CoinPayments is a cryptocurrency payment gateway that lets merchants accept over 40 different cryptocurrencies from customers, then receive those funds as crypto or convert them into fiat currency. It works by generating invoices or wallet addresses for each transaction, processing the payment on the blockchain, and routing the funds to the merchant based on their chosen payout settings. Here’s how each piece fits together.
How Payments Get Created
CoinPayments offers two core methods for collecting crypto payments: invoices and wallet addresses.
Invoices are the simpler option. You can create them manually through the CoinPayments dashboard or programmatically through the API. There’s also a “Buy Now” button you can embed directly on your website. When a customer clicks it, CoinPayments automatically generates an invoice and displays a checkout window where the customer sees the amount owed, the crypto address to send to, and a countdown timer to complete the payment. The platform supports fixed-rate invoicing, which locks in the exchange rate at the moment the invoice is created so you receive the amount you actually billed, regardless of price swings during the payment window.
Wallet addresses give you more control. Using the Wallets API, you create a wallet for each cryptocurrency you want to accept, then generate individual addresses within that wallet. You display the address to the customer however you like, and you define the rules: how to present the payment screen, how much crypto constitutes a “completed” payment, and what happens after a successful transaction. This approach is better suited for businesses with custom checkout flows or platforms that need to assign unique deposit addresses to individual users.
What Happens After a Customer Pays
Once a customer sends crypto to the invoice or wallet address, CoinPayments detects the incoming deposit within seconds and begins risk screening before the blockchain even confirms the transaction. The platform’s built-in blockchain intelligence system analyzes each transaction in real time, flagging funds that may be linked to fraud or illicit activity before settlement occurs.
To stay informed about payment status, you can either set up webhook notifications that push updates to your server automatically, or poll the API by requesting the invoice status on demand. Webhooks are the more practical choice for most integrations because they let your system react immediately when a payment is confirmed.
Payout Modes and Settlement
This is where CoinPayments gets flexible. For each cryptocurrency you accept, you choose a payout mode that determines how and when you receive the funds. There are five options:
- To Balance: Payments land in your CoinPayments wallet. You withdraw whenever you want.
- ASAP: Payments are forwarded to an external wallet address you specify as soon as they’re confirmed on the blockchain. You pay a network fee for each individual transfer.
- Nightly: Payments are batched together and sent to your external address once daily, around midnight Eastern time. You pay only one network fee for the entire batch, which can save significantly when processing many transactions.
- To Balance + Convert: Payments are automatically converted into a different cryptocurrency of your choice and stored in your CoinPayments wallet. If a payment is too large to convert at current market volume, you may receive the original currency instead.
- ASAP + Convert: Payments are converted to your chosen cryptocurrency and immediately forwarded to an external address. The same volume caveat applies.
You configure these settings per coin in the Coin Settings tab of your dashboard. A merchant accepting Bitcoin, Ethereum, and Litecoin could set Bitcoin to Nightly, Ethereum to ASAP + Convert into stablecoins, and Litecoin to To Balance, all independently.
Fiat Conversion and Bank Payouts
If you don’t want to hold crypto at all, CoinPayments integrates with fiat settlement partners that convert incoming crypto payments into traditional currencies like USD, EUR, CNY, and AUD in real time. The platform also supports card-based payments through trusted partners, letting customers pay with a credit card while you receive digital assets or fiat, depending on your setup.
There’s also an Auto-Sweep feature. Once enabled for a specific coin, it monitors your balance and automatically converts or forwards your holdings when they exceed a minimum threshold you set. This is useful for merchants who want to regularly clear their crypto balances without manually initiating withdrawals.
Fees
CoinPayments charges a 0.5% fee on payments deposited to your wallet balance. If you use ASAP or Nightly forwarding, the fee is 0.5% plus the blockchain network fee. Token payments carry a 1% processing fee. Businesses in high-risk industries may see adjusted rates.
Deposits to your personal wallet are free for the first $15,000 per month, with a 0.5% fee on volume above that. The counter resets on the first of each month. Conversions between cryptocurrencies cost whatever the conversion partner charges, plus the network fee. CoinPayments itself does not charge withdrawal fees, but you still pay the blockchain network fee required to move crypto on-chain. Those network fees fluctuate based on how congested the blockchain is at the time. The Nightly batching mode helps here by consolidating multiple outgoing transfers into a single on-chain transaction.
Integration for Online Stores
For merchants running e-commerce sites, CoinPayments provides a REST API with endpoints for creating invoices, canceling them, checking payment status, and managing wallets and addresses. The Buy Now button is the lightest integration: you embed a static HTML element, and CoinPayments handles the rest. For deeper integration, the API lets you build fully custom checkout experiences, assign unique addresses per order, and automate your accounting workflow through webhook callbacks.
CoinPayments also offers a Telegram Payment Bot that lets you accept both crypto and credit card payments directly within Telegram groups, which is useful for community-based businesses, content creators, or subscription services running through the messaging platform.
Account Verification
You can set up a basic CoinPayments account quickly, but full functionality requires identity verification (KYC). Without it, your account will have transaction limits, and you won’t be able to use cryptocurrency conversions or fiat settlements.
The verification process is done on individuals, not businesses. You’ll need to provide a government-issued ID (passport, driver’s license, national ID card, or residence permit), upload front and back images, take a live selfie, submit a proof of residence document, provide your phone number, and fill out a customer application form. The process is handled through the dashboard after you log in.
Security Features
CoinPayments uses multi-party computation (MPC) for its node infrastructure, which means private keys are never stored in a single location or exposed in full, even during transaction signing. Each transaction requires authorization from multiple independent nodes working together, eliminating single points of failure. The platform also offers multi-signature custody for enterprise accounts and states that custodial arrangements may include insurance coverage for stored merchant funds.
The multi-user account delegation system lets businesses give team members access to the merchant account with specific permissions, so you can let an employee process refunds without giving them withdrawal rights. Combined with real-time transaction monitoring and pre-settlement risk screening, the platform is built to handle the security demands of businesses processing significant crypto volume.