> For the complete documentation index, see [llms.txt](https://editt.gitbook.io/smartpay/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://editt.gitbook.io/smartpay/english/solution/automated-settlement-system-through-smart-contracts.md). # Automated Settlement System through Smart Contracts Most mobile gift certificates are not sold directly by the businesses but rather through third-party intermediaries. When these mobile gift certificates are used in stores, the operator deducts commissions before settling the payment with the franchisee or passing it through the headquarters to the franchise owner. This interconnected settlement structure carries risks, as delays in receiving payments from the sales channels can prevent timely payments to franchise owners. In the SMTP ecosystem, the settlement structure is automated through smart contracts. This innovation significantly improves the complicated settlement process, which previously took as long as 5 to 15 days, ensuring an efficient and transparent process that enhances operational efficiency.

Item	Existing System	Smart Contract-Based System
Settlement Time	Average 5 to 15 days	Instant settlement
Commission	Present	None
Settlement Reliability	Error-prone due to manual processing and centralized server	Low error potential through automated coding
Security	Risk of hacking and data tampering	Blockchain's decentralized structure prevents hacking and data tampering
Transparent operation	Transaction details are not disclosed; decision-making can be opaque	All rules are predefined and operated transparently
Scalability	Complex and costly system changes and expansions	Easily scalable based on blockchain technology