Automated Reconciliation Engine - Proof-of-Settlement Service

In modern payments, the hard part is rarely “making the payment happen”. The hard part is proving (quickly and reliably) what happened, where it happened, and when it actually settled.

If you operate across multiple rails (cards, instant payments, e-money wallets, crypto rails), you already know the pain: every provider has its own report format, its own identifiers, and its own timing. Your finance team spends hours (or days) matching entries across systems, while operations teams chase “breaks” that turn out to be missing metadata or delayed settlements.

That’s exactly the gap our Automated Reconciliation Engine and Proof of Settlement services are designed to close.

The reconciliation problem nobody sees from the outside

Many businesses run reconciliation across three separate worlds:

1. PSP and payment network reports: Card acquirers, issuing processors, payment gateways, scheme reports, chargebacks, reversals, fees.

2. EMI / e-money ledgers: Customer wallets, internal transfers, holds and releases, fees, FX conversions, pooled accounts.

3. On-chain transactions: Stablecoin payouts, treasury moves, partner settlements, mint/burn flows, streaming payments.

Each world can be consistent internally—but consistency breaks down when you try to connect them.

So you get the classic outcomes:

• “The PSP says it’s paid, but it’s not in the wallet.”

• “The wallet shows the debit, but treasury can’t see settlement.”

• “The blockchain transaction exists, but auditors ask: how does it relate to the fiat ledger?”

• “End-of-month close becomes a recovery mission.”

This is where automation and verifiable proof become operational infrastructure—not a nice-to-have.

What the Automated Reconciliation Engine actually does

At a high level, our service gives you:

• Near real-time reconciliation across rails

• Matching of transactions from cards, instant payments, internal e-money movement, and on-chain transfers

• A single, auditable source of truth that can be verified—internally and externally

• Proof of settlement: a clean link between a fiat-side ledger entry and an on-chain settlement event (or vice versa)

In practice, it works like a “universal translator + matching brain + audit recorder”.

Execution focus: how it works in practice

1) Normalise data into one reconciliation language

Different rails describe the same real-world event in different ways.

A card capture might be called “presentment”, an EMI ledger calls it “credit”, and your accounting system wants “revenue”. On-chain you might have a token transfer or a stream event.

The engine ingests and normalises data from:

• Cards (authorisations, captures, refunds, chargebacks, fees)

• Instant payments (e.g., real-time bank transfers, confirmations, returns)

• Internal e-money movements (wallet-to-wallet, holds, releases, fees, FX legs)

• On-chain transfers (token movements, smart contract events, mint/burn, streaming events)

After normalisation, every transaction becomes a consistent object with:

• who paid / who received

• amount and currency

• timestamps and lifecycle status

• references to external systems

• settlement and fee components

This is the foundation for reliable matching.

2) Match transactions across rails (and manage exceptions)

Once everything speaks the same language, the engine matches entries using:

• shared identifiers where available

• deterministic rules (amount + time window + counterparty + reference)

• configurable tolerance rules (fee deltas, FX spreads, partial settlements)

• event-driven correlation (especially useful when payments arrive in multiple legs)

When the engine can’t match automatically, it creates an exception case with:

• the most likely candidates

• a reason code (missing reference, delayed settlement, partial payout, etc.)

• recommended next action (wait, request missing report, investigate)

This turns reconciliation from a spreadsheet activity into a workflow.

3) Proof of settlement: link fiat entries to on-chain truth

When settlement happens on-chain, the strongest anchor is the transaction hash (a unique “digital fingerprint” of the blockchain transaction).

Our Proof of Settlement service:

• stores the hash reference (and key metadata such as block number and timestamp)

• links it directly to the corresponding fiat-side ledger entry (or wallet movement)

• generates an auditable record that shows the entire path: PSP event → EMI ledger movement → on-chain settlement → confirmation

This is especially valuable when you need to prove:

• a partner was paid

• a treasury transfer was executed

• settlement occurred before a cut-off

• funds were streamed according to an agreed schedule

The result is simple: anyone reviewing the ledger can verify settlement without guesswork.

4) Configurable reconciliation frequency: intraday, daily, or event-driven

Not every business needs the same rhythm.

That’s why reconciliation can run:

• Intraday (every X minutes, ideal for high-volume platforms)

• Daily (classic close process, but automated)

• Event-driven (triggered when a payment settles, when a stream hits a threshold, when a payout batch completes)

Event-driven reconciliation becomes extremely powerful when your money flows are continuous (more on that below).

Why Ephelia is the preferred infrastructure for this journey

Automation works best when the underlying infrastructure is designed for both bank rails and token rails, not bolted together later.

Ephelia is positioned exactly in that intersection: it is described as a regulated fintech infrastructure platform combining Banking-as-a-Service rails with es-Currencies (regulated e-money tokens) plus a key capability: streaming, where value can move continuously in real time rather than only in discrete payments.

Ephelia’s advantage: one lifecycle across fiat and on-chain

A common reason reconciliation fails is that fiat-side money and token-side money live in two separate operational universes.

Ephelia’s model is built to connect traditional rails and on-chain settlement, so institutions don’t have to choose “either bank rails or blockchain”—they can combine both.

That matters because reconciliation needs consistent events and consistent controls.

What are es-Currencies (in simple terms)?

es-Currencies position themselves as e-money tokens on blockchain rails, aiming to combine blockchain programmability with the safety model of regulated e-money, including being 100% backed and redeemable on demand.

Also, “es” is described as standing for electronic streamable currency.

Why streaming changes reconciliation (in a good way)

Streaming means money moves like a flow, per second, per minute, per unit consumed, or per milestone reached.

This is not just a product feature. It’s a reconciliation advantage because:

• you have a clear “event trail” (start, ongoing events, end)

• settlement becomes measurable continuously

• exception handling becomes faster (you can spot a break after minutes, not days)

es-Currencies explicitly describe streamable payments with examples like salary “dripping” in real time and pay-per-use billing where funds flow as service is consumed.

That’s exactly the kind of environment where an automated engine outperforms manual processes by an order of magnitude.

Real-world use cases

Below are practical scenarios based on common operating models we see across fintech, platforms, and regulated entities.

Use case 1: Cross-border remittances with transparent settlement

Scenario

A remittance provider collects funds in one country (card or local transfer), credits an e-money wallet, and pays out in another country using on-chain settlement to reduce delays.

The usual pain

• The PSP confirms collection, but payout is delayed.

• FX creates small mismatches.

• Support teams spend time proving “where the money is”.

How it works with Ephelia + Automated Reconciliation

1. User funds via card/transfer → PSP report ingested.

2. Wallet credit happens on the e-money ledger.

3. Funds convert into es-Currency for settlement.

4. On-chain transfer executes and is confirmed.

5. Payout partner receives funds and completes cash-out.

What reconciliation looks like

• PSP collection is matched to the wallet credit.

• Wallet debit is matched to the es-Currency mint/transfer.

• The on-chain transaction hash becomes the Proof of Settlement record.

• If payout is delayed, the engine shows whether the delay is before or after on-chain settlement.

Outcome

• Faster issue resolution and fewer disputes.

• Clear proof of what settled and when.

• Stronger operational control for a model designed to be always-on and real time.

Use case 2: Gaming and iGaming payouts, prize pools, and affiliate commissions

Scenario

A gaming operator accepts deposits (cards and bank transfers), manages player wallets, and pays winnings and affiliate commissions—often across borders and outside banking hours.

The usual pain

• High transaction volume, many reversals.

• Payouts create breakages between wallet ledger and external settlement.

• Affiliates dispute commissions due to delayed reporting.

How Ephelia helps

Ephelia describes gaming operators using regulated fintech infrastructure for wallets, top-ups, and winnings payouts, while es-Currencies provide a modern settlement layer with streaming for controlled payouts and commissions.

What our engine adds

• Card deposits reconcile authorisation → capture → wallet credit automatically.

• Winnings can be paid as:

  • a one-off payout, or

  • a stream (e.g., controlled release over time, or per milestone)

• Affiliate commissions can be streamed and reconciled continuously.

Outcome

• Fewer disputes because everyone sees the same truth.

• Better risk control (payout stops immediately if conditions fail).

• Easier audits: you can prove settlement for each payout and commission cycle.

Use case 3: Marketplaces and platforms with complex seller payouts

Scenario

A marketplace collects payments from buyers (cards, instant bank payments), holds funds in e-money wallets, and pays out sellers—sometimes in stablecoins or on-chain rails for speed.

The usual pain

• Buyer payments arrive through different PSPs.

• Seller payouts happen in batches, often with fees and FX.

• Finance teams struggle to reconcile:

  • gross receipts

  • fees

  • net payouts

  • refunds and chargebacks

How it works with Automated Reconciliation

• Buyer payment is matched from PSP → wallet.

• Fees are separated automatically (scheme fees, PSP fees, platform fees).

• Seller payout is linked to:

  • instant payment rails, or

  • on-chain settlement (hash reference included in the payout record).

Where streaming becomes a differentiatorInstead of paying sellers once per week, the platform can stream settlement:

• per order delivered

• per day

• per hour during peak seasons

This reduces end-of-period payout pressure and improves seller trust—while the engine reconciles continuously.

Use case 4: Corporate treasury and intercompany settlement (24/7 visibility)

Scenario

A group with multiple entities needs to move liquidity across subsidiaries, manage FX, and settle internal balances quickly.

The usual pain

• Cut-off times slow visibility.

• Intercompany loans and settlements require manual reconciliation.

• Treasury lacks a real-time picture.

How Ephelia + our engine helps

Ephelia positions streaming as especially powerful for treasury and real-time movement of value as a flow.

Practical flow

• Entity A streams funds to Entity B to cover expected daily obligations.

• If B’s need changes, the stream is adjusted immediately.

• The engine reconciles:

  • internal ledger movements

  • on-chain settlement events

  • bank rail transfers (if/when funds are redeemed to fiat rails)

Outcome

• Lower idle balances.

• Faster close because intercompany accounts are always aligned.

• A cleaner audit trail for internal and external reporting.

Use case 5: Pay-per-use services and “continuous billing”

Scenario

A SaaS or IoT provider charges customers based on real usage: minutes, API calls, compute time, or consumption.

The usual pain

• Usage data and billing data don’t match.

• Invoices arrive late and cause disputes.

• Refunds become a manual negotiation.

How streaming fixes the business modelStreamable payments are described as enabling usage-based pricing where funds flow as service is consumed.

How reconciliation becomes simpler

• Usage event triggers a payment stream (or increases an existing stream).

• The engine matches:

  • usage logs (units consumed)

  • streaming payment events

  • ledger entries

• If service stops, payment stops—reducing disputes and counterparty risk.

Outcome

• Predictable cash flow.

• Fewer billing tickets.

• Clear proof that charging matched consumption.

Use case 6: Crypto exchanges and on/off ramps

Scenario

A crypto platform supports fiat deposits, token trading, and withdrawals in both fiat and stablecoins.

The usual pain

• Fiat ledger and on-chain ledger drift.

• Support can’t prove whether a user’s withdrawal is pending, failed, or completed.

• Compliance and audit require strong traceability.

How the service helps

• Fiat deposits reconcile PSP/bank reports to the e-money ledger.

• Stablecoin withdrawals reconcile ledger debit to on-chain settlement hash.

• Streaming can be used for:

  • controlled withdrawals

  • tiered payout limits

  • scheduled treasury movements

This creates a single record for each customer movement across fiat and on-chain.

What you gain: less risk, faster close, stronger trust

When reconciliation is automated and settlement is provable:

• Operational risk drops (fewer manual errors, fewer “unknowns”)

• Close cycles shrink (less end-of-month firefighting)

• Customer support gets faster (clear answers with evidence)

• Audit becomes easier (a single, verifiable ledger trail)

Most importantly, your platform stops being “just a transaction tool” and becomes infrastructure-grade, designed to scale across rails and across markets.

Ephelia’s infrastructure is particularly suited to this because it is explicitly built to combine regulated rails with token rails, and to support streaming money flows rather than only batch-style payments.

Closing thought

Payments are moving toward a world where money can be instant, programmable, and continuously settled. But the winners won’t be the ones who only move money faster.

They’ll be the ones who can answer, at any time:

“What happened to this payment?”…and prove it, end to end.

That’s what an Automated Reconciliation Engine with Proof of Settlement delivers.