Our custodial system offers the advantage of saving on network fees for a large number of transactions. Additionally, it enables you to make bulk payout to your users efficiently.
By default, NOWPayments is a non-custodial service. It means that we process payments directly to partners wallets and do not keep funds inside the system.
For example, you can accept 100 payments on the balance and withdraw them in one transaction, paying only one transaction instead of 100 network fees, thus saving on network commissions when working with large volumes.
To withdraw funds from the balance to your personal wallet, no validation is required on our side. The procedure is initiated by you, and upon completion, the funds are immediately transferred to your wallet.
It takes approximately 10 minutes to credit transactions to balances.
The balance will only reflect funds that have passed through our system. If you have added a wallet that already contains funds, but has not yet received any payments through our services, the displayed balance will be 0.
After the first payments are received in an account with activated balances, custody page will display currency, the withdrawal amount, equivalent in USD and a button to initiate the withdrawal. After clicking the button will be displayed the wallet address to which the balance will be withdrawn. The address for withdrawal is the same as the wallet address designated as the 'Payout wallet' in the Payment settings for the specific currency.
To change the wallet address to which payouts are made, you need to update the address in the Payment settings.
Options available with activated custody.
Payout
There is a few options how you can create a payout.
First of all - single payout from custody section
Just hit "request payout button" - you will see an additional pop-up with your wallet address
Second one - few payouts from mass payout section
You can upload pre-issued .csv file (template for it you can find in the same section) or you can manually setup few payouts with "create manually" button.
This is how pop-up window looks like. Up to 5 payouts simultaneously for this method.
And the third one - "create payout" method from our API. You can find more details in our API documentation, and even more - a use cases examples!
Please don't forget about whitelisting flow - you can check information about this procedure in this article.
Mass Payouts
All custody users are automatically connected to the ability to make bulk payouts.
There are three basic ways to create payouts and one non-standard way:
- Uploading a .csv file with a list of payouts and further execution on our side
- Creating payouts via API
- Single payouts via balance withdrawal mechanics.
No service fee is charged for payouts. All you will have to pay for sending is one network fee for each payout.
Two-Factor Authentication
By default, for security reasons, two-factor authentication is set on payouts.
You can validate the payout retroactively in your dashboard, by opening payout details.
When creating a payout, a 2fa code is sent to your e-mail, which you should enter in the opened window, or, if the payment is created via API, set up automatic generation of 2fa codes via corresponding libraries and their timely transfer to the system.
If the payout is not validated with the 2fa code within an hour, it will be automatically rejected by the system.
2fa for payouts can be disabled, but we don't recommend it. We need an official request letter to whitelist@nowpayments.io from your registration email, containing the following request:
I'd like to disable 2fa for withdrawals and accept all risks related to it
Conversions
Conversions are an additional feature of the custody that allows you to exchange coins and tokens within your balances without transferring them outward. For example, to convert all assets from volatile BTC to stable USDT, or to create a payout in a specific coin that is not currently on the balance. The conversion fee is 0.5% (only the service fee is charged, there is no network fee).