diff --git a/web3.js/test/transaction-payer.test.js b/web3.js/test/transaction-payer.test.js
new file mode 100644
index 0000000000..dc1569a90b
--- /dev/null
+++ b/web3.js/test/transaction-payer.test.js
@@ -0,0 +1,159 @@
+// @flow
+import {Account, Connection, SystemProgram} from '../src';
+import {mockRpc, mockRpcEnabled} from './__mocks__/node-fetch';
+import {mockGetRecentBlockhash} from './mockrpc/get-recent-blockhash';
+import {url} from './url';
+import {sleep} from '../src/util/sleep';
+
+if (!mockRpcEnabled) {
+  // The default of 5 seconds is too slow for live testing sometimes
+  jest.setTimeout(30000);
+}
+
+test('transaction-payer', async () => {
+  const accountPayer = new Account();
+  const accountFrom = new Account();
+  const accountTo = new Account();
+  const connection = new Connection(url);
+
+  mockRpc.push([
+    url,
+    {
+      method: 'requestAirdrop',
+      params: [accountPayer.publicKey.toBase58(), 100],
+    },
+    {
+      error: null,
+      result:
+        '0WE5w4B7v59x6qjyC4FbG2FEKYKQfvsJwqSxNVmtMjT8TQ31hsZieDHcSgqzxiAoTL56n2w5TncjqEKjLhtF4Vk',
+    },
+  ]);
+  await connection.requestAirdrop(accountPayer.publicKey, 100);
+
+  mockRpc.push([
+    url,
+    {
+      method: 'requestAirdrop',
+      params: [accountFrom.publicKey.toBase58(), 12],
+    },
+    {
+      error: null,
+      result:
+        '0WE5w4B7v59x6qjyC4FbG2FEKYKQfvsJwqSxNVmtMjT8TQ31hsZieDHcSgqzxiAoTL56n2w5TncjqEKjLhtF4Vk',
+    },
+  ]);
+  await connection.requestAirdrop(accountFrom.publicKey, 12);
+
+  mockRpc.push([
+    url,
+    {
+      method: 'requestAirdrop',
+      params: [accountTo.publicKey.toBase58(), 21],
+    },
+    {
+      error: null,
+      result:
+        '8WE5w4B7v59x6qjyC4FbG2FEKYKQfvsJwqSxNVmtMjT8TQ31hsZieDHcSgqzxiAoTL56n2w5TncjqEKjLhtF4Vk',
+    },
+  ]);
+  await connection.requestAirdrop(accountTo.publicKey, 21);
+
+  mockGetRecentBlockhash();
+  mockRpc.push([
+    url,
+    {
+      method: 'sendTransaction',
+    },
+    {
+      error: null,
+      result:
+        '3WE5w4B7v59x6qjyC4FbG2FEKYKQfvsJwqSxNVmtMjT8TQ31hsZieDHcSgqzxiAoTL56n2w5TncjqEKjLhtF4Vk',
+    },
+  ]);
+
+  const transaction = SystemProgram.transfer(
+    accountFrom.publicKey,
+    accountTo.publicKey,
+    10,
+  );
+
+  const signature = await connection.sendTransaction(
+    transaction,
+    accountPayer,
+    accountFrom,
+  );
+
+  mockRpc.push([
+    url,
+    {
+      method: 'confirmTransaction',
+      params: [
+        '3WE5w4B7v59x6qjyC4FbG2FEKYKQfvsJwqSxNVmtMjT8TQ31hsZieDHcSgqzxiAoTL56n2w5TncjqEKjLhtF4Vk',
+      ],
+    },
+    {
+      error: null,
+      result: true,
+    },
+  ]);
+
+  let i = 0;
+  for (;;) {
+    if (await connection.confirmTransaction(signature)) {
+      break;
+    }
+
+    expect(mockRpcEnabled).toBe(false);
+    expect(++i).toBeLessThan(10);
+    await sleep(500);
+  }
+
+  mockRpc.push([
+    url,
+    {
+      method: 'getSignatureStatus',
+      params: [
+        '3WE5w4B7v59x6qjyC4FbG2FEKYKQfvsJwqSxNVmtMjT8TQ31hsZieDHcSgqzxiAoTL56n2w5TncjqEKjLhtF4Vk',
+      ],
+    },
+    {
+      error: null,
+      result: {Ok: null},
+    },
+  ]);
+  await expect(connection.getSignatureStatus(signature)).resolves.toEqual({
+    Ok: null,
+  });
+
+  mockRpc.push([
+    url,
+    {
+      method: 'getBalance',
+      params: [accountPayer.publicKey.toBase58()],
+    },
+    {
+      error: null,
+      result: 99,
+    },
+  ]);
+
+  // accountPayer should be less less than 100 as it paid for the transaction
+  // (exact amount less depends on the current cluster fees)
+  const balance = await connection.getBalance(accountPayer.publicKey);
+  expect(balance).toBeGreaterThan(0);
+  expect(balance).toBeLessThanOrEqual(99);
+
+  // accountFrom should have exactly 2, since it didn't pay for the transaction
+  mockRpc.push([
+    url,
+    {
+      method: 'getBalance',
+      params: [accountFrom.publicKey.toBase58()],
+    },
+    {
+      error: null,
+      result: 2,
+    },
+  ]);
+  expect(await connection.getBalance(accountFrom.publicKey)).toBe(2);
+});