diff --git a/go.mod b/go.mod
index eac05ac2..a700daf6 100644
--- a/go.mod
+++ b/go.mod
@@ -11,6 +11,7 @@ require (
 	github.com/ethereum/go-ethereum v1.12.0 // TODO: Investigate
 	github.com/google/uuid v1.3.0
 	github.com/graph-gophers/graphql-go v1.3.0
+	github.com/hashicorp/golang-lru/v2 v2.0.5
 	github.com/ipfs/go-cid v0.4.1
 	github.com/jmoiron/sqlx v1.3.5
 	github.com/joho/godotenv v1.4.0
@@ -90,7 +91,6 @@ require (
 	github.com/hashicorp/go-bexpr v0.1.12 // indirect
 	github.com/hashicorp/go-multierror v1.1.1 // indirect
 	github.com/hashicorp/golang-lru v0.5.5-0.20210104140557-80c98217689d // indirect
-	github.com/hashicorp/golang-lru/v2 v2.0.5 // indirect
 	github.com/hashicorp/hcl v1.0.0 // indirect
 	github.com/holiman/bloomfilter/v2 v2.0.3 // indirect
 	github.com/holiman/uint256 v1.2.3 // indirect
diff --git a/pkg/payments/payments_manager.go b/pkg/payments/payments_manager.go
index 1b6f3697..1547846e 100644
--- a/pkg/payments/payments_manager.go
+++ b/pkg/payments/payments_manager.go
@@ -17,21 +17,44 @@
 package payments
 
 import (
+	"math/big"
 	"sync"
+	"time"
 
 	"github.com/cerc-io/ipld-eth-server/v5/pkg/log"
 	"github.com/ethereum/go-ethereum/common"
+	"github.com/hashicorp/golang-lru/v2/expirable"
 	"github.com/statechannels/go-nitro/node/engine"
 	"github.com/statechannels/go-nitro/node/engine/chainservice"
 	"github.com/statechannels/go-nitro/node/engine/store"
+	"github.com/statechannels/go-nitro/payments"
 
 	nitroNode "github.com/statechannels/go-nitro/node"
 	p2pms "github.com/statechannels/go-nitro/node/engine/messageservice/p2p-message-service"
+	nitroTypes "github.com/statechannels/go-nitro/types"
 )
 
-// TODO: Implement
+const (
+	DEFAULT_LRU_CACHE_MAX_ACCOUNTS             = 1000
+	DEFAULT_LRU_CACHE_ACCOUNT_TTL              = 30 * 60 // 30mins
+	DEFAULT_LRU_CACHE_MAX_VOUCHERS_PER_ACCOUNT = 1000
+	DEFAULT_LRU_CACHE_VOUCHER_TTL              = 5 * 60 // 5mins
+	DEFAULT_LRU_CACHE_MAX_PAYMENT_CHANNELS     = 10000
+	DEFAULT_LRU_CACHE_PAYMENT_CHANNEL_TTL      = DEFAULT_LRU_CACHE_ACCOUNT_TTL
+)
+
+type Payment struct {
+	voucher payments.Voucher
+	amount  *big.Int
+}
+
+type paymentVoucher struct {
+	payer       common.Address
+	voucherHash common.Hash
+}
+
 // Struct representing payments manager
-// Maintains either an in-process or communication with an out-of-process Nitro node
+// Maintains either an in-process Nitro node or communication with an out-of-process Nitro node
 type PaymentsManager struct {
 	// Whether to run an in-process Nitro node
 	runInProcessNitroNode bool
@@ -39,6 +62,12 @@ type PaymentsManager struct {
 	// In-process Nitro node; nil when runInProcessNitroNode is false
 	nitroNode *nitroNode.Node
 
+	receivedPayments *expirable.LRU[common.Address, *expirable.LRU[common.Hash, Payment]]
+
+	paidSoFarOnChannel *expirable.LRU[nitroTypes.Destination, *big.Int]
+
+	paymentListeners []chan paymentVoucher
+
 	// Used to signal shutdown of the service
 	quitChan chan bool
 }
@@ -56,24 +85,115 @@ func NewPaymentsManager(runInProcessNitroNode bool) (PaymentsManager, error) {
 		}
 	}
 
+	pm.receivedPayments = expirable.NewLRU[common.Address, *expirable.LRU[common.Hash, Payment]](
+		DEFAULT_LRU_CACHE_MAX_ACCOUNTS,
+		nil,
+		time.Second*DEFAULT_LRU_CACHE_ACCOUNT_TTL,
+	)
+
+	pm.paidSoFarOnChannel = expirable.NewLRU[nitroTypes.Destination, *big.Int](
+		DEFAULT_LRU_CACHE_MAX_PAYMENT_CHANNELS,
+		nil,
+		time.Second*DEFAULT_LRU_CACHE_PAYMENT_CHANNEL_TTL,
+	)
+
+	// Load existing open payment channels with amount paid so far from the stored state
+	err = pm.loadPaymentChannels()
+	if err != nil {
+		return PaymentsManager{}, err
+	}
+
 	return pm, nil
 }
 
 func (pm *PaymentsManager) Start(wg *sync.WaitGroup) {
-	// TODO: Implement
+	log.Info("starting payments manager")
+
+	// Channel for received vouchers
+	var receivedVouchers <-chan payments.Voucher
+	if pm.runInProcessNitroNode {
+		receivedVouchers = pm.nitroNode.ReceivedVouchers()
+	} else {
+		// TODO: Get vouchers from an out-of-process go-nitro node
+	}
+
+	wg.Add(1)
 	go func() {
-		wg.Add(1)
 		defer wg.Done()
-		<-pm.quitChan
+		pm.run(receivedVouchers)
 	}()
 }
 
 func (pm *PaymentsManager) Stop() error {
-	// TODO: Implement
+	log.Info("stopping payments manager")
 	close(pm.quitChan)
 	return nil
 }
 
+func (pm *PaymentsManager) run(receivedVouchers <-chan payments.Voucher) {
+	log.Info("starting voucher subscription...")
+	for {
+		select {
+		case voucher := <-receivedVouchers:
+			payer, err := pm.getChannelCounterparty(voucher.ChannelId)
+			if err != nil {
+				// TODO: Handle
+				panic(err)
+			}
+
+			paidSoFar, ok := pm.paidSoFarOnChannel.Get(voucher.ChannelId)
+			if !ok {
+				paidSoFar = big.NewInt(0)
+			}
+
+			paymentAmount := big.NewInt(0).Sub(voucher.Amount, paidSoFar)
+			pm.paidSoFarOnChannel.Add(voucher.ChannelId, voucher.Amount)
+			log.Infof("Received a payment voucher of %s from %s", paymentAmount.String(), payer.String())
+
+			paymentsMap, ok := pm.receivedPayments.Get(payer)
+			if !ok {
+				paymentsMap = expirable.NewLRU[common.Hash, Payment](
+					DEFAULT_LRU_CACHE_MAX_VOUCHERS_PER_ACCOUNT,
+					nil,
+					DEFAULT_LRU_CACHE_VOUCHER_TTL,
+				)
+
+				pm.receivedPayments.Add(payer, paymentsMap)
+			}
+
+			voucherHash, err := voucher.Hash()
+			if err != nil {
+				// TODO: Handle
+				panic(err)
+			}
+
+			paymentsMap.Add(voucherHash, Payment{voucher: voucher, amount: paymentAmount})
+
+			for _, listener := range pm.paymentListeners {
+				listener <- paymentVoucher{payer: payer, voucherHash: voucherHash}
+			}
+		case <-pm.quitChan:
+			log.Info("stopping voucher subscription loop")
+			// TODO: stop the nitro node if that means anything
+			return
+		}
+	}
+}
+
+func (pm *PaymentsManager) getChannelCounterparty(channelId nitroTypes.Destination) (common.Address, error) {
+	associatedPaymentChannel, err := pm.nitroNode.GetPaymentChannel(channelId)
+	if err != nil {
+		return common.Address{}, err
+	}
+
+	return associatedPaymentChannel.Balance.Payer, nil
+}
+
+func (pm *PaymentsManager) loadPaymentChannels() error {
+	// TODO: Implement
+	return nil
+}
+
 func initializeNitroNode() (*nitroNode.Node, error) {
 	// TODO: Configure
 	pkString := ""
@@ -122,7 +242,7 @@ func initializeNitroNode() (*nitroNode.Node, error) {
 		return nil, err
 	}
 
-	log.Info("Initializing message service", "tcp port", messageOpts.TcpPort, "web socket port", messageOpts.WsMsgPort)
+	log.Info("Initializing message service...", " tcp port=", messageOpts.TcpPort, " web socket port=", messageOpts.WsMsgPort)
 	messageOpts.SCAddr = *ourStore.GetAddress()
 	messageService := p2pms.NewMessageService(messageOpts)