diff --git a/yarn-project/cli-wallet/src/utils/options/fees.ts b/yarn-project/cli-wallet/src/utils/options/fees.ts
index c2ff52bb703a..48d36d173049 100644
--- a/yarn-project/cli-wallet/src/utils/options/fees.ts
+++ b/yarn-project/cli-wallet/src/utils/options/fees.ts
@@ -15,6 +15,7 @@ import { Option } from 'commander';
 
 import type { WalletDB } from '../../storage/wallet_db.js';
 import { createOrRetrieveAccount } from '../accounts.js';
+import { SponsoredFeePaymentMethod } from '../sponsored_fee_payment.js';
 import { aliasedAddressParser } from './options.js';
 
 export type CliFeeArgs = {
@@ -85,13 +86,13 @@ function getFeePaymentMethodParams(allowCustomFeePayer: boolean): OptionParams {
   return {
     method: {
       type: 'name',
-      description: 'Valid values: "fee_juice", "fpc-public", "fpc-private".',
+      description: 'Valid values: "fee_juice", "fpc-public", "fpc-private", "fpc-sponsored"',
       default: 'fee_juice',
     },
     ...(feePayer ? { feePayer } : {}),
     asset: {
       type: 'address',
-      description: 'The asset used for fee payment. Not required for the "fee_juice" method.',
+      description: 'The asset used for fee payment. Required for "fpc-public" and "fpc-private".',
     },
     fpc: {
       type: 'address',
@@ -260,17 +261,18 @@ export function parsePaymentMethod(
     return acc;
   }, {} as Record<string, string>);
 
-  const getFpcOpts = (parsed: Record<string, string>, db?: WalletDB) => {
+  const getFpc = () => {
     if (!parsed.fpc) {
       throw new Error('Missing "fpc" in payment option');
     }
+    return aliasedAddressParser('contracts', parsed.fpc, db);
+  };
+
+  const getAsset = () => {
     if (!parsed.asset) {
       throw new Error('Missing "asset" in payment option');
     }
-
-    const fpc = aliasedAddressParser('contracts', parsed.fpc, db);
-
-    return [AztecAddress.fromString(parsed.asset), fpc];
+    return AztecAddress.fromString(parsed.asset);
   };
 
   return async (sender: AccountWallet) => {
@@ -308,17 +310,23 @@ export function parsePaymentMethod(
         }
       }
       case 'fpc-public': {
-        const [asset, fpc] = getFpcOpts(parsed, db);
+        const fpc = getFpc();
+        const asset = getAsset();
         log(`Using public fee payment with asset ${asset} via paymaster ${fpc}`);
         const { PublicFeePaymentMethod } = await import('@aztec/aztec.js/fee');
         return new PublicFeePaymentMethod(fpc, sender);
       }
       case 'fpc-private': {
-        const [asset, fpc] = getFpcOpts(parsed, db);
+        const fpc = getFpc();
+        const asset = getAsset();
         log(`Using private fee payment with asset ${asset} via paymaster ${fpc}`);
         const { PrivateFeePaymentMethod } = await import('@aztec/aztec.js/fee');
         return new PrivateFeePaymentMethod(fpc, sender);
       }
+      case 'fpc-sponsored': {
+        const sponsor = getFpc();
+        return new SponsoredFeePaymentMethod(sponsor);
+      }
       case undefined:
         throw new Error('Missing "method" in payment option');
       default:
diff --git a/yarn-project/cli-wallet/src/utils/sponsored_fee_payment.ts b/yarn-project/cli-wallet/src/utils/sponsored_fee_payment.ts
new file mode 100644
index 000000000000..45f3dd4270b6
--- /dev/null
+++ b/yarn-project/cli-wallet/src/utils/sponsored_fee_payment.ts
@@ -0,0 +1,29 @@
+import type { FeePaymentMethod } from '@aztec/aztec.js/fee';
+import { FunctionSelector, FunctionType } from '@aztec/stdlib/abi';
+import { AztecAddress } from '@aztec/stdlib/aztec-address';
+
+export class SponsoredFeePaymentMethod implements FeePaymentMethod {
+  constructor(private paymentContract: AztecAddress) {}
+
+  getAsset(): Promise<AztecAddress> {
+    throw new Error('Asset is not required for sponsored fpc.');
+  }
+
+  getFeePayer() {
+    return Promise.resolve(this.paymentContract);
+  }
+
+  async getFunctionCalls() {
+    return [
+      {
+        name: 'sponsor_unconditionally',
+        to: this.paymentContract,
+        selector: await FunctionSelector.fromSignature('sponsor_unconditionally()'),
+        type: FunctionType.PRIVATE,
+        isStatic: false,
+        args: [],
+        returnTypes: [],
+      },
+    ];
+  }
+}
diff --git a/yarn-project/cli-wallet/test/flows/basic.sh b/yarn-project/cli-wallet/test/flows/basic.sh
index f301816909ba..de95ba79a4d4 100755
--- a/yarn-project/cli-wallet/test/flows/basic.sh
+++ b/yarn-project/cli-wallet/test/flows/basic.sh
@@ -11,6 +11,6 @@ aztec-wallet deploy token_contract@Token --args accounts:test0 Test TST 18 -f te
 aztec-wallet send mint_to_public -ca last --args accounts:test0 $AMOUNT -f test0
 RESULT=$(aztec-wallet simulate balance_of_public -ca last --args accounts:test0 -f test0 | grep "Simulation result:" | awk '{print $3}')
 
-section "Test account public balance is ${RESULT}"
+section "Account public balance is ${RESULT}"
 
 assert_eq ${RESULT} "${AMOUNT}n"
diff --git a/yarn-project/cli-wallet/test/flows/create_account_pay_native.sh b/yarn-project/cli-wallet/test/flows/create_account_pay_native.sh
index 6cac36685ab7..ca6d49eb5db0 100755
--- a/yarn-project/cli-wallet/test/flows/create_account_pay_native.sh
+++ b/yarn-project/cli-wallet/test/flows/create_account_pay_native.sh
@@ -4,13 +4,6 @@ source ../utils/setup.sh
 
 test_title "Create an account and deploy using native fee payment with bridging"
 
-echo
-warn ////////////////////////////////////////////////////////////////
-warn // WARNING: this test requires protocol contracts to be setup //
-warn //           aztec setup-protocol-contracts                   //
-warn ////////////////////////////////////////////////////////////////
-echo
-
 aztec-wallet create-account -a main --register-only
 aztec-wallet bridge-fee-juice 100000000000000000 main --mint --no-wait
 
diff --git a/yarn-project/cli-wallet/test/flows/private_authwit_transfer.sh b/yarn-project/cli-wallet/test/flows/private_authwit_transfer.sh
index 5acee2f91e41..1c6f9c3a0495 100755
--- a/yarn-project/cli-wallet/test/flows/private_authwit_transfer.sh
+++ b/yarn-project/cli-wallet/test/flows/private_authwit_transfer.sh
@@ -8,7 +8,7 @@ MINT_AMOUNT=42
 TRANSFER_AMOUNT=21
 
 source $TEST_FOLDER/shared/deploy_main_account_and_token.sh
-source $TEST_FOLDER/shared/mint_to_private.sh $MINT_AMOUNT
+source $TEST_FOLDER/shared/mint_to_private.sh $MINT_AMOUNT main
 source $TEST_FOLDER/shared/create_funded_account.sh operator
 
 aztec-wallet create-secret -a auth_nonce
diff --git a/yarn-project/cli-wallet/test/flows/private_transfer.sh b/yarn-project/cli-wallet/test/flows/private_transfer.sh
index 79036e1a12c4..01fa122cd8a0 100755
--- a/yarn-project/cli-wallet/test/flows/private_transfer.sh
+++ b/yarn-project/cli-wallet/test/flows/private_transfer.sh
@@ -8,7 +8,7 @@ MINT_AMOUNT=42
 TRANSFER_AMOUNT=21
 
 source $TEST_FOLDER/shared/deploy_main_account_and_token.sh
-source $TEST_FOLDER/shared/mint_to_private.sh $MINT_AMOUNT
+source $TEST_FOLDER/shared/mint_to_private.sh $MINT_AMOUNT main
 
 aztec-wallet create-account -a recipient --register-only
 
diff --git a/yarn-project/cli-wallet/test/flows/profile.sh b/yarn-project/cli-wallet/test/flows/profile.sh
index 2f7801f981ea..9c43bfe2812f 100755
--- a/yarn-project/cli-wallet/test/flows/profile.sh
+++ b/yarn-project/cli-wallet/test/flows/profile.sh
@@ -11,7 +11,7 @@ warn ///////////////////////////////////////////////////////////////////////////
 echo
 
 source $TEST_FOLDER/shared/deploy_main_account_and_token.sh
-source $TEST_FOLDER/shared/mint_to_private.sh 100
+source $TEST_FOLDER/shared/mint_to_private.sh 100 main
 source $TEST_FOLDER/shared/create_funded_account.sh operator
 
 # Create an authwit for the operator to transfer tokens from the main account to operator's own account.
diff --git a/yarn-project/cli-wallet/test/flows/public_authwit_transfer.sh b/yarn-project/cli-wallet/test/flows/public_authwit_transfer.sh
index 86c7b47cde71..8712dce51307 100755
--- a/yarn-project/cli-wallet/test/flows/public_authwit_transfer.sh
+++ b/yarn-project/cli-wallet/test/flows/public_authwit_transfer.sh
@@ -8,7 +8,7 @@ MINT_AMOUNT=42
 TRANSFER_AMOUNT=21
 
 source $TEST_FOLDER/shared/deploy_main_account_and_token.sh
-source $TEST_FOLDER/shared/mint_to_public.sh $MINT_AMOUNT
+source $TEST_FOLDER/shared/mint_to_public.sh $MINT_AMOUNT main
 source $TEST_FOLDER/shared/create_funded_account.sh operator
 
 aztec-wallet create-secret -a auth_nonce
diff --git a/yarn-project/cli-wallet/test/flows/shared/create_funded_account.sh b/yarn-project/cli-wallet/test/flows/shared/create_funded_account.sh
index 2660b6d1b92c..973042d30b6a 100644
--- a/yarn-project/cli-wallet/test/flows/shared/create_funded_account.sh
+++ b/yarn-project/cli-wallet/test/flows/shared/create_funded_account.sh
@@ -1,16 +1,12 @@
 ALIAS=$1
 
-section "Creating a funded account. Alias: $ALIAS"
+section "Creating a funded account (alias: $ALIAS)"
 
 aztec-wallet create-account -a $ALIAS --register-only
 aztec-wallet bridge-fee-juice 100000000000000000 $ALIAS --mint --no-wait
 
-# These two txs produce two blocks, allowing the claim to be used in the next block.
-aztec-wallet import-test-accounts
-TMP_ALIAS="tmp-$ALIAS"
-aztec-wallet deploy counter_contract@Counter --init initialize --args 0 accounts:test0 -f test0 -a $TMP_ALIAS
-aztec-wallet send increment -ca $TMP_ALIAS --args accounts:test0 accounts:test0 -f test0
+# The following produces two blocks, allowing the claim to be used in the next block.
+source $TEST_FOLDER/shared/deploy_token.sh tmp-token-$ALIAS $ALIAS
 
 # Deploying the account, paying the fee via bridging fee juice from L1 using the claim created above.
-# aztec-wallet deploy-account -f $ALIAS --payment method=fee_juice,claim
 aztec-wallet deploy-account -f $ALIAS --payment method=fee_juice,claim
diff --git a/yarn-project/cli-wallet/test/flows/shared/deploy_main_account_and_token.sh b/yarn-project/cli-wallet/test/flows/shared/deploy_main_account_and_token.sh
index 01b7bb6a42d4..b8164d438cd6 100644
--- a/yarn-project/cli-wallet/test/flows/shared/deploy_main_account_and_token.sh
+++ b/yarn-project/cli-wallet/test/flows/shared/deploy_main_account_and_token.sh
@@ -1,13 +1,14 @@
-section "Deploying token contract and creating a funded main account"
+TOKEN_ALIAS=token
+ACCOUNT_ALIAS=main
 
-aztec-wallet create-account -a main --register-only
-aztec-wallet bridge-fee-juice 100000000000000000 main --mint --no-wait
+section "Deploying token contract (alias: $TOKEN_ALIAS) and creating a funded account (alias: $ACCOUNT_ALIAS)"
 
-# Deploy token contract and set the main account as a minter using the pre-funded test account.
-# These two txs produce two blocks, allowing the claim to be used in the next block.
-aztec-wallet import-test-accounts
-aztec-wallet deploy token_contract@Token --args accounts:test0 Test TST 18 -f test0 -a token
-aztec-wallet send set_minter -ca token --args accounts:main true -f test0
+aztec-wallet create-account -a $ACCOUNT_ALIAS --register-only
+aztec-wallet bridge-fee-juice 100000000000000000 $ACCOUNT_ALIAS --mint --no-wait
+
+# Deploy token contract and set the main account as a minter.
+# The following produces two blocks, allowing the claim to be used in the next block.
+source $TEST_FOLDER/shared/deploy_token.sh $TOKEN_ALIAS $ACCOUNT_ALIAS
 
 # Deploying the account, paying the fee via bridging fee juice from L1 using the claim created above.
-aztec-wallet deploy-account -f main --payment method=fee_juice,claim
+aztec-wallet deploy-account -f $ACCOUNT_ALIAS --payment method=fee_juice,claim
diff --git a/yarn-project/cli-wallet/test/flows/shared/deploy_sponsored_fpc_and_token.sh b/yarn-project/cli-wallet/test/flows/shared/deploy_sponsored_fpc_and_token.sh
new file mode 100644
index 000000000000..0c51b2e22dc7
--- /dev/null
+++ b/yarn-project/cli-wallet/test/flows/shared/deploy_sponsored_fpc_and_token.sh
@@ -0,0 +1,25 @@
+TOKEN_ALIAS=token
+FPC_ALIAS=sponsoredFPC
+
+section "Deploying token contract (alias: $TOKEN_ALIAS) and creating a sponsored fpc (alias: $FPC_ALIAS)"
+
+aztec-wallet import-test-accounts
+aztec-wallet deploy sponsored_fpc_contract@SponsoredFPC -f test0 -a $FPC_ALIAS --no-init
+
+CLAIM=$(aztec-wallet bridge-fee-juice 100000000000000000 contracts:$FPC_ALIAS --mint --no-wait --json)
+
+retrieve () {
+  echo "$CLAIM" | grep "\"$1\"" | awk -F ': ' '{print $2}' | tr -d '",'
+}
+
+claimAmount=$(retrieve claimAmount)
+claimSecret=$(retrieve claimSecret)
+messageLeafIndex=$(retrieve messageLeafIndex)
+
+# The following produces two blocks, allowing the claim to be used in the next block.
+source $TEST_FOLDER/shared/deploy_token.sh $TOKEN_ALIAS test1
+
+# Claim the fee juice by calling the fee juice contract directly (address = 5).
+feeJuice=0x0000000000000000000000000000000000000000000000000000000000000005
+# Using a pre-funded test account because SponsoredFPC is not an account contract and can't be used to send a tx.
+aztec-wallet send claim -ca $feeJuice -c fee_juice_contract@FeeJuice --args contracts:$FPC_ALIAS $claimAmount $claimSecret $messageLeafIndex -f test0
diff --git a/yarn-project/cli-wallet/test/flows/shared/deploy_token.sh b/yarn-project/cli-wallet/test/flows/shared/deploy_token.sh
new file mode 100644
index 000000000000..02a83462ad88
--- /dev/null
+++ b/yarn-project/cli-wallet/test/flows/shared/deploy_token.sh
@@ -0,0 +1,8 @@
+TOKEN_ALIAS=$1
+MINTER=$2
+
+section "Deploying token contract (alias: $TOKEN_ALIAS) and setting '$MINTER' as a minter"
+
+aztec-wallet import-test-accounts
+aztec-wallet deploy token_contract@Token --args accounts:test0 Test TST 18 -f test0 -a $TOKEN_ALIAS
+aztec-wallet send set_minter -ca $TOKEN_ALIAS --args accounts:$MINTER true -f test0
diff --git a/yarn-project/cli-wallet/test/flows/shared/mint_to_private.sh b/yarn-project/cli-wallet/test/flows/shared/mint_to_private.sh
index 2dedc6e015ec..e40abe364d5c 100644
--- a/yarn-project/cli-wallet/test/flows/shared/mint_to_private.sh
+++ b/yarn-project/cli-wallet/test/flows/shared/mint_to_private.sh
@@ -1,11 +1,6 @@
-section "Minting tokens privately"
+MINT_AMOUNT=$1
+MINTER=$2
 
-aztec-wallet send mint_to_private -ca token --args accounts:main accounts:main $1 -f main
+section "Minting $MINT_AMOUNT tokens to $MINTER privately"
 
-RESULT_MAIN=$(aztec-wallet simulate balance_of_private -ca token --args accounts:main -f main | grep "Simulation result:" | awk '{print $3}')
-
-if [ "${1}n" != "$RESULT_MAIN" ]; then
-    echo
-    err "Couldn't mint tokens"
-    exit 1
-fi
+aztec-wallet send mint_to_private -ca token --args accounts:$MINTER accounts:$MINTER $MINT_AMOUNT -f $MINTER
diff --git a/yarn-project/cli-wallet/test/flows/shared/mint_to_public.sh b/yarn-project/cli-wallet/test/flows/shared/mint_to_public.sh
index 7a297cf93ccb..2826f2eee104 100644
--- a/yarn-project/cli-wallet/test/flows/shared/mint_to_public.sh
+++ b/yarn-project/cli-wallet/test/flows/shared/mint_to_public.sh
@@ -1,11 +1,6 @@
-section "Minting tokens publicly"
+MINT_AMOUNT=$1
+MINTER=$2
 
-aztec-wallet send mint_to_public -ca token --args accounts:main $1 -f main
+section "Minting $MINT_AMOUNT tokens to $MINTER publicly"
 
-RESULT_MAIN=$(aztec-wallet simulate balance_of_public -ca token --args accounts:main -f main | grep "Simulation result:" | awk '{print $3}')
-
-if [ "${1}n" != "$RESULT_MAIN" ]; then
-    echo
-    err "Couldn't mint tokens"
-    exit 1
-fi
+aztec-wallet send mint_to_public -ca token --args accounts:$MINTER $MINT_AMOUNT -f $MINTER
diff --git a/yarn-project/cli-wallet/test/flows/shield_and_transfer.sh b/yarn-project/cli-wallet/test/flows/shield_and_transfer.sh
index 6332bf1f9413..1b23d8190d1c 100755
--- a/yarn-project/cli-wallet/test/flows/shield_and_transfer.sh
+++ b/yarn-project/cli-wallet/test/flows/shield_and_transfer.sh
@@ -8,7 +8,7 @@ MINT_AMOUNT=42
 TRANSFER_AMOUNT=21
 
 source $TEST_FOLDER/shared/deploy_main_account_and_token.sh
-source $TEST_FOLDER/shared/mint_to_private.sh $MINT_AMOUNT
+source $TEST_FOLDER/shared/mint_to_private.sh $MINT_AMOUNT main
 
 aztec-wallet create-account -a recipient --register-only
 
diff --git a/yarn-project/cli-wallet/test/flows/sponsored_create_account_and_mint.sh b/yarn-project/cli-wallet/test/flows/sponsored_create_account_and_mint.sh
new file mode 100755
index 000000000000..af9674ed4f58
--- /dev/null
+++ b/yarn-project/cli-wallet/test/flows/sponsored_create_account_and_mint.sh
@@ -0,0 +1,21 @@
+#!/bin/bash
+set -e
+source ../utils/setup.sh
+
+test_title "Create new account and mint privately. Fees paid by a sponsor."
+
+MINT_AMOUNT=42
+
+source $TEST_FOLDER/shared/deploy_sponsored_fpc_and_token.sh
+
+PAYMENT_METHOD="--payment method=fpc-sponsored,fpc=contracts:sponsoredFPC"
+
+aztec-wallet create-account -a user $PAYMENT_METHOD
+
+aztec-wallet send set_minter -ca token --args accounts:user true -f test0 $PAYMENT_METHOD
+
+aztec-wallet send mint_to_private -ca token --args accounts:user accounts:user $MINT_AMOUNT -f user $PAYMENT_METHOD
+
+RESULT=$(aztec-wallet simulate balance_of_private -ca token --args accounts:user -f user | grep "Simulation result:" | awk '{print $3}')
+
+assert_eq ${RESULT} "${MINT_AMOUNT}n"