰 Lower cross-border fees (fraction of traditional banking)
• 📊 Stable-value payouts with predictable conversion rates

🚨 Problem This Solves

Traditional international payroll faces significant challenges:

Problem	Impact
International bank delays	Payments take 2–5 business days
High transfer fees	SWIFT + intermediary fees (often 5-15%)
Currency conversion issues	Unpredictable FX rates and hidden fees
Lack of proof	Difficult to verify payment delivery
Contractor/freelancer payments	Many unbanked or prefer digital methods

💡 Core Concept

Instead of routing through expensive banking infrastructure:

All transactions occur on-chain with full transparency and auditability.

🏗 System Architecture

┌─────────────────┐ ┌──────────────┐ ┌─────────────────┐ │ Organization │ │ Backend │ │ Stellar │ │ Dashboard │────│ (API) │────│ Network │ │ (Web App) │ │ │ │ │ └─────────────────┘ └──────────────┘ └─────────────────┘ │ │ │ ▼ ▼ ▼ ┌─────────────────┐ ┌──────────────┐ ┌─────────────────┐ │ Employee │ │ Payroll │ │ Employee │ │ Onboarding │ │ Engine │ │ Wallets │ └─────────────────┘ └──────────────┘ └─────────────────┘ │ ▼ ┌─────────────────┐ │ Local Anchors │ │ (Cash-out) │ └─────────────────┘

🔑 Main Actors

Actor	Role
Employer	Funds payroll, schedules payments, manages employees
Employee/Contractor	Receives salary in digital assets, converts to local currency
Backend System	Handles payroll logic, transaction processing
Stellar Network	Processes fast, low-cost transactions
Anchor Services	Converts digital assets to local bank/mobile money

💰 Asset Design on Stellar

PayD utilizes Stellar's asset issuance capabilities to create organization-specific stable assets:

Example Asset: ORGUSD

• Issuer Account: Controlled by the organization
• Backing: 1:1 with USD (or other stable currencies)
• Distribution: Through organization's distribution account
• Trustlines: Employees must accept the asset to receive payments

Stellar Concepts Employed

• Asset Issuance: Creating custom tokens for payroll
• Distribution Accounts: Managing bulk payments
• Trustlines: Employee wallet acceptance
• Anchors: Local currency conversion
• Fast Settlement: Sub-5 second transaction finality

⚙️ Core Features

1️⃣ Employer Dashboard

• Employee Management: Add/remove employees with wallet addresses
• Salary Configuration: Set amounts, frequencies (weekly/monthly)
• Bulk Upload: CSV import for payroll lists
• Payment Scheduling: Automated recurring payments
• Analytics: Payroll history, total costs, FX tracking

2️⃣ Employee Portal

• Salary Tracking: View incoming payments
• Transaction History: Complete on-chain records
• Balance Management: Asset balances and values
• Withdrawal Options: Multiple anchor services
• Wallet Integration: QR codes for easy setup

3️⃣ Payroll Engine (Backend)

Automated Payment Flow:

1. Checks scheduled payments at designated times
2. Verifies employer account balance and authorization
3. Signs and submits Stellar transactions
4. Processes bulk payments efficiently
5. Logs all transactions in database
6. Sends notifications to employees

4️⃣ FX & Conversion System

• Real-time Rates: Live asset-to-fiat conversion
• Anchor Fees: Transparent withdrawal costs
• Network Fees: Minimal Stellar transaction fees
• Multi-currency Support: Support for various local currencies

5️⃣ Transparency & Auditability

Every payment includes:

• Transaction Hash: Unique Stellar transaction ID
• Timestamp: Exact payment time
• On-chain Verification: Public ledger proof
• Audit Trail: Complete payment history

🛠 Tech Stack

Frontend

• React 19 - Modern UI framework
• TypeScript - Type-safe development
• Vite - Fast build tool
• Stellar Design System - Consistent UI components
• React Router - Client-side routing
• TanStack Query - Data fetching and caching

Backend

• Node.js - Runtime environment
• Express.js - API framework
• Stellar SDK - Blockchain integration
• PostgreSQL - Data persistence
• Redis - Caching and session management

Blockchain

• Stellar Network - Primary blockchain
• Soroban - Smart contracts (future expansion)
• Stellar Wallets Kit - Wallet integration

DevOps

• Docker - Containerization
• GitHub Actions - CI/CD pipelines
• ESLint + Prettier - Code quality
• Husky - Git hooks

🚀 Getting Started

Prerequisites

Ensure you have the following installed:

• Node.js v22+
• npm or yarn
• Rust (for Soroban contracts)
• Stellar CLI
• Docker (optional, for local development)

Installation

1. Clone the repository:

   git clone [https://github.com/your-org/payD.git](https://github.com/your-org/payD.git)
   cd payD
   Install dependencies:
   bash
   npm install
   Environment Setup:
   bash
   cp .env.example .env

Edit .env with your configuration

Database Setup: bash

Using Docker

docker run --name payd-postgres -e POSTGRES_PASSWORD=mypassword -d postgres:15

Or set up PostgreSQL manually

Configuration Edit .env with the following key variables:

env

Stellar Network

STELLAR_NETWORK=testnet # or mainnet STELLAR_HORIZON_URL=https://horizon-testnet.stellar.org

Database

DATABASE_URL=postgresql://user:password@localhost:5432/payd

API Keys

STELLAR_SECRET_KEY=your_issuer_secret_key ANCHOR_API_KEY=your_anchor_service_key

JWT

JWT_SECRET=your_jwt_secret Development Start the development server: bash npm run dev Build for production: bash npm run build Run tests: bash npm run test.