BTCPay server self-hosted payment processor setup guide
Most payment gateways hold your funds, control the keys, and decide when you get paid. BTCPay Server flips that model. It puts the merchant in full control of keys and funds from the moment a payment is created until settlement.
This guide covers what BTCPay Server is, how to deploy it, connect your Bitcoin node and Lightning node, create a store, and integrate with e-commerce platforms like WooCommerce and Shopify.
What btcpay server is
BTCPay Server is open-source software. You install it on your own server. It replaces custodial gateways such as BitPay or Coinbase Commerce. With BTCPay Server, no third party holds your private keys, and no third party can freeze or delay your funds.
Payments go directly to your wallet. Settlement is immediate on your own node. The merchant sees the transaction on their own blockchain explorer. There is no intermediary.
Deployment Options
You can run BTCPay Server several ways. The easiest is a one-click deployment on a VPS using Docker, and providers like DigitalOcean, Linode or AWS work. You need a domain name and a server with at least 2GB of RAM. For a full node you need more storage: Bitcoin's blockchain requires roughly 500GB, and Lightning Network data adds a few more gigabytes.
An alternative is the BTCPay Server Docker deployment on a local machine. A Raspberry Pi 4 with 4GB RAM can run it, but performance will be slower. For production use, a dedicated VPS is recommended. The deployment script handles SSL certificates, domain configuration and updates, and it takes about 15 minutes start to finish.
Connecting a bitcoin full node
BTCPay Server requires a Bitcoin full node. You can use your own node or connect to an existing one. The software includes a built-in Bitcoin node option. This node validates all transactions. It ensures no payment is accepted unless confirmed on the blockchain. No third party provides block data, and no SPV wallet is used. The merchant's node sees every transaction directly, removing reliance on external APIs that could lie about confirmations.
Connecting a lightning node
For instant payments, connect a Lightning node. BTCPay Server supports LND, c-lightning and Eclair. You can run the Lightning node on the same machine as BTCPay Server. Lightning payments settle in seconds, fees are typically fractions of a cent, and the merchant still controls their own Lightning node. Keys remain on their own hardware.
Creating a Store
Once BTCPay Server is running, you create a store. A store is a payment profile. You set your preferred currency, invoice expiration time, and confirmation requirements. You generate a wallet for the store, which can be a single address or an xpub. BTCPay Server derives new addresses for each invoice, keeping payment tracking clean. The store settings let you choose between on-chain and Lightning payments; you can accept both. The customer sees options based on what you enable.
Integrating with e-commerce platforms
WooCommerce
BTCPay Server has a dedicated WooCommerce plugin. You install it in WordPress, then configure the plugin with your BTCPay Server URL and store API key. Once set, customers see Bitcoin and Lightning as payment options at checkout. WooCommerce sends invoice details to your BTCPay Server, payment status updates automatically, and orders move from pending to completed when the transaction confirms.
Shopify
Shopify integration works through the BTCPay Shopify app. You install the app from the Shopify marketplace, then connect it to your BTCPay Server. The app works like the WooCommerce plugin. Customers see Bitcoin payment at checkout, and Shopify receives order status updates from BTCPay Server.
Point-of-Sale app for physical retail
BTCPay Server includes a point-of-sale app. You set it up as a separate store. The app shows a simple payment screen with item prices. A customer scans a QR code on a tablet or phone, the invoice is created on your server, payment goes directly to your wallet, and the screen updates when the transaction confirms. This works for brick-and-mortar stores. No separate POS hardware is needed. A tablet and a QR code are enough.
Crowdfund app for fundraising
The crowdfund app lets you raise funds. You set a target amount and choose a deadline. The app shows a progress bar. Contributors send Bitcoin or Lightning payments, each contribution is tracked, and funds go directly to your wallet. No platform takes a cut. This is useful for open-source projects, charities, or any fundraising effort. The merchant controls the entire process.
Security and Control
BTCPay Server gives the merchant full control. No third party holds keys, no third party can freeze funds, and no third party can change terms. The merchant runs their own node, verifies every transaction, and chooses when to spend or hold. This self-sovereign model is the core value proposition. Custodial gateways offer convenience. BTCPay Server offers independence.
As of August 31, 2026, the information in this guide reflects the state of BTCPay Server at that time. Deployment methods and integration options may change with future releases.
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