# Automated Settlement System through Smart Contracts

&#x20;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.

&#x20;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.



<table><thead><tr><th width="172" align="center">Item</th><th width="276" align="center">Existing System</th><th align="center">Smart Contract-Based System</th></tr></thead><tbody><tr><td align="center">Settlement Time</td><td align="center">Average 5 to 15 days</td><td align="center">Instant settlement</td></tr><tr><td align="center">Commission</td><td align="center">Present</td><td align="center">None</td></tr><tr><td align="center">Settlement Reliability</td><td align="center">Error-prone due to manual processing and centralized server</td><td align="center">Low error potential through automated coding</td></tr><tr><td align="center">Security</td><td align="center">Risk of hacking and data tampering</td><td align="center">Blockchain's decentralized structure prevents hacking and data tampering</td></tr><tr><td align="center">Transparent operation</td><td align="center">Transaction details are not disclosed; decision-making can be opaque</td><td align="center">All rules are predefined and operated transparently</td></tr><tr><td align="center">Scalability</td><td align="center">Complex and costly system changes and expansions</td><td align="center">Easily scalable based on blockchain technology</td></tr></tbody></table>

