diff --git a/.gitmodules b/.gitmodules
index 25dbf4e..04ea64a 100644
--- a/.gitmodules
+++ b/.gitmodules
@@ -1,9 +1,6 @@
 [submodule "lib/forge-std"]
 	path = lib/forge-std
 	url = https://github.com/foundry-rs/forge-std
-[submodule "lib/openzeppelin-contracts"]
-	path = lib/openzeppelin-contracts
-	url = https://github.com/OpenZeppelin/openzeppelin-contracts
 [submodule "lib/modular-contracts"]
 	path = lib/modular-contracts
 	url = https://github.com/thirdweb-dev/modular-contracts
diff --git a/foundry.toml b/foundry.toml
index bbc1b8d..e853876 100644
--- a/foundry.toml
+++ b/foundry.toml
@@ -13,7 +13,6 @@ test = 'test'
 out = 'artifacts_forge'
 libs = ["lib"]
 remappings = [
-  '@openzeppelin/contracts=lib/openzeppelin-contracts/contracts',
   '@ds-test=lib/ds-test/src/',
   '@std=lib/forge-std/src/',
 ]
diff --git a/lib/openzeppelin-contracts b/lib/openzeppelin-contracts
deleted file mode 160000
index 01ef448..0000000
--- a/lib/openzeppelin-contracts
+++ /dev/null
@@ -1 +0,0 @@
-Subproject commit 01ef448981be9d20ca85f2faf6ebdf591ce409f3
diff --git a/test/PayGateway.t.sol b/test/PayGateway.t.sol
index f0e8735..7039256 100644
--- a/test/PayGateway.t.sol
+++ b/test/PayGateway.t.sol
@@ -226,6 +226,51 @@ contract PayGatewayTest is Test {
         assertEq(mockERC20.balanceOf(receiver), receiverBalanceBefore + sendValue);
     }
 
+    function test_initiateTokenPurchase_erc20_directTransfer() public {
+        uint256 sendValue = 1 ether;
+        uint256 sendValueWithFees = sendValue + totalFeeAmount;
+        bytes memory targetCalldata = abi.encodeWithSignature("transfer(address,uint256)", receiver, sendValue);
+
+        // approve amount to gateway contract
+        vm.prank(sender);
+        mockERC20.approve(address(gateway), sendValueWithFees);
+
+        // create pay request
+        PayGatewayModule.PayRequest memory req;
+        bytes32 _transactionId = keccak256("transaction ID");
+
+        req.clientId = clientId;
+        req.transactionId = _transactionId;
+        req.tokenAddress = address(mockERC20);
+        req.tokenAmount = sendValue;
+        req.forwardAddress = payable(address(mockERC20));
+        req.expirationTimestamp = 1000;
+        req.data = targetCalldata;
+        req.payouts = payouts;
+
+        // generate signature
+        bytes memory _signature = _prepareAndSignData(
+            2, // sign with operator private key, i.e. 2
+            req
+        );
+
+        // state/balances before sending transaction
+        uint256 ownerBalanceBefore = mockERC20.balanceOf(owner);
+        uint256 clientBalanceBefore = mockERC20.balanceOf(client);
+        uint256 senderBalanceBefore = mockERC20.balanceOf(sender);
+        uint256 receiverBalanceBefore = mockERC20.balanceOf(receiver);
+
+        // send transaction
+        vm.prank(sender);
+        gateway.initiateTokenPurchase(req, _signature);
+
+        // check balances after transaction
+        assertEq(mockERC20.balanceOf(owner), ownerBalanceBefore + ownerFeeAmount);
+        assertEq(mockERC20.balanceOf(client), clientBalanceBefore + clientFeeAmount);
+        assertEq(mockERC20.balanceOf(sender), senderBalanceBefore - sendValueWithFees);
+        assertEq(mockERC20.balanceOf(receiver), receiverBalanceBefore + sendValue);
+    }
+
     function test_initiateTokenPurchase_nativeToken() public {
         uint256 sendValue = 1 ether;
         uint256 sendValueWithFees = sendValue + totalFeeAmount;
@@ -279,6 +324,53 @@ contract PayGatewayTest is Test {
         assertEq(receiver.balance, receiverBalanceBefore + sendValue);
     }
 
+    function test_initiateTokenPurchase_nativeToken_directTransfer() public {
+        uint256 sendValue = 1 ether;
+        uint256 sendValueWithFees = sendValue + totalFeeAmount;
+        bytes memory targetCalldata = "";
+
+        // create pay request
+        PayGatewayModule.PayRequest memory req;
+        bytes32 _transactionId = keccak256("transaction ID");
+
+        req.clientId = clientId;
+        req.transactionId = _transactionId;
+        req.tokenAddress = address(0xEeeeeEeeeEeEeeEeEeEeeEEEeeeeEeeeeeeeEEeE);
+        req.tokenAmount = sendValue;
+        req.forwardAddress = payable(address(receiver));
+        req.expirationTimestamp = 1000;
+        req.data = targetCalldata;
+        req.payouts = payouts;
+
+        console.logBytes32(clientId);
+        console.logBytes32(_transactionId);
+        console.log(sendValue);
+        console.log(address(mockTarget));
+        console.logBytes(targetCalldata);
+
+        // generate signature
+        bytes memory _signature = _prepareAndSignData(
+            2, // sign with operator private key, i.e. 2
+            req
+        );
+
+        // state/balances before sending transaction
+        uint256 ownerBalanceBefore = owner.balance;
+        uint256 clientBalanceBefore = client.balance;
+        uint256 senderBalanceBefore = sender.balance;
+        uint256 receiverBalanceBefore = receiver.balance;
+
+        // send transaction
+        vm.prank(sender);
+        gateway.initiateTokenPurchase{ value: sendValueWithFees }(req, _signature);
+
+        // check balances after transaction
+        assertEq(owner.balance, ownerBalanceBefore + ownerFeeAmount);
+        assertEq(client.balance, clientBalanceBefore + clientFeeAmount);
+        assertEq(sender.balance, senderBalanceBefore - sendValueWithFees);
+        assertEq(receiver.balance, receiverBalanceBefore + sendValue);
+    }
+
     function test_initiateTokenPurchase_events() public {
         uint256 sendValue = 1 ether;
         uint256 sendValueWithFees = sendValue + totalFeeAmount;
diff --git a/test/utils/MockERC20.sol b/test/utils/MockERC20.sol
index b71b22c..8dabd48 100644
--- a/test/utils/MockERC20.sol
+++ b/test/utils/MockERC20.sol
@@ -1,10 +1,24 @@
 // SPDX-License-Identifier: MIT
 pragma solidity ^0.8.22;
 
-import "@openzeppelin/contracts/token/ERC20/ERC20.sol";
+import "lib/solady/src/tokens/ERC20.sol";
 
 contract MockERC20 is ERC20 {
-    constructor(string memory name, string memory symbol) ERC20(name, symbol) {}
+    string private _name;
+    string private _symbol;
+
+    constructor(string memory name, string memory symbol) {
+        _name = name;
+        _symbol = symbol;
+    }
+
+    function name() public view override returns (string memory) {
+        return _name;
+    }
+
+    function symbol() public view override returns (string memory) {
+        return _symbol;
+    }
 
     function mint(address to, uint256 amount) public {
         _mint(to, amount);
diff --git a/test/utils/MockTarget.sol b/test/utils/MockTarget.sol
index 2d121bb..fccce10 100644
--- a/test/utils/MockTarget.sol
+++ b/test/utils/MockTarget.sol
@@ -1,7 +1,7 @@
 // SPDX-License-Identifier: MIT
 pragma solidity ^0.8.0;
 
-import "@openzeppelin/contracts/token/ERC20/IERC20.sol";
+import "lib/solady/src/tokens/ERC20.sol";
 import "lib/forge-std/src/console.sol";
 
 contract MockTarget {
@@ -23,7 +23,7 @@ contract MockTarget {
         emit TargetLog(sender, receiver, tokenAddress, tokenAmount, message);
         console.log("Transferring %s erc20 tokens from %s to %s", tokenAmount, sender, receiver);
 
-        require(IERC20(tokenAddress).transferFrom(msg.sender, receiver, tokenAmount), "Token transfer failed");
+        require(ERC20(tokenAddress).transferFrom(msg.sender, receiver, tokenAmount), "Token transfer failed");
     }
 
     function performNativeTokenAction(