diff --git a/src/modules/cart/controllers/cart.controller.ts b/src/modules/cart/controllers/cart.controller.ts
index 70156d9..6bb1509 100644
--- a/src/modules/cart/controllers/cart.controller.ts
+++ b/src/modules/cart/controllers/cart.controller.ts
@@ -4,6 +4,7 @@ import { AddItemToCartDto } from '../dto/add-item.dto';
 import { UpdateItemQuantityDto } from '../dto/update-item.dto';
 import { ApplyCouponDto } from '../dto/apply-coupon.dto';
 import { SetAddressDto } from '../dto/set-address.dto';
+import { SetPaymentMethodDto } from '../dto/set-payment-method.dto';
 import { ApiTags, ApiOperation, ApiResponse, ApiBearerAuth, ApiBody, ApiParam } from '@nestjs/swagger';
 import { AuthGuard } from '../../auth/guards/auth.guard';
 import { UserId } from 'src/common/decorators/user-id.decorator';
@@ -84,4 +85,18 @@ export class CartController {
   async setAddress(@UserId() userId: string, @RestId() restaurantId: string, @Body() setAddressDto: SetAddressDto) {
     return this.cartService.setAddress(userId, restaurantId, setAddressDto);
   }
+
+  @Patch('payment-method')
+  @ApiOperation({ summary: 'Set payment method for cart' })
+  @ApiBody({ type: SetPaymentMethodDto })
+  @ApiResponse({ status: 200, description: 'Payment method set successfully' })
+  @ApiResponse({ status: 400, description: 'Bad request (e.g., payment method is not active)' })
+  @ApiResponse({ status: 404, description: 'Payment method not found for restaurant' })
+  async setPaymentMethod(
+    @UserId() userId: string,
+    @RestId() restaurantId: string,
+    @Body() setPaymentMethodDto: SetPaymentMethodDto,
+  ) {
+    return this.cartService.setPaymentMethod(userId, restaurantId, setPaymentMethodDto);
+  }
 }
diff --git a/src/modules/cart/dto/set-payment-method.dto.ts b/src/modules/cart/dto/set-payment-method.dto.ts
new file mode 100644
index 0000000..2b4d262
--- /dev/null
+++ b/src/modules/cart/dto/set-payment-method.dto.ts
@@ -0,0 +1,10 @@
+import { ApiProperty } from '@nestjs/swagger';
+import { IsNotEmpty, IsString } from 'class-validator';
+
+export class SetPaymentMethodDto {
+  @ApiProperty({ description: 'Payment method ID', example: '01ARZ3NDEKTSV4RRFFQ69G5FAV' })
+  @IsNotEmpty()
+  @IsString()
+  paymentMethodId!: string;
+}
+
diff --git a/src/modules/cart/interfaces/cart.interface.ts b/src/modules/cart/interfaces/cart.interface.ts
index 602fc67..a431a8f 100644
--- a/src/modules/cart/interfaces/cart.interface.ts
+++ b/src/modules/cart/interfaces/cart.interface.ts
@@ -21,6 +21,8 @@ export interface Cart {
   items: CartItem[];
   coupon?: CartCoupon;
   addressId?: string;
+  paymentMethodId?: string;
+  paymentMethodFee: number;
   totalPrice: number;
   totalDiscount: number;
   couponDiscount: number;
diff --git a/src/modules/cart/providers/cart.service.ts b/src/modules/cart/providers/cart.service.ts
index 70c4816..2af7fcf 100644
--- a/src/modules/cart/providers/cart.service.ts
+++ b/src/modules/cart/providers/cart.service.ts
@@ -8,10 +8,11 @@ import { AddItemToCartDto } from '../dto/add-item.dto';
 import { UpdateItemQuantityDto } from '../dto/update-item.dto';
 import { ApplyCouponDto } from '../dto/apply-coupon.dto';
 import { SetAddressDto } from '../dto/set-address.dto';
+import { SetPaymentMethodDto } from '../dto/set-payment-method.dto';
 import { UserAddress } from '../../users/entities/user-address.entity';
+import { RestaurantPaymentMethod } from '../../payments/entities/restaurant-payment-method.entity';
 import { Cart, CartItem, CartCoupon } from '../interfaces/cart.interface';
 
-
 @Injectable()
 export class CartService {
   private readonly CART_TTL = 1200; // 20 minutes in seconds
@@ -44,6 +45,7 @@ export class CartService {
       restaurantId,
       restaurantName: restaurant.name,
       items: [],
+      paymentMethodFee: 0,
       totalPrice: 0,
       totalDiscount: 0,
       couponDiscount: 0,
@@ -279,6 +281,52 @@ export class CartService {
     return cart;
   }
 
+  /**
+   * Set payment method for cart
+   */
+  async setPaymentMethod(
+    userId: string,
+    restaurantId: string,
+    setPaymentMethodDto: SetPaymentMethodDto,
+  ): Promise<Cart> {
+    const cart = await this.findOne(userId, restaurantId);
+
+    // Find and validate payment method belongs to restaurant
+    const restaurantPaymentMethod = await this.em.findOne(
+      RestaurantPaymentMethod,
+      {
+        restaurant: { id: restaurantId },
+        paymentMethod: { id: setPaymentMethodDto.paymentMethodId },
+      },
+      { populate: ['restaurant', 'paymentMethod'] },
+    );
+
+    if (!restaurantPaymentMethod) {
+      throw new NotFoundException(
+        `Payment method with ID ${setPaymentMethodDto.paymentMethodId} not found for restaurant ${restaurantId}`,
+      );
+    }
+
+    // Verify payment method is active
+    if (!restaurantPaymentMethod.isActive) {
+      throw new BadRequestException('Payment method is not active for this restaurant');
+    }
+
+    // Verify the payment method itself is active
+    if (!restaurantPaymentMethod.paymentMethod.isActive) {
+      throw new BadRequestException('Payment method is not active');
+    }
+
+    cart.paymentMethodId = setPaymentMethodDto.paymentMethodId;
+    cart.paymentMethodFee = Number(restaurantPaymentMethod.price) || 0;
+
+    // Recalculate cart totals to include payment method fee
+    await this.recalculateCartTotals(cart);
+    await this.saveCart(cart);
+
+    return cart;
+  }
+
   /**
    * Recalculate cart totals (including coupon discount and VAT)
    */
@@ -323,7 +371,22 @@ export class CartService {
     }
 
     cart.vatAmount = vatAmount;
-    cart.finalPrice = priceAfterDiscounts + vatAmount;
+
+    // Get payment method fee if payment method is set
+    let paymentMethodFee = 0;
+    if (cart.paymentMethodId) {
+      const restaurantPaymentMethod = await this.em.findOne(RestaurantPaymentMethod, {
+        restaurant: { id: cart.restaurantId },
+        paymentMethod: { id: cart.paymentMethodId },
+      });
+      if (restaurantPaymentMethod) {
+        paymentMethodFee = Number(restaurantPaymentMethod.price) || 0;
+      }
+    }
+    cart.paymentMethodFee = paymentMethodFee;
+
+    // Final price includes items, discounts, VAT, and payment method fee
+    cart.finalPrice = priceAfterDiscounts + vatAmount + paymentMethodFee;
     cart.totalItems = totalItems;
     cart.updatedAt = new Date().toISOString();
   }
diff --git a/src/modules/payments/entities/restaurant-payment-method.entity.ts b/src/modules/payments/entities/restaurant-payment-method.entity.ts
index e226fd5..b7d3822 100644
--- a/src/modules/payments/entities/restaurant-payment-method.entity.ts
+++ b/src/modules/payments/entities/restaurant-payment-method.entity.ts
@@ -16,6 +16,9 @@ export class RestaurantPaymentMethod extends BaseEntity {
   @Property({ nullable: true })
   merchantId?: string;
 
+  @Property({ type: 'decimal', precision: 10, scale: 2, default: 0 })
+  price: number = 0;
+
   @Property({ type: 'boolean', default: true })
   isActive: boolean = true;
 }