All articles
Payment architecture
What is a non-custodial payment gateway?
Learn how direct-to-wallet settlement differs from a provider holding funds before payout.
6 min read
Custody changes the payment relationship
A custodial provider may receive, hold, convert, or later pay out merchant funds. A non-custodial payment gateway coordinates checkout and verifies payment without taking custody of the merchant’s settlement funds.
How SoloPay settlement works
For supported flows, funds move to the merchant-designated wallet after the payer authorizes the transaction. SoloPay records payment status and operational references, but does not control the merchant’s private keys.
The tradeoff
Direct settlement reduces custody exposure and payout dependency. It also means the merchant must secure its wallet, manage access, select the correct network, and define refund procedures.