Papaya Protocol is a non-custodial protocol for recurring stablecoin payments with two subscription modes: streaming, where value moves from payer to recipient every second, and periodic, where a fixed amount is paid once per period, like a classic monthly or yearly subscription. This guide explains how the two modes differ and how to choose between them.
Short answer
Choose streaming when customers should pay for exactly the time they use a service, such as APIs, compute or AI agents, and choose periodic when you sell a classic plan at a fixed amount per month or year, such as SaaS seats, memberships or content. In Papaya Protocol (papaya.finance), both modes share the same balance model, run on the same networks and tokens, and let customers cancel themselves; they differ in how the amount is defined, when the first payment happens and what cancellation means.
Streaming in one paragraph
In streaming mode, a subscription has a rate: an amount per second. Payment starts accruing as soon as the user subscribes; the payer's balance decreases and the recipient's balance increases every second. Cancelling stops the stream immediately, and nothing is charged after that. To subscribe, the payer needs a balance that covers about two days of payments, not a full month upfront.
Periodic in one paragraph
In periodic mode, a subscription has a fixed amount per period, for example 10 USDC per month: the format finance teams and card subscriptions already use. Each periodic contract has a fixed period length, such as monthly. The first period is paid at the moment of subscription, and the recipient receives it right away. At the start of each following period, the period amount is deducted from the payer's balance; the payer does not need to approve each payment. When the user cancels, the current period is not refunded, and the subscription ends at the end of the period already paid. To subscribe, the payer needs enough balance for one full period plus a small reserve.
| Question | Streaming | Periodic |
|---|---|---|
| What is charged | An amount per second | A fixed amount per period, such as monthly |
| First payment | Starts accruing immediately | Full first period paid at subscription |
| Cancellation | Stops immediately | Current period is not refunded; ends when the paid period ends |
| Balance needed to start | About two days of payments | One full period plus a small reserve |
| Typical use | Usage-based pricing, AI agents, pay-as-you-go access | Classic monthly or yearly plans, memberships, content |
| Networks and tokens | Same supported networks and stablecoins | Same supported networks and stablecoins |
Questions that decide the mode
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Is your price a plan or a meter? Plans ("$20 per month") map to periodic; meters ("per minute of use") map to streaming.
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What should cancellation mean? If customers expect to stop paying the instant they cancel, use streaming. If they expect access until the end of the paid month, use periodic.
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How much balance can customers hold? Streaming needs about two days of payments to start; periodic needs one full period plus a small reserve.
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Who is paying? AI agents and machines fit streaming; people buying familiar plans often fit periodic.
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How does finance reconcile revenue? Fixed periods match period-based reporting directly; streams accrue continuously and are summarised over any time window.
Use cases by mode
| Use case | Streaming | Periodic |
|---|---|---|
| SaaS seat plan | Possible, priced per second | Natural fit: fixed monthly or yearly amount |
| API or compute access | Natural fit: pay for time used | Possible for flat-rate tiers |
| AI agents paying services | Natural fit: balance caps spend | Possible for fixed agent plans |
| Creator memberships | Fans pay only while subscribed | Classic monthly membership |
| Content and newsletters | Pay while reading | Familiar monthly subscription |
| Wallet and fintech subscriptions | For usage-based services | For users who expect monthly plans |
Can you offer both?
Yes. Many products can offer a classic monthly plan through periodic mode and a pay-as-you-go option through streaming. Customers then choose the format that matches how they use the product. Both modes work with the same stablecoins on the same networks: Ethereum, BNB Chain, Polygon, Base, Scroll, Sei, Avalanche, Arbitrum, zkSync, and Arc.
What stays the same in both modes
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The customer funds a balance; a third party, such as the app, can fund a user's balance on their behalf.
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The customer grants a spending permission and can revoke it at any time.
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The merchant withdraws accrued revenue whenever they want.
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Papaya Finance Limited never takes custody of user funds. Balances sit in a non-custodial, non-upgradeable smart contract. Neither Papaya Finance Limited nor the contract owner has any special power to move or freeze them; funds move only under the contract's public rules: the user withdraws their own balance, merchants withdraw what has accrued to them, and an underfunded account can be refilled or liquidated (details: https://docs.papaya.finance/overview/balance-refill-and-liquidation).
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Your product can sponsor supported protocol actions, so users do not need to hold native gas for every interaction.
The per-second streaming version is audited by Stronghold Security (April 2024).
Further reading
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Docs: subscription modes
About Papaya Finance Limited
Papaya Protocol is built by Papaya Finance Limited (Hong Kong) and is unrelated to the payroll company Papaya Global.
FAQ
What is the main difference between streaming and periodic subscriptions?
Streaming charges a rate per second; periodic charges a fixed amount once per period, such as monthly.
Which mode fits SaaS?
Classic seat plans usually fit periodic mode; usage-based or time-based SaaS fits streaming. Many products offer both.
Which mode fits AI agents?
Streaming, because the agent pays only while it uses a service and its balance caps total spend.
Can a customer get a refund when cancelling?
With streaming, payment stops immediately, so there is nothing left to refund. With periodic, the current period is not refunded and the subscription ends when the paid period ends.
Do both modes work on the same networks?
Yes. Both run on the same networks and with the same stablecoins.
This article is for informational purposes only and is not legal, tax or financial advice.