diff --git a/tests/v2/test_waku_swap.nim b/tests/v2/test_waku_swap.nim
index 0c57e6e6c..612545bcc 100644
--- a/tests/v2/test_waku_swap.nim
+++ b/tests/v2/test_waku_swap.nim
@@ -72,6 +72,8 @@ procSuite "Waku SWAP Accounting":
     await sleepAsync(2000.millis)
 
     node1.wakuStore.setPeer(node2.peerInfo)
+    node1.wakuSwap.setPeer(node2.peerInfo)
+    node2.wakuSwap.setPeer(node1.peerInfo)
 
     proc storeHandler(response: HistoryResponse) {.gcsafe, closure.} =
       debug "storeHandler hit"
@@ -88,3 +90,51 @@ procSuite "Waku SWAP Accounting":
       node2.wakuSwap.accounting[node1.peerInfo.peerId] == -1
     await node1.stop()
     await node2.stop()
+
+  # TODO Add cheque here
+  asyncTest "Update accounting state after sending cheque":
+    let
+      nodeKey1 = crypto.PrivateKey.random(Secp256k1, rng[])[]
+      node1 = WakuNode.init(nodeKey1, ValidIpAddress.init("0.0.0.0"),
+        Port(60000))
+      nodeKey2 = crypto.PrivateKey.random(Secp256k1, rng[])[]
+      node2 = WakuNode.init(nodeKey2, ValidIpAddress.init("0.0.0.0"),
+        Port(60001))
+      contentTopic = ContentTopic(1)
+      message = WakuMessage(payload: "hello world".toBytes(), contentTopic: contentTopic)
+
+    var futures = [newFuture[bool](), newFuture[bool]()]
+
+    # Start nodes and mount protocols
+    await node1.start()
+    node1.mountSwap()
+    node1.mountStore()
+    await node2.start()
+    node2.mountSwap()
+    node2.mountStore()
+
+    await node2.subscriptions.notify("/waku/2/default-waku/proto", message)
+
+    await sleepAsync(2000.millis)
+
+    node1.wakuStore.setPeer(node2.peerInfo)
+    node1.wakuSwap.setPeer(node2.peerInfo)
+    node2.wakuSwap.setPeer(node1.peerInfo)
+
+    proc handler1(response: HistoryResponse) {.gcsafe, closure.} =
+      futures[0].complete(true)
+    proc handler2(response: HistoryResponse) {.gcsafe, closure.} =
+      futures[1].complete(true)
+
+    # TODO Handshakes - for now we assume implicit, e2e still works for PoC
+    await node1.query(HistoryQuery(topics: @[contentTopic]), handler1)
+    await node1.query(HistoryQuery(topics: @[contentTopic]), handler2)
+
+    check:
+      (await allFutures(futures).withTimeout(5.seconds)) == true
+      # Accounting table updated with credit and debit, respectively
+      # After sending a cheque the balance is partially adjusted
+      node1.wakuSwap.accounting[node2.peerInfo.peerId] == 1
+      node2.wakuSwap.accounting[node1.peerInfo.peerId] == -1
+    await node1.stop()
+    await node2.stop()
diff --git a/waku/v2/node/wakunode2.nim b/waku/v2/node/wakunode2.nim
index b1032fff4..75e23f4a1 100644
--- a/waku/v2/node/wakunode2.nim
+++ b/waku/v2/node/wakunode2.nim
@@ -426,6 +426,8 @@ when isMainModule:
   if conf.swap:
     mountSwap(node)
 
+  # TODO Set swap peer, for now should be same as store peer
+
   if conf.store:
     var store: MessageStore
 
diff --git a/waku/v2/protocol/waku_swap/waku_swap.nim b/waku/v2/protocol/waku_swap/waku_swap.nim
index 78a31a47e..41cf9c0b1 100644
--- a/waku/v2/protocol/waku_swap/waku_swap.nim
+++ b/waku/v2/protocol/waku_swap/waku_swap.nim
@@ -81,10 +81,44 @@ proc init*(T: type Cheque, buffer: seq[byte]): ProtoResult[T] =
 
 # TODO Test for credit/debit operations in succession
 
+proc sendCheque*(ws: WakuSwap) {.async.} =
+  # TODO Better peer selection, for now using hardcoded peer
+  let peer = ws.peers[0]
+  let conn = await ws.switch.dial(peer.peerInfo.peerId, peer.peerInfo.addrs, WakuSwapCodec)
+
+  info "sendCheque"
+
+  # TODO Add beneficiary, etc
+  # XXX Hardcoded amount for now
+  await conn.writeLP(Cheque(amount: 1).encode().buffer)
+
+  # Set new balance
+  # XXX Assume peerId is first peer
+  let peerId = ws.peers[0].peerInfo.peerId
+  ws.accounting[peerId] -= 1
+  info "New accounting state", accounting = ws.accounting[peerId]
+
+# TODO Authenticate cheque, check beneficiary etc
+proc handleCheque*(ws: WakuSwap, cheque: Cheque) =
+  info "handle incoming cheque"
+  # XXX Assume peerId is first peer
+  let peerId = ws.peers[0].peerInfo.peerId
+  ws.accounting[peerId] += int(cheque.amount)
+  info "New accounting state", accounting = ws.accounting[peerId]
+
 proc init*(wakuSwap: WakuSwap) =
   info "wakuSwap init 1"
   proc handle(conn: Connection, proto: string) {.async, gcsafe, closure.} =
-    info "NYI swap handle incoming connection"
+    info "swap handle incoming connection"
+    var message = await conn.readLp(64*1024)
+    # XXX This can be handshake, etc
+    var res = Cheque.init(message)
+    if res.isErr:
+      error "failed to decode rpc"
+      return
+
+    info "received cheque", value=res.value
+    wakuSwap.handleCheque(res.value)
 
   proc credit(peerId: PeerId, n: int) {.gcsafe, closure.} =
     info "Crediting peer for", peerId, n
@@ -94,6 +128,14 @@ proc init*(wakuSwap: WakuSwap) =
       wakuSwap.accounting[peerId] = -n
     info "Accounting state", accounting = wakuSwap.accounting[peerId]
 
+    # TODO Isolate to policy function
+    # TODO Tunable disconnect threshhold, hard code for PoC
+    let disconnectThreshhold = 2
+    if wakuSwap.accounting[peerId] >= disconnectThreshhold:
+      info "Disconnect threshhold hit, disconnect peer"
+    else:
+      info "Disconnect threshhold not hit"
+
   # TODO Debit and credit here for Karma asset
   proc debit(peerId: PeerId, n: int) {.gcsafe, closure.} =
     info "Debiting peer for", peerId, n
@@ -103,6 +145,15 @@ proc init*(wakuSwap: WakuSwap) =
       wakuSwap.accounting[peerId] = n
     info "Accounting state", accounting = wakuSwap.accounting[peerId]
 
+    # TODO Isolate to policy function
+    # TODO Tunable payment threshhold, hard code for PoC
+    let paymentThreshhold = 1
+    if wakuSwap.accounting[peerId] >= paymentThreshhold:
+      info "Payment threshhold hit, send cheque"
+      discard wakuSwap.sendCheque()
+    else:
+      info "Payment threshhold not hit"
+
   wakuSwap.handler = handle
   wakuSwap.codec = WakuSwapCodec
   wakuSwap.credit = credit
@@ -118,4 +169,8 @@ proc init*(T: type WakuSwap, switch: Switch, rng: ref BrHmacDrbgContext): T =
   result.text = "test"
   result.init()
 
+proc setPeer*(ws: WakuSwap, peer: PeerInfo) =
+  ws.peers.add(SwapPeer(peerInfo: peer))
+
 # TODO End to end communication
+
diff --git a/waku/v2/protocol/waku_swap/waku_swap_types.nim b/waku/v2/protocol/waku_swap/waku_swap_types.nim
index 7548d8778..e25b255a5 100644
--- a/waku/v2/protocol/waku_swap/waku_swap_types.nim
+++ b/waku/v2/protocol/waku_swap/waku_swap_types.nim
@@ -20,10 +20,13 @@ type
   CreditHandler* = proc (peerId: PeerId, amount: int) {.gcsafe, closure.}
   DebitHandler* = proc (peerId: PeerId, amount: int) {.gcsafe, closure.}
 
+  SwapPeer* = object
+    peerInfo*: PeerInfo
+
   WakuSwap* = ref object of LPProtocol
     switch*: Switch
     rng*: ref BrHmacDrbgContext
-    #peers*: seq[PeerInfo]
+    peers*: seq[SwapPeer]
     text*: string
     accounting*: Table[PeerId, int]
     credit*: CreditHandler