diff --git a/packages/backend/src/graphql/resolvers/combined_payments.test.ts b/packages/backend/src/graphql/resolvers/combined_payments.test.ts
index c53367e749..f2699ac423 100644
--- a/packages/backend/src/graphql/resolvers/combined_payments.test.ts
+++ b/packages/backend/src/graphql/resolvers/combined_payments.test.ts
@@ -55,6 +55,7 @@ describe('Payment', (): void => {
 
     const outgoingPayment = await createOutgoingPayment(deps, {
       walletAddressId: outWalletAddressId,
+      method: 'ilp',
       receiver: `${Config.publicHost}/${uuid()}`,
       debitAmount: {
         value: BigInt(56),
@@ -151,6 +152,7 @@ describe('Payment', (): void => {
 
     const outgoingPayment = await createOutgoingPayment(deps, {
       walletAddressId: outWalletAddressId,
+      method: 'ilp',
       ...baseOutgoingPayment
     })
 
@@ -159,6 +161,7 @@ describe('Payment', (): void => {
     })
     await createOutgoingPayment(deps, {
       walletAddressId: outWalletAddressId2,
+      method: 'ilp',
       ...baseOutgoingPayment
     })
 
diff --git a/packages/backend/src/graphql/resolvers/liquidity.test.ts b/packages/backend/src/graphql/resolvers/liquidity.test.ts
index e9ea1200c5..c81089197f 100644
--- a/packages/backend/src/graphql/resolvers/liquidity.test.ts
+++ b/packages/backend/src/graphql/resolvers/liquidity.test.ts
@@ -1585,6 +1585,7 @@ describe('Liquidity Resolvers', (): void => {
       })
       payment = await createOutgoingPayment(deps, {
         walletAddressId,
+        method: 'ilp',
         receiver: `${Config.publicHost}/${uuid()}/incoming-payments/${uuid()}`,
         debitAmount: {
           value: BigInt(456),
diff --git a/packages/backend/src/graphql/resolvers/outgoing_payment.test.ts b/packages/backend/src/graphql/resolvers/outgoing_payment.test.ts
index 7ec0258353..b2f8d7e1bf 100644
--- a/packages/backend/src/graphql/resolvers/outgoing_payment.test.ts
+++ b/packages/backend/src/graphql/resolvers/outgoing_payment.test.ts
@@ -64,6 +64,7 @@ describe('OutgoingPayment Resolvers', (): void => {
   }): Promise<OutgoingPaymentModel> => {
     return await createOutgoingPayment(deps, {
       ...options,
+      method: 'ilp',
       receiver: `${Config.publicHost}/${uuid()}`,
       debitAmount: {
         value: BigInt(56),
diff --git a/packages/backend/src/index.ts b/packages/backend/src/index.ts
index ab7875f2fe..35400f1ab5 100644
--- a/packages/backend/src/index.ts
+++ b/packages/backend/src/index.ts
@@ -435,7 +435,7 @@ export function initIocContainer(
         'paymentMethodHandlerService'
       ),
       peerService: await deps.use('peerService'),
-      paymentPointerService: await deps.use('paymentPointerService')
+      walletAddressService: await deps.use('walletAddressService')
     })
   })
   container.singleton('outgoingPaymentRoutes', async (deps) => {
diff --git a/packages/backend/src/open_payments/payment/combined/service.test.ts b/packages/backend/src/open_payments/payment/combined/service.test.ts
index 4768c9f261..d4de0b4a6b 100644
--- a/packages/backend/src/open_payments/payment/combined/service.test.ts
+++ b/packages/backend/src/open_payments/payment/combined/service.test.ts
@@ -66,6 +66,7 @@ describe('Combined Payment Service', (): void => {
 
     const outgoingPayment = await createOutgoingPayment(deps, {
       walletAddressId: sendWalletAddressId,
+      method: 'ilp',
       receiver: receiverUrl,
       debitAmount: {
         value: BigInt(123),
diff --git a/packages/backend/src/open_payments/payment/outgoing/routes.test.ts b/packages/backend/src/open_payments/payment/outgoing/routes.test.ts
index cec6957b2c..0d1f0aae65 100644
--- a/packages/backend/src/open_payments/payment/outgoing/routes.test.ts
+++ b/packages/backend/src/open_payments/payment/outgoing/routes.test.ts
@@ -43,6 +43,7 @@ describe('Outgoing Payment Routes', (): void => {
     return await createOutgoingPayment(deps, {
       ...options,
       walletAddressId: walletAddress.id,
+      method: 'ilp',
       receiver: `${receivingWalletAddress}/incoming-payments/${uuid()}`,
       debitAmount: {
         value: BigInt(56),
diff --git a/packages/backend/src/open_payments/payment/outgoing/service.ts b/packages/backend/src/open_payments/payment/outgoing/service.ts
index 39d04968ac..a7b7bb0ebd 100644
--- a/packages/backend/src/open_payments/payment/outgoing/service.ts
+++ b/packages/backend/src/open_payments/payment/outgoing/service.ts
@@ -29,10 +29,6 @@ import {
   WalletAddressService,
   WalletAddressSubresourceService
 } from '../../wallet_address/service'
-import {
-  IlpPlugin,
-  IlpPluginOptions
-} from '../../../payment-method/ilp/ilp_plugin'
 import { sendWebhookEvent } from './lifecycle'
 import * as worker from './worker'
 import { Interval } from 'luxon'
@@ -56,7 +52,7 @@ export interface ServiceDependencies extends BaseService {
   accountingService: AccountingService
   receiverService: ReceiverService
   peerService: PeerService
-  makeIlpPlugin: (options: IlpPluginOptions) => IlpPlugin
+  paymentMethodHandlerService: PaymentMethodHandlerService
   walletAddressService: WalletAddressService
 }
 
diff --git a/packages/backend/src/payment-method/handler/service.test.ts b/packages/backend/src/payment-method/handler/service.test.ts
index 7381c02f87..2a80feed5c 100644
--- a/packages/backend/src/payment-method/handler/service.test.ts
+++ b/packages/backend/src/payment-method/handler/service.test.ts
@@ -69,17 +69,18 @@ describe('PaymentMethodHandlerService', (): void => {
   describe('pay', (): void => {
     test('calls ilpPaymentService for ILP payment type', async (): Promise<void> => {
       const asset = await createAsset(deps)
-      const paymentPointer = await createPaymentPointer(deps, {
+      const walletAddress = await createWalletAddress(deps, {
         assetId: asset.id
       })
       const { receiver, outgoingPayment } =
         await createOutgoingPaymentWithReceiver(deps, {
-          sendingPaymentPointer: paymentPointer,
-          receivingPaymentPointer: paymentPointer,
+          sendingWalletAddress: walletAddress,
+          receivingWalletAddress: walletAddress,
+          method: 'ilp',
           quoteOptions: {
             debitAmount: {
-              assetCode: paymentPointer.asset.code,
-              assetScale: paymentPointer.asset.scale,
+              assetCode: walletAddress.asset.code,
+              assetScale: walletAddress.asset.scale,
               value: 100n
             }
           }
diff --git a/packages/backend/src/payment-method/ilp/service.test.ts b/packages/backend/src/payment-method/ilp/service.test.ts
index 7964356260..3a7381f8c7 100644
--- a/packages/backend/src/payment-method/ilp/service.test.ts
+++ b/packages/backend/src/payment-method/ilp/service.test.ts
@@ -368,13 +368,13 @@ describe('IlpPaymentService', (): void => {
                   [incomingAssetCode]: exchangeRate
                 }))
 
-                const receivingPaymentPointer =
+                const receivingWalletAddress =
                   walletAddressMap[incomingAssetCode]
                 const sendingWalletAddress = walletAddressMap[debitAssetCode]
 
                 const options: StartQuoteOptions = {
                   walletAddress: sendingWalletAddress,
-                  receiver: await createReceiver(deps, receivingPaymentPointer),
+                  receiver: await createReceiver(deps, receivingWalletAddress),
                   debitAmount: {
                     assetCode: sendingWalletAddress.asset.code,
                     assetScale: sendingWalletAddress.asset.scale,
@@ -391,8 +391,8 @@ describe('IlpPaymentService', (): void => {
                     value: debitAmountValue
                   },
                   receiveAmount: {
-                    assetCode: receivingPaymentPointer.asset.code,
-                    assetScale: receivingPaymentPointer.asset.scale,
+                    assetCode: receivingWalletAddress.asset.code,
+                    assetScale: receivingWalletAddress.asset.scale,
                     value: expectedReceiveAmount
                   }
                 })
@@ -447,7 +447,8 @@ describe('IlpPaymentService', (): void => {
       const { incomingPayment, receiver, outgoingPayment } =
         await createOutgoingPaymentWithReceiver(deps, {
           sendingWalletAddress: walletAddressMap['USD'],
-          receivingPaymentPointer: walletAddressMap['USD'],
+          receivingWalletAddress: walletAddressMap['USD'],
+          method: 'ilp',
           quoteOptions: {
             debitAmount: {
               value: 100n,
@@ -476,7 +477,8 @@ describe('IlpPaymentService', (): void => {
       const { incomingPayment, receiver, outgoingPayment } =
         await createOutgoingPaymentWithReceiver(deps, {
           sendingWalletAddress: walletAddressMap['USD'],
-          receivingPaymentPointer: walletAddressMap['USD'],
+          receivingWalletAddress: walletAddressMap['USD'],
+          method: 'ilp',
           quoteOptions: {
             exchangeRate: 1,
             debitAmount: {
@@ -525,7 +527,8 @@ describe('IlpPaymentService', (): void => {
       const { incomingPayment, receiver, outgoingPayment } =
         await createOutgoingPaymentWithReceiver(deps, {
           sendingWalletAddress: walletAddressMap['USD'],
-          receivingPaymentPointer: walletAddressMap['USD'],
+          receivingWalletAddress: walletAddressMap['USD'],
+          method: 'ilp',
           quoteOptions: {
             debitAmount: {
               value: 100n,
@@ -563,7 +566,8 @@ describe('IlpPaymentService', (): void => {
       const { incomingPayment, receiver, outgoingPayment } =
         await createOutgoingPaymentWithReceiver(deps, {
           sendingWalletAddress: walletAddressMap['USD'],
-          receivingPaymentPointer: walletAddressMap['USD'],
+          receivingWalletAddress: walletAddressMap['USD'],
+          method: 'ilp',
           quoteOptions: {
             debitAmount: {
               value: 100n,
@@ -601,7 +605,8 @@ describe('IlpPaymentService', (): void => {
       const { receiver, outgoingPayment } =
         await createOutgoingPaymentWithReceiver(deps, {
           sendingWalletAddress: walletAddressMap['USD'],
-          receivingPaymentPointer: walletAddressMap['USD'],
+          receivingWalletAddress: walletAddressMap['USD'],
+          method: 'ilp',
           quoteOptions: {
             debitAmount: {
               value: 100n,
@@ -636,7 +641,8 @@ describe('IlpPaymentService', (): void => {
       const { receiver, outgoingPayment } =
         await createOutgoingPaymentWithReceiver(deps, {
           sendingWalletAddress: walletAddressMap['USD'],
-          receivingPaymentPointer: walletAddressMap['USD'],
+          receivingWalletAddress: walletAddressMap['USD'],
+          method: 'ilp',
           quoteOptions: {
             debitAmount: {
               value: 100n,
@@ -675,7 +681,8 @@ describe('IlpPaymentService', (): void => {
       const { receiver, outgoingPayment } =
         await createOutgoingPaymentWithReceiver(deps, {
           sendingWalletAddress: walletAddressMap['USD'],
-          receivingPaymentPointer: walletAddressMap['USD'],
+          receivingWalletAddress: walletAddressMap['USD'],
+          method: 'ilp',
           quoteOptions: {
             debitAmount: {
               value: 100n,
diff --git a/packages/backend/src/shared/pagination.test.ts b/packages/backend/src/shared/pagination.test.ts
index c12f9c74a3..d1018342a5 100644
--- a/packages/backend/src/shared/pagination.test.ts
+++ b/packages/backend/src/shared/pagination.test.ts
@@ -157,6 +157,7 @@ describe('Pagination', (): void => {
               const payment = await createOutgoingPayment(deps, {
                 walletAddressId: defaultWalletAddress.id,
                 receiver: secondaryWalletAddress.url,
+                method: 'ilp',
                 debitAmount,
                 validDestination: false
               })
diff --git a/packages/backend/src/tests/combinedPayment.ts b/packages/backend/src/tests/combinedPayment.ts
index 507b348790..8ac003d13f 100644
--- a/packages/backend/src/tests/combinedPayment.ts
+++ b/packages/backend/src/tests/combinedPayment.ts
@@ -54,6 +54,7 @@ export async function createCombinedPayment(
         })
       : await createOutgoingPayment(deps, {
           walletAddressId: sendWalletAddressId,
+          method: 'ilp',
           receiver: `${Config.publicHost}/${uuid()}`,
           validDestination: false
         })
diff --git a/packages/backend/src/tests/outgoingPayment.ts b/packages/backend/src/tests/outgoingPayment.ts
index f12c20c236..de38ea5ded 100644
--- a/packages/backend/src/tests/outgoingPayment.ts
+++ b/packages/backend/src/tests/outgoingPayment.ts
@@ -16,7 +16,7 @@ import assert from 'assert'
 
 type CreateTestQuoteAndOutgoingPaymentOptions = Omit<
   CreateOutgoingPaymentOptions & CreateTestQuoteOptions,
-  'quoteId' | 'method'
+  'quoteId'
 >
 
 export async function createOutgoingPayment(
@@ -29,7 +29,7 @@ export async function createOutgoingPayment(
     receiver: options.receiver,
     validDestination: options.validDestination,
     exchangeRate: options.exchangeRate,
-    method: 'ilp'
+    method: options.method
   }
   if (options.debitAmount) quoteOptions.debitAmount = options.debitAmount
   if (options.receiveAmount) quoteOptions.receiveAmount = options.receiveAmount
@@ -78,6 +78,7 @@ export async function createOutgoingPayment(
 
 interface CreateOutgoingPaymentWithReceiverArgs {
   receivingWalletAddress: WalletAddress
+  method: 'ilp',
   incomingPaymentOptions?: Partial<CreateIncomingPaymentOptions>
   quoteOptions?: Partial<
     Pick<
@@ -115,16 +116,15 @@ export async function createOutgoingPaymentWithReceiver(
     walletAddressId: args.receivingWalletAddress.id
   })
 
-  const connectionService = await deps.use('connectionService')
   const receiver = new Receiver(
-    incomingPayment.toOpenPaymentsType(
-      args.receivingWalletAddress,
-      connectionService.get(incomingPayment)!
+    incomingPayment.toOpenPaymentsTypeWithMethods(
+      args.receivingWalletAddress
     )
   )
 
   const outgoingPayment = await createOutgoingPayment(deps, {
     walletAddressId: args.sendingWalletAddress.id,
+    method: args.method,
     receiver: receiver.incomingPayment!.id!,
     ...args.quoteOptions
   })