diff --git a/src/payments/embed.js b/src/payments/embed.js
new file mode 100644
index 0000000..c636c80
--- /dev/null
+++ b/src/payments/embed.js
@@ -0,0 +1,56 @@
+const lazy = require('./lazy')
+const typef = require('typeforce')
+const OPS = require('bitcoin-ops')
+
+const bscript = require('../script')
+const BITCOIN_NETWORK = require('../networks').bitcoin
+
+function stacksEqual (a, b) {
+  if (a.length !== b.length) return false
+
+  return a.every(function (x, i) {
+    return x.equals(b[i])
+  })
+}
+
+// output: OP_RETURN ...
+function p2data (a, opts) {
+  if (
+    !a.data &&
+    !a.output
+  ) throw new TypeError('Not enough data')
+  opts = opts || { validate: true }
+
+  typef({
+    network: typef.maybe(typef.Object),
+    output: typef.maybe(typef.Buffer),
+    data: typef.maybe(typef.arrayOf(typef.Buffer))
+  }, a)
+
+  const network = a.network || BITCOIN_NETWORK
+  const o = { network }
+
+  lazy.prop(o, 'output', function () {
+    if (!a.data) return
+    return bscript.compile([OPS.OP_RETURN].concat(a.data))
+  })
+  lazy.prop(o, 'data', function () {
+    if (!a.output) return
+    return bscript.decompile(a.output).slice(1)
+  })
+
+  // extended validation
+  if (opts.validate) {
+    if (a.output) {
+      const chunks = bscript.decompile(a.output)
+      if (chunks[0] !== OPS.OP_RETURN) throw new TypeError('Output is invalid')
+      if (!chunks.slice(1).every(typef.Buffer)) throw new TypeError('Output is invalid')
+
+      if (a.data && !stacksEqual(a.data, o.data)) throw new TypeError('Data mismatch')
+    }
+  }
+
+  return Object.assign(o, a)
+}
+
+module.exports = p2data
diff --git a/src/payments/index.js b/src/payments/index.js
index 9e869f5..d445466 100644
--- a/src/payments/index.js
+++ b/src/payments/index.js
@@ -1,3 +1,4 @@
+const embed = require('./embed')
 const p2ms = require('./p2ms')
 const p2pk = require('./p2pk')
 const p2pkh = require('./p2pkh')
@@ -5,15 +6,7 @@ const p2sh = require('./p2sh')
 const p2wpkh = require('./p2wpkh')
 const p2wsh = require('./p2wsh')
 
-module.exports = {
-  p2ms: p2ms,
-  p2pk: p2pk,
-  p2pkh: p2pkh,
-  p2sh: p2sh,
-  p2wpkh: p2wpkh,
-  p2wsh: p2wsh
-}
+module.exports = { embed, p2ms, p2pk, p2pkh, p2sh, p2wpkh, p2wsh }
 
 // TODO
-// OP_RETURN
 // witness commitment
diff --git a/src/payments/p2data.js b/src/payments/p2data.js
new file mode 100644
index 0000000..e69de29
diff --git a/src/templates/nulldata.js b/src/templates/nulldata.js
index 2ad09d7..d42fd71 100644
--- a/src/templates/nulldata.js
+++ b/src/templates/nulldata.js
@@ -1,8 +1,6 @@
 // OP_RETURN {data}
 
 const bscript = require('../script')
-const types = require('../types')
-const typeforce = require('typeforce')
 const OPS = require('bitcoin-ops')
 
 function check (script) {
@@ -13,22 +11,4 @@ function check (script) {
 }
 check.toJSON = function () { return 'null data output' }
 
-function encode (data) {
-  typeforce([types.Buffer], data)
-
-  return bscript.compile([OPS.OP_RETURN].concat(data))
-}
-
-function decode (buffer) {
-  typeforce(check, buffer)
-
-  return bscript.decompile(buffer).slice(1)
-}
-
-module.exports = {
-  output: {
-    check: check,
-    decode: decode,
-    encode: encode
-  }
-}
+module.exports = { output: { check: check } }
diff --git a/test/fixtures/embed.json b/test/fixtures/embed.json
new file mode 100644
index 0000000..ccc0e70
--- /dev/null
+++ b/test/fixtures/embed.json
@@ -0,0 +1,63 @@
+{
+  "valid": [
+    {
+      "description": "output from output",
+      "arguments": {
+        "output": "OP_RETURN a3b147dbe4a85579fc4b5a1811e76620560e07267e62b9a0d6858f9127735cadd82f67e06c24dbc4"
+      },
+      "expected": {
+        "data": [
+          "a3b147dbe4a85579fc4b5a1811e76620560e07267e62b9a0d6858f9127735cadd82f67e06c24dbc4"
+        ],
+        "output": "OP_RETURN a3b147dbe4a85579fc4b5a1811e76620560e07267e62b9a0d6858f9127735cadd82f67e06c24dbc4",
+        "input": null,
+        "witness": null
+      }
+    },
+    {
+      "description": "output from data",
+      "arguments": {
+        "data": [
+          "a3b147dbe4a85579fc4b5a1811e76620560e07267e62b9a0d6858f9127735cadd82f67e06c24dbc4"
+        ]
+      },
+      "expected": {
+        "data": [
+          "a3b147dbe4a85579fc4b5a1811e76620560e07267e62b9a0d6858f9127735cadd82f67e06c24dbc4"
+        ],
+        "output": "OP_RETURN a3b147dbe4a85579fc4b5a1811e76620560e07267e62b9a0d6858f9127735cadd82f67e06c24dbc4",
+        "input": null,
+        "witness": null
+      }
+    }
+  ],
+  "invalid": [
+    {
+      "exception": "Not enough data",
+      "arguments": {}
+    }
+  ],
+  "dynamic": {
+    "depends": {
+      "data": [ "data", "output" ],
+      "output": [ "output", "data" ]
+    },
+    "details": [
+      {
+        "description": "embed",
+        "data": [
+          "a3b147dbe4a85579fc4b5a1811e76620560e07267e62b9a0d6858f9127735cadd82f67e06c24dbc4"
+        ],
+        "output": "OP_RETURN a3b147dbe4a85579fc4b5a1811e76620560e07267e62b9a0d6858f9127735cadd82f67e06c24dbc4"
+      },
+      {
+        "description": "embed",
+        "data": [
+          "a3b147dbe4a85579fc4b5a1811e76620560e0726",
+          "7e62b9a0d6858f9127735cadd82f67e06c24dbc4"
+        ],
+        "output": "OP_RETURN a3b147dbe4a85579fc4b5a1811e76620560e0726 7e62b9a0d6858f9127735cadd82f67e06c24dbc4"
+      }
+    ]
+  }
+}
diff --git a/test/integration/transactions.js b/test/integration/transactions.js
index 5bb1342..5358461 100644
--- a/test/integration/transactions.js
+++ b/test/integration/transactions.js
@@ -91,10 +91,9 @@ describe('bitcoinjs-lib (transactions)', function () {
 
       const txb = new bitcoin.TransactionBuilder(regtest)
       const data = Buffer.from('bitcoinjs-lib', 'utf8')
-      const dataScript = require('../../src/templates/nulldata').output.encode([data])
-
+      const embed = bitcoin.payments.embed({ data: [data] })
       txb.addInput(unspent.txId, unspent.vout)
-      txb.addOutput(dataScript, 1000)
+      txb.addOutput(embed.output, 1000)
       txb.addOutput(regtestUtils.RANDOM_ADDRESS, 1e5)
       txb.sign(0, keyPair)
 
diff --git a/test/payments.js b/test/payments.js
index 5722d88..3af6699 100644
--- a/test/payments.js
+++ b/test/payments.js
@@ -3,20 +3,21 @@
 const assert = require('assert')
 const u = require('./payments.utils')
 
-;['p2ms', 'p2pk', 'p2pkh', 'p2sh', 'p2wpkh', 'p2wsh'].forEach(function (p) {
+;['embed', 'p2ms', 'p2pk', 'p2pkh', 'p2sh', 'p2wpkh', 'p2wsh'].forEach(function (p) {
   describe(p, function () {
     const fn = require('../src/payments/' + p)
     const fixtures = require('./fixtures/' + p)
 
     fixtures.valid.forEach(function (f, i) {
-      const args = u.preform(f.arguments)
-
       it(f.description + ' as expected', function () {
+        const args = u.preform(f.arguments)
         const actual = fn(args, f.options)
+
         u.equate(actual, f.expected, f.arguments)
       })
 
       it(f.description + ' as expected (no validation)', function () {
+        const args = u.preform(f.arguments)
         const actual = fn(args, Object.assign({}, f.options, {
           validate: false
         }))
diff --git a/test/payments.utils.js b/test/payments.utils.js
index 22001e9..2dbed3d 100644
--- a/test/payments.utils.js
+++ b/test/payments.utils.js
@@ -7,6 +7,12 @@ function tryHex (x) {
   if (Array.isArray(x)) return x.map(tryHex)
   return x
 }
+
+function fromHex (x) {
+  if (typeof x === 'string') return Buffer.from(x, 'hex')
+  if (Array.isArray(x)) return x.map(fromHex)
+  return x
+}
 function tryASM (x) {
   if (Buffer.isBuffer(x)) return bscript.toASM(x)
   return x
@@ -64,6 +70,7 @@ function equate (a, b, args) {
   if ('n' in b) t.strictEqual(a.n, b.n, 'Inequal *.n')
   if ('pubkeys' in b) t.deepEqual(tryHex(a.pubkeys), tryHex(b.pubkeys), 'Inequal *.pubkeys')
   if ('signatures' in b) t.deepEqual(tryHex(a.signatures), tryHex(b.signatures), 'Inequal *.signatures')
+  if ('data' in b) t.deepEqual(tryHex(a.data), tryHex(b.data), 'Inequal *.data')
 }
 
 function preform (x) {
@@ -80,21 +87,18 @@ function preform (x) {
   }
   if (typeof x.output === 'string') x.output = asmToBuffer(x.output)
   if (typeof x.input === 'string') x.input = asmToBuffer(x.input)
-  if (Array.isArray(x.witness)) {
-    x.witness = x.witness.map(function (y) {
-      return Buffer.from(y, 'hex')
-    })
-  }
+  if (Array.isArray(x.witness)) x.witness = x.witness.map(fromHex)
 
+  if (x.data) x.data = x.data.map(fromHex)
   if (x.hash) x.hash = Buffer.from(x.hash, 'hex')
   if (x.pubkey) x.pubkey = Buffer.from(x.pubkey, 'hex')
   if (x.signature) x.signature = Buffer.from(x.signature, 'hex')
-  if (x.pubkeys) x.pubkeys = x.pubkeys.map(function (y) { return Buffer.from(y, 'hex') })
+  if (x.pubkeys) x.pubkeys = x.pubkeys.map(fromHex)
   if (x.signatures) x.signatures = x.signatures.map(function (y) { return Number.isFinite(y) ? y : Buffer.from(y, 'hex') })
   if (x.redeem) {
     if (typeof x.redeem.input === 'string') x.redeem.input = asmToBuffer(x.redeem.input)
     if (typeof x.redeem.output === 'string') x.redeem.output = asmToBuffer(x.redeem.output)
-    if (Array.isArray(x.redeem.witness)) x.redeem.witness = x.redeem.witness.map(function (y) { return Buffer.from(y, 'hex') })
+    if (Array.isArray(x.redeem.witness)) x.redeem.witness = x.redeem.witness.map(fromHex)
     x.redeem.network = bnetworks[x.redeem.network] || x.network || bnetworks.bitcoin
   }