diff --git a/packages/api-contract/src/Abi/Abi.spec.ts b/packages/api-contract/src/Abi/Abi.spec.ts
index 514c37b41e..d9a9d0840a 100644
--- a/packages/api-contract/src/Abi/Abi.spec.ts
+++ b/packages/api-contract/src/Abi/Abi.spec.ts
@@ -32,6 +32,9 @@ interface JSONAbi {
   },
   V2: {
     spec: SpecDef;
+  },
+  V3: {
+    spec: SpecDef;
   }
 }
 
@@ -56,7 +59,7 @@ describe('Abi', (): void => {
 
       it(`initializes from a contract ABI (${abiName})`, (): void => {
         try {
-          const messageIds = (abi.V2 || abi.V1 || abi).spec.messages.map(({ label, name }) =>
+          const messageIds = (abi.V3 || abi.V2 || abi.V1 || abi).spec.messages.map(({ label, name }) =>
             label || (
               Array.isArray(name)
                 ? name[0]
diff --git a/packages/api-contract/src/Abi/toLatest.spec.ts b/packages/api-contract/src/Abi/toLatest.spec.ts
index 8be2005ba7..ddde59c1b8 100644
--- a/packages/api-contract/src/Abi/toLatest.spec.ts
+++ b/packages/api-contract/src/Abi/toLatest.spec.ts
@@ -1,7 +1,7 @@
 // Copyright 2017-2022 @polkadot/api-contract authors & contributors
 // SPDX-License-Identifier: Apache-2.0
 
-import { v0ToLatest, v1ToLatest, v2ToLatest } from '@polkadot/api-contract/Abi/toLatest';
+import { v0ToLatest, v1ToLatest, v2ToLatest, v3ToLatest } from '@polkadot/api-contract/Abi/toLatest';
 import { TypeRegistry } from '@polkadot/types';
 
 import abis from '../test/contracts';
@@ -83,3 +83,18 @@ describe('v2ToLatest', (): void => {
     ).toEqual(true);
   });
 });
+
+describe('v3ToLatest', (): void => {
+  const registry = new TypeRegistry();
+  const contract = registry.createType('ContractMetadata', { V3: abis.ink_v3_flipper.V3 });
+  const latest = v3ToLatest(registry, contract.asV3);
+
+  it('has the correct constructor flags', (): void => {
+    expect(
+      latest.spec.constructors[0].payable.isTrue
+    ).toEqual(false);
+    expect(
+      latest.spec.constructors[1].payable.isTrue
+    ).toEqual(true);
+  });
+});
diff --git a/packages/api-contract/src/test/compare/ink_v3_flipper.test.json b/packages/api-contract/src/test/compare/ink_v3_flipper.test.json
new file mode 100644
index 0000000000..e7e9211fa2
--- /dev/null
+++ b/packages/api-contract/src/test/compare/ink_v3_flipper.test.json
@@ -0,0 +1,9 @@
+[
+  {
+    "info": "Plain",
+    "lookupIndex": 0,
+    "type": "bool",
+    "docs": [],
+    "namespace": ""
+  }
+]
\ No newline at end of file
diff --git a/packages/api-contract/src/test/contracts/ink/index.ts b/packages/api-contract/src/test/contracts/ink/index.ts
index c258083a69..2b3b947232 100644
--- a/packages/api-contract/src/test/contracts/ink/index.ts
+++ b/packages/api-contract/src/test/contracts/ink/index.ts
@@ -5,5 +5,6 @@ import { createVersionedExport } from '../util';
 import * as v0 from './v0';
 import * as v1 from './v1';
 import * as v2 from './v2';
+import * as v3 from './v3';
 
-export default createVersionedExport({ v0, v1, v2 });
+export default createVersionedExport({ v0, v1, v2, v3 });
diff --git a/packages/api-contract/src/test/contracts/ink/v3/flipper.contract.json b/packages/api-contract/src/test/contracts/ink/v3/flipper.contract.json
new file mode 100644
index 0000000000..ac88e6253d
--- /dev/null
+++ b/packages/api-contract/src/test/contracts/ink/v3/flipper.contract.json
@@ -0,0 +1,105 @@
+{
+  "source": {
+    "hash": "0xbb381c2fc980121b17c7b2bf2756d5964a12151cb846e0a9eff9cc337806456d",
+    "language": "ink! 3.0.0-rc7",
+    "compiler": "rustc 1.60.0-nightly",
+    "wasm": "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"
+  },
+  "contract": {
+    "name": "flipper",
+    "version": "3.0.0-rc7",
+    "authors": [
+      "Parity Technologies <admin@parity.io>"
+    ]
+  },
+  "V3": {
+    "spec": {
+      "constructors": [
+        {
+          "args": [
+            {
+              "label": "init_value",
+              "type": {
+                "displayName": [
+                  "bool"
+                ],
+                "type": 0
+              }
+            }
+          ],
+          "docs": [
+            "Creates a new flipper smart contract initialized with the given value."
+          ],
+          "label": "new",
+          "payable": false,
+          "selector": "0x9bae9d5e"
+        },
+        {
+          "args": [],
+          "docs": [
+            "Creates a new flipper smart contract initialized to `false`."
+          ],
+          "label": "default",
+          "payable": true,
+          "selector": "0xed4b9d1b"
+        }
+      ],
+      "docs": [],
+      "events": [],
+      "messages": [
+        {
+          "args": [],
+          "docs": [
+            " Flips the current value of the Flipper's boolean."
+          ],
+          "label": "flip",
+          "mutates": true,
+          "payable": false,
+          "returnType": null,
+          "selector": "0x633aa551"
+        },
+        {
+          "args": [],
+          "docs": [
+            " Returns the current value of the Flipper's boolean."
+          ],
+          "label": "get",
+          "mutates": false,
+          "payable": false,
+          "returnType": {
+            "displayName": [
+              "bool"
+            ],
+            "type": 0
+          },
+          "selector": "0x2f865bd9"
+        }
+      ]
+    },
+    "storage": {
+      "struct": {
+        "fields": [
+          {
+            "layout": {
+              "cell": {
+                "key": "0x0000000000000000000000000000000000000000000000000000000000000000",
+                "ty": 0
+              }
+            },
+            "name": "value"
+          }
+        ]
+      }
+    },
+    "types": [
+      {
+        "id": 0,
+        "type": {
+          "def": {
+            "primitive": "bool"
+          }
+        }
+      }
+    ]
+  }
+}
diff --git a/packages/api-contract/src/test/contracts/ink/v3/index.ts b/packages/api-contract/src/test/contracts/ink/v3/index.ts
new file mode 100644
index 0000000000..0ae845f277
--- /dev/null
+++ b/packages/api-contract/src/test/contracts/ink/v3/index.ts
@@ -0,0 +1,4 @@
+// Copyright 2017-2022 @polkadot/api-contract authors & contributors
+// SPDX-License-Identifier: Apache-2.0
+
+export { default as flipper } from './flipper.contract.json';