--- path: /learn/fee-sponsorship/ title: Fee sponsorship for stablecoin payments description: Fee sponsorship lets an application pay network fees for users. Learn the roles, prerequisites, and operating controls for a sponsored payment. image: /og/2026-q4/og_2026-q4_learn_fee-sponsorship_title-f5_v02.png publishDate: 2026-10-26 label: Payments timeToRead: 4 faq: - question: Does a sponsored payment have no network fee? answer: There is still a network fee. The sponsor pays it instead of the sender, under the sponsor's configured policy. - question: Does sponsorship give the sponsor custody of user funds? answer: Fee sponsorship alone does not grant custody or permission to send other payments. Custody depends on the wallet and signing arrangement, which must be evaluated separately. - question: Can every transaction be sponsored automatically? answer: No. The wallet, client, transaction format, and fee payer must support the flow. The fee payer may also reject requests that fall outside its policy or budget. locale: en canonical: https://tempo.xyz/learn/fee-sponsorship/ --- # Fee sponsorship for stablecoin payments Fee sponsorship lets one account pay the network fee for a transaction authorized by another account. A payment application can cover that fee so its users do not need a separate balance for transaction costs. On Tempo, the sender still authorizes the payment and supplies the stablecoins being transferred. The sponsor authorizes the fee payment. Covering a fee does not give the sponsor control of the sender's account. ## The roles in a sponsored payment |Role|Responsibility| |-|-| |Sender|Approves the recipient, asset, amount, and transaction being submitted.| |Application|Decides which requests qualify for sponsorship and presents the payment status.| |Fee payer|Authorizes and funds the network fee for the approved transaction.| |Recipient|Receives the intended transfer, verified separately from fee authorization.| The [official fee sponsorship guide](/developers/docs/guide/payments/sponsor-user-fees/) describes these roles and the current integration. Sponsorship pays the network fee, not the transfer amount, an FX spread, or a receiving provider's charges. ## Prerequisites for an integration Choose a wallet and client flow that supports Tempo's sponsored transaction format. Define the network, payment token, fee token, and fee payer service before asking a user to sign. Test with accounts and assets intended for the selected environment. Tempo documents a hosted [Fee Payer API](/developers/docs/api/fee-payer/) and a [self-hosted relay handler](/developers/docs/server/relay-handler/). Follow the selected service's current authentication and funding instructions. A public testnet sponsor is a testing facility; production needs its own configured service and policy. For implementation details, use the official guide rather than copying a generic Ethereum paymaster example. The [Tempo Transaction specification](/developers/docs/protocol/transactions/spec-tempo-transaction/) explains what the sender and fee payer signatures authorize. ## Decide what the application will sponsor Sponsorship turns a user fee into an application expense. A useful policy defines approved contracts and methods, eligible users, spending limits, and the response when sponsorship is unavailable. For example, a payroll application might sponsor a worker's supported transfer from its wallet. That does not require it to sponsor arbitrary calls to every contract. The application should explain whether a declined sponsorship request prevents submission or presents a separate user-paid option. Record the fee against the application action or customer record. Monitor service errors and the available fee budget alongside payment success. A successful fee authorization and a successful payment are separate events in the integration. ## Keep the payment experience clear Show the amount the recipient is expected to receive and which fee the application covers. If other charges apply, display them separately. Avoid describing the whole flow as free when only the network fee is sponsored. Fee sponsorship can simplify [stablecoin payment collection](/learn/how-to-accept-stablecoin-payments/) and [batch payments](/learn/batch-payments/). Pair it with [transfer memos](/learn/transfer-memos/) when the operation needs a reference for reconciliation. These features address different parts of the workflow: who pays the fee and how the payment is identified. ## FAQ **Does a sponsored payment have no network fee?** There is still a network fee. The sponsor pays it instead of the sender, under the sponsor's configured policy. **Does sponsorship give the sponsor custody of user funds?** Fee sponsorship alone does not grant custody or permission to send other payments. Custody depends on the wallet and signing arrangement, which must be evaluated separately. **Can every transaction be sponsored automatically?** No. The wallet, client, transaction format, and fee payer must support the flow. The fee payer may also reject requests that fall outside its policy or budget. --- ## Site links - [Tempo home](/) - [Privacy policy](/privacy-policy/) - [LinkedIn](https://www.linkedin.com/company/tempo) - [X](https://x.com/tempo) - [YouTube](https://www.youtube.com/@tempo) ### Products - [Earn](/earn/) - [Routes](/routes/) - [Zones](/zones/) ### Solutions - [Agentic payments](/solutions/agentic-payments/) - [Cross-border payments](/solutions/cross-border-payments/) - [Institutional settlement](/solutions/institutional-settlement/) - [Stablecoin accounts](/solutions/stablecoin-accounts/) - [Tokenized deposits](/solutions/tokenized-deposits/) ### Developers - [Documentation](/developers) - [Tempo Explorer](https://explore.tempo.xyz/) - [Tempo API](/developers/docs/api/) - [Performance](/developers/performance) - [Status](https://status.tempo.xyz/) - [GitHub](https://github.com/tempoxyz) ### Resources - [Blog](/blog/) - [Customers](/customer-stories/) - [Learn](/learn/) - [OUSD](/ousd/) - [Partners](/partners/) - [Reports](/reports/) - [Stablecoin Advisory](/stablecoin-advisory/) ### Company - [About](/about/) - [Careers](/careers/) - [Brand kit](/brand/) - [FAQ](/faq/)