# What is Paymaster?

The ERC-4337 includes a smart contract specifically designed to manage gas payment policies. This feature allows developers to offer their users gas-free experiences through sponsored transactions or by utilizing ERC-20 tokens to cover gas fees.

These policies introduce versatility in two key aspects:\
\&#xNAN;**(1)** the mode of gas payment, allowing for different currencies to be used\
\&#xNAN;**(2)** identifying who bears the cost of gas, effectively eliminating the need for users to possess native blockchain tokens for blockchain interactions.

Paymasters, a component of this system, empower developers with several capabilities:

1. <mark style="color:blue;">**Sponsoring Gas Fees**</mark><mark style="color:blue;">:</mark> Developers can cover the gas costs for their users, facilitating smoother interactions.
2. <mark style="color:blue;">**Gas Payments in Stablecoins**</mark><mark style="color:blue;">:</mark> This option allows gas fees to be paid using stablecoins, providing a more predictable expense.
3. <mark style="color:blue;">**Gas Payments in Other ERC-20 Tokens**</mark><mark style="color:blue;">:</mark> Developers can enable users to pay gas fees with a variety of ERC-20 tokens, offering greater flexibility.

<figure><img src="https://60765551-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Ft5aALNdCiFoUiLotRi89%2Fuploads%2FSZhnpnwnPj9ZZoPBZgJE%2Fimage.png?alt=media&#x26;token=1c64ef6d-e37a-428c-aac3-fe2d3851ac93" alt=""><figcaption><p>Paymaster</p></figcaption></figure>

> **Sources**: [Ethereum](https://eips.ethereum.org/EIPS/eip-4337), [ERC4337.io](https://www.erc4337.io/), [Alchemy](https://www.alchemy.com/learn/account-abstraction)