// GLOSSARY -- PAYMENTS & FINTECH

What is Invoice?

1 min read Updated

An invoice is a request for payment specifying amount, recipient, and terms — in crypto, often implemented as on-chain payment requests or structured data that agents and systems can process programmatically.

WHY IT MATTERS

Crypto invoices formalize payment requests. They specify: recipient address, amount, token type, chain, reference number, and due date. Structured invoice formats enable automated processing by accounting systems, payment agents, and treasury management tools.

Invoice protocols include Request Network (on-chain invoicing with payment tracking), EIP-681 (URL-based payment requests), and custom formats used by payment processors.

For AI agents processing payments, structured invoices are essential — they provide the machine-readable payment details the agent needs to execute accurate transfers.

FREQUENTLY ASKED QUESTIONS

How do crypto invoices work?
The invoice specifies: recipient address, amount, token, and chain. The payer sends a transaction matching these parameters. Payment confirmation is verified on-chain by matching the transaction to the invoice.
Can invoices be automated?
Yes. Structured invoices can be processed by automated systems — matching incoming payments to outstanding invoices, triggering payment workflows, and updating accounting records.
What about tax and compliance?
Crypto invoices should include the same information as traditional invoices (tax ID, descriptions, etc.). The payment medium is different but record-keeping requirements are the same.

FURTHER READING

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