To simplify and speed up payment processing and reduce costs, the Custody feature is now enabled by default for all new accounts on NOWPayments.
That means you don’t have to attach external payout wallets prior to starting to receive payments. Funds can be received directly to your NOWPayments custody balance, helping you save on network fees and simplify setup.
In this guide, we’ll explain:
- how custody works;
- how to choose your main balance currency;
- how additional balances work;
- how to switch between custodial and non-custodial processing.
What Changed
Previously:
- accounts were non-custodial by default;
- partners had to сreate and connect payout wallets before starting accepting payments;
- many merchants were not aware they could reduce network fees by using custody balances.
Now:
- new accounts are custodial by default;
- payments can be received directly to custody balances;
- custody helps merchants save on network fees and simplify payment processing.
This update allows:
- to reduce complexity of setup;
- to simplify onboarding process;
- to save on fees;
- to have more flexibility to manage balances.
How Balances Work
When Custody is enabled:
- Your incoming payments are settled to your NOW Payments balances;
- you can withdraw, convert or pay out with that money in your account.
Instead of sending each payment directly to an external wallet, NOWPayments keeps the funds inside the platform, making for faster and more convenient processing.
Setting Up Your Primary Balance: Two Scenarios
Your Primary balance determines which currency incoming payments will be converted into by default. There are two possible ways of setting it up.
Scenario 1: Choosing Primary balance currency separately
Once you sign up, you can select your Primary balance currency:
Example:
If your Primary balance is USDTTRC20, incoming payments will automatically convert into USDTTRC20 until additional balances are created.
This helps:
• simplify treasury management;
• consolidate incoming payments into your preferred stablecoin;
• reduce exposure to market volatility while improving cost efficiency.
Scenario 2: Creating Your First Balance
If you don’t select a Primary balance currency manually, you can simply create a balance through a top-up inside the Custody section.
During top-up:
- choose the desired currency in the Balance to debit field.
Once funds are received:
- the balance will appear in the Custody section automatically.
Automatic Primary Balance Selection
If:
- no Primary balance currency was selected manually;
- and no balances exist yet,
NOWPayments will automatically use the pay currency of your first created payment as your Primary balance currency.
This helps:
- keep the first payment mono-currency;
- reduce unnecessary conversions;
- additionally optimize service fees for partners.
Managing Multiple Balances
You can create additional balances anytime.
There are two ways to do this:
- top up a balance in the desired currency (use ‘Balance to debit’ field to choose it);;
- or convert funds into the required currency.
Once a balance exists:
- payments in that currency will go directly to this balance;
- other currencies will continue converting into your Primary balance.
Changing Your Primary Balance
Already have multiple balances?
You can change your Primary balance anytime.
To do this:
- Open the Custody section.
- Find the desired balance.
- Click Actions.
- Select Set as Primary.
Switching Back to Non-Custodial Processing
You can switch back to non-custodial processing at any time.
To do this:
- Add a payout wallet in Payout wallets Settings
- Disable custodial processing in Payments Settings
After disabling custodial mode:
- incoming funds will be sent directly to your connected wallet.
Impact on Existing Partners
These changes currently apply only to new accounts which don’t have any payout wallets added.
Existing partners who:
- already have payout wallets connected;
- and already use custodial balances,
will not be affected.
Their current payment processing logic will remain unchanged.
Why We Introduced Default Custody
The goal of default custodial processing is to make NOWPayments:
- easier to set up;
- more flexible for balance management;
- and more cost-efficient for merchants.
With custodial balances, partners can:
- begin accepting payments sooner;
- avoid unnecessary wallet setup;
- save on network fees;
- ease fund management directly inside NOWPayments.
FAQ
Do I still need to connect a payout wallet to start accepting payments?
No. New accounts use custodial balances by default, so you can start accepting payments without connecting external wallets.
Funds will be credited directly to your custody balances inside NOWPayments.
What is the Primary balance currency?
Your Primary balance currency is the main balance used for automatic payment conversions.
If a payment is received in a currency for which you don’t have a balance yet, the funds may automatically convert into your Primary balance currency.
The selected balance will also be marked as Primary in the Custody section.
Where can I select my Primary balance currency?
You can choose your Primary balance currency:
- from the Dashboard;
- or inside the Custody section.
If no Primary balance currency is selected manually, NOWPayments will automatically assign one during your first payment creation.
Can I have multiple balances?
Yes.
You can create additional balances by:
- topping up a balance in the required currency;
- or converting existing funds into another currency.
Payments received in supported currencies will go directly to their corresponding balances.
When does a balance appear in the Custody section?
A balance appears automatically after funds are received on it for the first time.
What happens if I don’t create a Primary balance manually?
If no balances exist yet, the pay currency of your first created payment will automatically become your Primary balance currency.
This helps keep your first payment mono-currency and may help optimize processing fees. You’ll be able to change it anytime once you have additional balances available.
Can I change my Primary balance later?
Yes, if you have several balances, you can change the Primary one any time you like.
Open the Custody section, click Actions near the desired balance, and select Set as Primary.
Can I disable custodial processing?
Yes.
To switch to non-custodial processing:
- Add a payout wallet in Payout wallets Settings
- Disable custodial processing in Payments Settings
After that, incoming funds will be sent directly to your connected wallet.
Will these changes affect existing accounts?
No.
Existing partners who already use payout wallets and custodial balances will continue using their current payment processing logic without changes.
Why is custodial processing enabled by default?
Default custodial processing helps:
- simplify onboarding;
- reduce setup time;
- eliminate unnecessary wallet configuration;
- optimize fees;
- make balance management more convenient.