diff --git a/payjoin-directory/src/db/files.rs b/payjoin-directory/src/db/files.rs
index 3552827ad..4ac022c39 100644
--- a/payjoin-directory/src/db/files.rs
+++ b/payjoin-directory/src/db/files.rs
@@ -37,7 +37,9 @@ struct V2WaitMapEntry {
 
 #[derive(Debug)]
 struct V1WaitMapEntry {
-    payload: Arc<Vec<u8>>,
+    /// The V1 payload. `take()`n after the first read for data minimization —
+    /// plaintext PSBTs should not linger in memory longer than needed.
+    payload: Option<Arc<Vec<u8>>>,
     sender: oneshot::Sender<Vec<u8>>,
 }
 
@@ -325,9 +327,12 @@ impl DbTrait for Db {
 impl Mailboxes {
     async fn read(&mut self, id: &ShortId) -> io::Result<Option<Arc<Vec<u8>>>> {
         // V1 POST requests are only stored in memory since they are
-        // unencrypted. Check this hash table first.
-        if let Some(V1WaitMapEntry { payload, .. }) = self.pending_v1.get(id) {
-            return Ok(Some(payload.clone()));
+        // unencrypted. Check this hash table first. Use take() for data
+        // minimization — clear the plaintext payload after first read.
+        if let Some(entry) = self.pending_v1.get_mut(id) {
+            if let Some(payload) = entry.payload.take() {
+                return Ok(Some(payload));
+            }
         }
 
         // V2 requests are stored on disk
@@ -358,8 +363,11 @@ impl Mailboxes {
             return Err(Error::OverCapacity);
         }
 
-        if self.pending_v1.contains_key(id) {
-            return Err(Error::OverCapacity);
+        if let Some(entry) = self.pending_v1.get(id) {
+            if entry.payload.is_some() {
+                return Err(Error::OverCapacity);
+            }
+            return Err(Error::AlreadyRead);
         }
 
         let receiver = self
@@ -419,13 +427,17 @@ impl Mailboxes {
             let payload = payload.clone();
             let (sender, receiver) = oneshot::channel::<Vec<u8>>();
             ret = Some(receiver);
-            V1WaitMapEntry { payload, sender }
+            V1WaitMapEntry { payload: Some(payload), sender }
         });
 
-        // If there are pending readers, satisfy them and mark the payload as read
+        // If there are pending readers, satisfy them with the payload
+        // and clear the in-memory copy for data minimization
         if let Some(pending) = self.pending_v2.remove(id) {
             trace!("notifying pending readers for {} (v1 fallback)", id);
-            pending.sender.send(payload).expect("sending on oneshot channel must succeed");
+            pending.sender.send(payload.clone()).expect("sending on oneshot channel must succeed");
+            if let Some(entry) = self.pending_v1.get_mut(id) {
+                entry.payload.take();
+            }
         }
 
         Ok(ret)
@@ -568,6 +580,9 @@ pub enum Error {
     /// Operation rejected due to lack of capacity
     OverCapacity,
 
+    /// Indicates receiver already consumed the plaintext V1 request payload
+    AlreadyRead,
+
     /// Indicates the sender that was waiting for the reply is no longer there
     V1SenderUnavailable,
 
@@ -584,6 +599,7 @@ impl From<Error> for super::Error<std::io::Error> {
         match val {
             Error::V1SenderUnavailable => super::Error::V1SenderUnavailable,
             Error::OverCapacity => super::Error::OverCapacity,
+            Error::AlreadyRead => super::Error::AlreadyRead,
             Error::IO(e) => super::Error::Operational(e),
         }
     }
@@ -603,6 +619,7 @@ impl std::fmt::Display for Error {
         use Error::*;
         match self {
             OverCapacity => "Database over capacity".fmt(f),
+            AlreadyRead => "Mailbox payload already read".fmt(f),
             V1SenderUnavailable => "Sender no longer connected".fmt(f),
             IO(e) => write!(f, "Internal Error: {e}"),
         }
@@ -780,7 +797,7 @@ async fn test_v2_wait() -> std::io::Result<()> {
 
     match db.wait_for_v2_payload(&id).await {
         Err(super::Error::Timeout(_)) => {}
-        res => panic!("expected timeout, got {:?}", res),
+        res => panic!("expected timeout, got {res:?}"),
     }
 
     let read_task1 = tokio::spawn({
@@ -870,6 +887,59 @@ async fn test_v1_wait() -> std::io::Result<()> {
     Ok(())
 }
 
+#[tokio::test]
+async fn test_v1_data_minimization() -> std::io::Result<()> {
+    let dir = tempfile::tempdir()?;
+
+    let db = Arc::new(
+        Db::init(Duration::from_millis(500), dir.path().to_owned())
+            .await
+            .expect("initializing mailbox database should succeed"),
+    );
+
+    let id = ShortId([0u8; 8]);
+
+    // Spawn v1 sender in background
+    let v1_sender_task = tokio::spawn({
+        let db = db.clone();
+        async move { db.post_v1_request_and_wait_for_response(&id, b"request".to_vec()).await }
+    });
+
+    // Small delay to let v1 request post
+    tokio::time::sleep(Duration::from_millis(10)).await;
+
+    // First read should return the payload
+    let res = db.wait_for_v2_payload(&id).await.expect("first read should succeed");
+    assert_eq!(&res[..], b"request", "first read should return the payload");
+
+    // Subsequent reads should not return the plaintext payload again.
+    assert!(
+        matches!(db.wait_for_v2_payload(&id).await, Err(super::Error::AlreadyRead)),
+        "subsequent reads should indicate the payload was already consumed"
+    );
+
+    // Verify the payload was cleared from memory by checking directly
+    {
+        let guard = db.mailboxes.lock().await;
+        let entry = guard.pending_v1.get(&id);
+        assert!(
+            entry.is_none_or(|e| e.payload.is_none()),
+            "v1 payload should have been cleared after first read"
+        );
+    }
+
+    // V1 response flow should still work even after payload was cleared
+    db.post_v1_response(&id, b"response".to_vec()).await.expect("posting response should succeed");
+
+    let res = v1_sender_task
+        .await
+        .expect("joining task should succeed")
+        .expect("v1 sender should get response");
+    assert_eq!(&res[..], b"response", "v1 sender should receive the response");
+
+    Ok(())
+}
+
 // Simulate elapsed time deterministically by shifting stored timestamps
 // backward instead of sleeping. tokio::time::pause() can't be used because
 // prune compares against SystemTime (timestamps originate from disk).
diff --git a/payjoin-directory/src/db/mod.rs b/payjoin-directory/src/db/mod.rs
index b4970a532..4adfdb296 100644
--- a/payjoin-directory/src/db/mod.rs
+++ b/payjoin-directory/src/db/mod.rs
@@ -16,6 +16,7 @@ pub enum Error<OperationalError: SendableError> {
     Operational(OperationalError),
     Timeout(tokio::time::error::Elapsed),
     OverCapacity,
+    AlreadyRead,
     V1SenderUnavailable,
 }
 
@@ -33,6 +34,7 @@ impl<E: SendableError> std::fmt::Display for Error<E> {
             Operational(error) => write!(f, "Db error: {error}"),
             Timeout(timeout) => write!(f, "Timeout: {timeout}"),
             OverCapacity => "Database over capacity".fmt(f),
+            AlreadyRead => "Mailbox payload already read".fmt(f),
             V1SenderUnavailable => "Sender no longer connected".fmt(f),
         }
     }
diff --git a/payjoin-directory/src/lib.rs b/payjoin-directory/src/lib.rs
index 97b7eea43..fcb783a3b 100644
--- a/payjoin-directory/src/lib.rs
+++ b/payjoin-directory/src/lib.rs
@@ -453,6 +453,7 @@ fn handle_peek<Error: db::SendableError>(
             db::Error::OverCapacity => Err(HandlerError::ServiceUnavailable(anyhow::Error::msg(
                 "mailbox storage at capacity",
             ))),
+            db::Error::AlreadyRead => Ok(timeout_response),
             db::Error::V1SenderUnavailable => Err(HandlerError::SenderGone(anyhow::Error::msg(
                 "Sender is unavailable try a new request",
             ))),