Nagad Payment Gateway Integration in Bangladesh: API Documentation, Charges & Developer Setup (2026)

With over 90 million registered subscribers across Bangladesh, Nagad (the digital financial service of Bangladesh Post Office) has become an indispensable checkout method for modern digital commerce.

For e-commerce store owners and software developers, integrating the Nagad Payment Gateway API offers significant commercial advantages:

• Lower Merchant Commission: Nagad offers competitive merchant discount rates (typically 1.2% to 1.5%, compared to 1.5% to 1.85% for competitors).
• Universal Population Reach: Extensive adoption across Tier-2 and Tier-3 districts, semi-urban markets, and government stipend recipients.
• Direct Bank Settlement: Automated T+1 business day settlements directly into your verified commercial bank account.

However, from an engineering perspective, Nagad's API employs a strict Public/Private Key RSA Cryptography Architecture that trips up many junior developers.

At ArtX, our software engineers have integrated secure payment gateways across hundreds of enterprise portals and e-commerce stores. Here is the definitive technical guide to integrating Nagad Payment Gateway in 2026.

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Quick Answer: How Do You Integrate Nagad Payment Gateway in Bangladesh?

The Short Answer: Integrating the Nagad Payment Gateway API involves five core steps:

1. Obtain Merchant Credentials: Apply with your verified Trade License, TIN, NID, and Bank Statement to receive your Merchant ID, PG Public Key, and Merchant Private Key.
2. Generate Cryptographic Payload: Encrypt request timestamps and order parameters using RSA encryption (SHA-256) with Nagad's Public Key, while signing the payload with your Merchant Private Key.
3. Initialize Transaction: Send a POST request to https://api.mynagad.com/api/dfs/check-out/initialize/{merchantId}/{orderId} to retrieve a secure paymentReferenceId and checkout redirection URL.
4. Handle Customer Redirect & Callback: The customer enters their Nagad PIN and OTP on the official Nagad payment page. Nagad redirects back to your callback URL with status parameters.
5. Verify Payment Status: Execute a server-to-server verification query to confirm funds have been transferred before marking the order as "Processing" or "Completed" in your database.

Explore our e-commerce engineering services on our Web Development Hub and review our payment systems on our Work Page.

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Nagad Payment Gateway: Operational & Fee Structure

| Parameter | Nagad Payment Gateway Standard | Notes / Comparison | |---|---|---| | Merchant Commission Rate | 1.2% – 1.5% | Among the lowest MFS merchant rates in BD | | Setup / Onboarding Fee | ৳0 BDT (Direct Nagad) / ৳5k–৳10k via Aggregators | Direct API application carries no setup fee | | Settlement Timeline | T+1 Business Day (Sunday–Thursday) | Direct BEFTN / NPSB transfer to corporate bank | | Security Mechanism | Asymmetric RSA PKCS#1 v1.5 / SHA-256 | High-grade financial cryptographic validation | | Supported Currencies | BDT (Bangladeshi Taka) | Primary domestic settlement currency | | Refund API Support | Supported via Portal / Automated Refund API | Enables instant customer reversal handling |

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Step-by-Step Developer Implementation Guide

Step 1: RSA Key Generation

Nagad requires OpenSSL key generation:

# Generate 2048-bit Merchant Private Key
openssl genrsa -out merchant_private_key.pem 2048

# Extract Merchant Public Key to submit to Nagad
openssl rsa -in merchant_private_key.pem -pubout -out merchant_public_key.pem

Submit merchant_public_key.pem to the Nagad merchant onboarding team. In return, they will provide you with nagad_pg_public_key.pem and your unique merchantId.

Step 2: Payment Initialization Payload (Node.js Implementation)

The checkout initialization requires encrypted sensitive fields:

import crypto from 'crypto';
import axios from 'axios';

const MERCHANT_ID = process.env.NAGAD_MERCHANT_ID;
const MERCHANT_PRIVATE_KEY = process.env.NAGAD_PRIVATE_KEY;
const NAGAD_PUBLIC_KEY = process.env.NAGAD_PUBLIC_KEY;

// Helper: Encrypt with Nagad Public Key
function encryptWithPublicKey(data) {
  return crypto.publicEncrypt(
    {
      key: NAGAD_PUBLIC_KEY,
      padding: crypto.constants.RSA_PKCS1_PADDING,
    },
    Buffer.from(JSON.stringify(data))
  ).toString('base64');
}

// Helper: Sign with Merchant Private Key
function signWithPrivateKey(data) {
  const sign = crypto.createSign('SHA256');
  sign.update(JSON.stringify(data));
  sign.end();
  return sign.sign(MERCHANT_PRIVATE_KEY, 'base64');
}

export async function initiateNagadPayment(orderId, amount, callbackUrl) {
  const dateTime = new Date().toISOString().replace(/[-:T.Z]/g, '').slice(0, 14);
  
  const sensitiveData = {
    merchantId: MERCHANT_ID,
    datetime: dateTime,
    orderId: orderId,
    challenge: crypto.randomBytes(20).toString('hex')
  };

  const postData = {
    dateTime: dateTime,
    sensitiveData: encryptWithPublicKey(sensitiveData),
    signature: signWithPrivateKey(sensitiveData)
  };

  const response = await axios.post(
    `https://api.mynagad.com/api/dfs/check-out/initialize/${MERCHANT_ID}/${orderId}`,
    postData,
    {
      headers: {
        'Content-Type': 'application/json',
        'X-KM-Api-Version': 'v-0.2.0',
        'X-KM-IP-V4': 'YOUR_SERVER_IP',
        'X-KM-Client-Type': 'PC_WEB'
      }
    }
  );

  return response.data; // Contains paymentReferenceId and redirect URL
}

Step 3: Server-to-Server Verification (Crucial Security Check)

Never mark an order as paid simply because a user returned to your callback URL with status=success in the query string. Attackers can forge browser redirects.

Always execute a backend GET request to verify the transaction status:

GET https://api.mynagad.com/api/dfs/verify/payment/{paymentRefId}

Only when the verified JSON response contains "status": "Success" should your database update the order state.

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বাংলা সংস্করণ: নগদ পেমেন্ট গেটওয়ে বাংলাদেশ: এপিআই ও মার্চেন্ট অ্যাকাউন্ট গাইড (২০২৬)

কেন আপনার ওয়েবসাইটে নগদ পেমেন্ট গেটওয়ে যুক্ত করবেন?

বাংলাদেশে বর্তমানে ৯ কোটিরও বেশি মানুষ নগদ (Nagad) ব্যবহার করছেন। বিশেষ করে সরকারি ভাতা, উপবৃত্তি এবং দেশের প্রত্যন্ত অঞ্চলের বিশাল জনগোষ্ঠীর কাছে নগদ অত্যন্ত জনপ্রিয়।

নগদের প্রধান সুবিধাসমূহ:

১. কম মার্চেন্ট ফি: অন্যান্য মোবাইল ব্যাংকিংয়ের তুলনায় নগদের চার্জ সাধারণত কম (১.২% থেকে ১.৫%)। ২. সহজ ব্যাংক সেটেলমেন্ট: প্রতিদিনের বিক্রির টাকা পরবর্তী কার্যদিবসে সরাসরি আপনার ব্যাংক অ্যাকাউন্টে জমা হয়ে যায়। ৩. নিরাপদ চেকআউট: আরএসএ এনক্রিপশনের মাধ্যমে শতভাগ নিরাপদ লেনদেন সম্পন্ন হয়।

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নগদ মার্চেন্ট অ্যাকাউন্ট খোলার প্রয়োজনীয় কাগজপত্র:

১. হালনাগাদ ট্রেড লাইসেন্স (Trade License) ২. কোম্পানির ই-টিন (TIN Certificate) ৩. ব্যবসায়িক ব্যাংক অ্যাকাউন্ট স্টেটমেন্ট ও চেকের কপি ৪. উদ্যোক্তার জাতীয় পরিচয়পত্র (NID) ও পাসপোর্ট সাইজ ছবি

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ওয়ার্ডপ্রেস (WooCommerce) সাইটে নগদ কীভাবে যুক্ত করবেন?

আপনার ওয়েবসাইট যদি ওয়ার্ডপ্রেস দিয়ে তৈরি হয়, তবে কোডিং ছাড়াও অফিসিয়াল Nagad WooCommerce Plugin অথবা SSLCommerz / Shurjopay এগ্রিগেটরের মাধ্যমে মাত্র ১০ মিনিটে নগদ পেমেন্ট গেটওয়ে সেটআপ করা যায়।

ArtX-এর ইঞ্জিনিয়ারিং টিম কাস্টম ওয়েবসাইট বা ওয়ার্ডপ্রেস স্টোরে নগদ পেমেন্ট গেটওয়ে সম্পূর্ণ সিকিউরভাবে ইন্টিগ্রেশনের দায়িত্ব নিয়ে থাকে। বিস্তারিত জানতে আমাদের Web Development Services দেখুন।

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Frequently Asked Questions (FAQ)

What is the merchant fee for Nagad Payment Gateway in Bangladesh?

Direct Nagad merchant rates typically range between 1.2% to 1.5% for domestic transactions, making it one of the most cost-effective MFS options in Bangladesh.

Can individuals without a trade license integrate the Nagad Payment Gateway API?

No. An official automated Nagad Payment Gateway API requires a registered legal business entity with a valid Trade License and business bank account. Unregistered individuals must rely on manual Personal/Agent bKash/Nagad transactions or use third-party micro-merchant solutions.

Does ArtX handle the complete Nagad API integration for e-commerce websites?

Yes! ArtX provides turnkey payment gateway integrations for Nagad, bKash, Rocket, and international credit cards for both WooCommerce and custom React/Node.js platforms. Contact our team via our Pricing Page.

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Integrate Nagad with ArtX Today

• Lead Integration Engineer: Marcus Webb
• Creative Director: Muhammad Tarek (MD Tarek)
• WhatsApp: +8801645441584
• Email: artxstudiocom@gmail.com
• Website: https://artxdev.tech

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