diff --git a/server/src/app.ts b/server/src/app.ts
index f4a31fd..4066612 100644
--- a/server/src/app.ts
+++ b/server/src/app.ts
@@ -7,12 +7,14 @@ import { queueRouter } from './routes/queue.js'
 import { authRouter } from './routes/auth.js'
 import { docsRouter } from './routes/docs.js'
 import { betsRouter } from './routes/bets.js'
+import { paymentsRouter } from './routes/payments.js'
 import { rateLimit } from './middleware/rate-limit.js'
 
 import { existsSync, readFileSync } from 'fs'
 import { join, dirname } from 'path'
 import { fileURLToPath } from 'url'
 import { cleanupOrphanedFights } from './engine/orchestrator.js'
+import { recoverOrphanedPayments } from './engine/payments.js'
 
 export const app = new Hono()
 
@@ -37,6 +39,7 @@ app.route('/api/fights', fightsRouter)
 app.route('/api/queue', queueRouter)
 app.route('/api/docs', docsRouter)
 app.route('/api/bets', betsRouter)
+app.route('/api/payments', paymentsRouter)
 
 // In production, serve the frontend SPA
 const __dirname = dirname(fileURLToPath(import.meta.url))
@@ -107,3 +110,8 @@ cleanupOrphanedFights().then(() => {
 }).catch(err => {
   console.error('[botfights] cleanup error:', err)
 })
+
+// Recover orphaned payments on startup
+recoverOrphanedPayments().catch(err => {
+  console.error('[botfights] payment recovery error:', err)
+})
diff --git a/server/src/routes/payments.ts b/server/src/routes/payments.ts
new file mode 100644
index 0000000..f655483
--- /dev/null
+++ b/server/src/routes/payments.ts
@@ -0,0 +1,215 @@
+import { Hono } from 'hono'
+import { nanoid } from 'nanoid'
+import { db, schema } from '../db/index.js'
+import { eq } from 'drizzle-orm'
+import { createEntryInvoice, checkPaymentStatus, redeemCashuToken } from '../engine/payments.js'
+import { createCipheriv, createDecipheriv, randomBytes, scryptSync } from 'crypto'
+
+export const paymentsRouter = new Hono()
+
+// Encryption for wallet connection data
+const ENCRYPTION_KEY_HEX = process.env.BOTFIGHTS_WALLET_ENCRYPTION_KEY
+let encryptionKey: Buffer
+
+if (ENCRYPTION_KEY_HEX) {
+  encryptionKey = Buffer.from(ENCRYPTION_KEY_HEX, 'hex')
+} else {
+  encryptionKey = randomBytes(32)
+  console.warn('[payments] WARNING: No BOTFIGHTS_WALLET_ENCRYPTION_KEY set. Generated random key — wallet data will be lost on restart.')
+}
+
+function encrypt(plaintext: string): string {
+  const iv = randomBytes(16)
+  const cipher = createCipheriv('aes-256-gcm', encryptionKey, iv)
+  const encrypted = Buffer.concat([cipher.update(plaintext, 'utf8'), cipher.final()])
+  const authTag = cipher.getAuthTag()
+  return iv.toString('hex') + ':' + authTag.toString('hex') + ':' + encrypted.toString('hex')
+}
+
+function decrypt(ciphertext: string): string {
+  const [ivHex, authTagHex, encryptedHex] = ciphertext.split(':')
+  const iv = Buffer.from(ivHex, 'hex')
+  const authTag = Buffer.from(authTagHex, 'hex')
+  const encrypted = Buffer.from(encryptedHex, 'hex')
+  const decipher = createDecipheriv('aes-256-gcm', encryptionKey, iv)
+  decipher.setAuthTag(authTag)
+  return decipher.update(encrypted) + decipher.final('utf8')
+}
+
+// POST /connect-wallet
+paymentsRouter.post('/connect-wallet', async (c) => {
+  const { pubkey, method, connectionData } = await c.req.json<{
+    pubkey: string
+    method: 'nwc' | 'lnaddress' | 'cashu_mint'
+    connectionData: string
+  }>()
+
+  if (!pubkey || !method || !connectionData) {
+    return c.json({ error: 'Missing pubkey, method, or connectionData' }, 400)
+  }
+
+  // Look up bot by publicKey
+  const botRows = await db.select({ id: schema.bots.id })
+    .from(schema.bots)
+    .where(eq(schema.bots.publicKey, pubkey))
+    .limit(1)
+
+  if (botRows.length === 0) {
+    return c.json({ error: 'Bot not found for this public key' }, 404)
+  }
+
+  const botId = botRows[0].id
+  const encryptedData = encrypt(connectionData)
+  const now = new Date().toISOString()
+
+  // Upsert wallet connection
+  const existing = await db.select({ id: schema.walletConnections.id })
+    .from(schema.walletConnections)
+    .where(eq(schema.walletConnections.botId, botId))
+    .limit(1)
+
+  if (existing.length > 0) {
+    await db.update(schema.walletConnections).set({
+      method,
+      connectionData: encryptedData,
+      lastUsedAt: now,
+    }).where(eq(schema.walletConnections.botId, botId))
+  } else {
+    await db.insert(schema.walletConnections).values({
+      id: nanoid(12),
+      botId,
+      method,
+      connectionData: encryptedData,
+      createdAt: now,
+    })
+  }
+
+  await db.update(schema.bots).set({ hasWallet: true }).where(eq(schema.bots.id, botId))
+
+  return c.json({ success: true })
+})
+
+// GET /wallet-status
+paymentsRouter.get('/wallet-status', async (c) => {
+  const pubkey = c.req.query('pubkey')
+  if (!pubkey) return c.json({ connected: false, method: null })
+
+  const botRows = await db.select({ id: schema.bots.id })
+    .from(schema.bots)
+    .where(eq(schema.bots.publicKey, pubkey))
+    .limit(1)
+
+  if (botRows.length === 0) return c.json({ connected: false, method: null })
+
+  const walletRows = await db.select({ method: schema.walletConnections.method })
+    .from(schema.walletConnections)
+    .where(eq(schema.walletConnections.botId, botRows[0].id))
+    .limit(1)
+
+  if (walletRows.length === 0) return c.json({ connected: false, method: null })
+
+  return c.json({ connected: true, method: walletRows[0].method })
+})
+
+// POST /create-invoice
+paymentsRouter.post('/create-invoice', async (c) => {
+  const { botId } = await c.req.json<{ botId: string }>()
+  if (!botId) return c.json({ error: 'Missing botId' }, 400)
+
+  try {
+    const result = await createEntryInvoice(botId)
+    return c.json(result)
+  } catch (err) {
+    const message = err instanceof Error ? err.message : 'Invoice creation failed'
+    return c.json({ error: message }, 500)
+  }
+})
+
+// GET /check/:paymentId
+paymentsRouter.get('/check/:paymentId', async (c) => {
+  const paymentId = c.req.param('paymentId')
+  try {
+    const status = await checkPaymentStatus(paymentId)
+    return c.json({ status })
+  } catch (err) {
+    const message = err instanceof Error ? err.message : 'Status check failed'
+    return c.json({ error: message }, 500)
+  }
+})
+
+// POST /submit-cashu
+paymentsRouter.post('/submit-cashu', async (c) => {
+  const { botId, token } = await c.req.json<{ botId: string; token: string }>()
+  if (!botId || !token) return c.json({ error: 'Missing botId or token' }, 400)
+
+  try {
+    const result = await redeemCashuToken(token, botId)
+    return c.json({
+      paymentId: result.paymentId,
+      status: result.valid ? 'confirmed' : 'failed',
+    })
+  } catch (err) {
+    const message = err instanceof Error ? err.message : 'Cashu redemption failed'
+    return c.json({ error: message }, 500)
+  }
+})
+
+// GET /winnings/:botId
+paymentsRouter.get('/winnings/:botId', async (c) => {
+  const botId = c.req.param('botId')
+
+  const unclaimed = await db.select({
+    paymentId: schema.payments.id,
+    cashuToken: schema.payments.cashuToken,
+    amountSats: schema.payments.amountSats,
+  }).from(schema.payments)
+    .where(eq(schema.payments.botId, botId))
+
+  // Filter in JS since drizzle doesn't easily combine multiple conditions
+  const filtered = unclaimed.filter(p => p.cashuToken)
+
+  return c.json({ unclaimed: filtered })
+})
+
+// POST /claim/:paymentId
+paymentsRouter.post('/claim/:paymentId', async (c) => {
+  const paymentId = c.req.param('paymentId')
+
+  const rows = await db.select().from(schema.payments)
+    .where(eq(schema.payments.id, paymentId))
+    .limit(1)
+
+  if (rows.length === 0) return c.json({ error: 'Payment not found' }, 404)
+
+  const payment = rows[0]
+  if (!payment.cashuToken) return c.json({ error: 'No Cashu token to claim' }, 400)
+
+  // Clear the token from DB after claiming
+  await db.update(schema.payments).set({ cashuToken: null })
+    .where(eq(schema.payments.id, paymentId))
+
+  return c.json({ cashuToken: payment.cashuToken })
+})
+
+// DELETE /disconnect-wallet
+paymentsRouter.delete('/disconnect-wallet', async (c) => {
+  const { pubkey } = await c.req.json<{ pubkey: string }>()
+  if (!pubkey) return c.json({ error: 'Missing pubkey' }, 400)
+
+  const botRows = await db.select({ id: schema.bots.id })
+    .from(schema.bots)
+    .where(eq(schema.bots.publicKey, pubkey))
+    .limit(1)
+
+  if (botRows.length === 0) return c.json({ error: 'Bot not found' }, 404)
+
+  const botId = botRows[0].id
+
+  await db.delete(schema.walletConnections)
+    .where(eq(schema.walletConnections.botId, botId))
+
+  await db.update(schema.bots).set({ hasWallet: false })
+    .where(eq(schema.bots.id, botId))
+
+  return c.json({ success: true })
+})
diff --git a/server/src/routes/queue.ts b/server/src/routes/queue.ts
index 9e1e6d3..d11bd1f 100644
--- a/server/src/routes/queue.ts
+++ b/server/src/routes/queue.ts
@@ -2,6 +2,7 @@ import { Hono } from 'hono'
 import { db, schema } from '../db/index.js'
 import { eq } from 'drizzle-orm'
 import { joinQueue, leaveQueue, getQueueSize, getQueueSnapshot } from '../engine/queue.js'
+import { joinRankedQueue, getRankedQueueStatus } from '../engine/ranked-queue.js'
 
 export const queueRouter = new Hono()
 
@@ -41,3 +42,26 @@ queueRouter.post('/leave/:botId', (c) => {
   const left = leaveQueue(botId)
   return c.json({ left })
 })
+
+// Get ranked queue status
+queueRouter.get('/ranked-status', (c) => {
+  return c.json(getRankedQueueStatus())
+})
+
+// Join ranked queue — requires confirmed payment
+queueRouter.post('/join-ranked/:botId', async (c) => {
+  const botId = c.req.param('botId')
+  const { paymentId } = await c.req.json<{ paymentId: string }>()
+
+  if (!paymentId) {
+    return c.json({ error: 'Missing paymentId' }, 400)
+  }
+
+  try {
+    const fightId = await joinRankedQueue(botId, paymentId)
+    return c.json({ fightId, message: 'Ranked match found! Fight starting.' })
+  } catch (err) {
+    const message = err instanceof Error ? err.message : 'Ranked queue error'
+    return c.json({ error: message }, 500)
+  }
+})