diff --git a/api/nexus/payments/confirm-payment.ts b/api/nexus/payments/confirm-payment.ts
new file mode 100644
index 00000000..971a81bf
--- /dev/null
+++ b/api/nexus/payments/confirm-payment.ts
@@ -0,0 +1,133 @@
+import type { VercelRequest, VercelResponse } from "@vercel/node";
+import Stripe from "stripe";
+import { getAdminClient } from "../../_supabase";
+
+const stripe = new Stripe(process.env.STRIPE_SECRET_KEY || "", {
+  apiVersion: "2024-11-20",
+});
+
+export default async function handler(req: VercelRequest, res: VercelResponse) {
+  if (req.method !== "POST") {
+    return res.status(405).json({ error: "Method not allowed" });
+  }
+
+  const admin = getAdminClient();
+
+  // Only authenticated requests
+  const authHeader = req.headers.authorization;
+  if (!authHeader) {
+    return res.status(401).json({ error: "Unauthorized" });
+  }
+
+  const token = authHeader.replace("Bearer ", "");
+  const {
+    data: { user },
+    error: authError,
+  } = await admin.auth.getUser(token);
+
+  if (authError || !user) {
+    return res.status(401).json({ error: "Invalid token" });
+  }
+
+  try {
+    const { paymentIntentId, contractId } = req.body;
+
+    if (!paymentIntentId || !contractId) {
+      return res.status(400).json({
+        error: "Missing required fields: paymentIntentId, contractId",
+      });
+    }
+
+    // Retrieve payment intent from Stripe
+    const paymentIntent = await stripe.paymentIntents.retrieve(paymentIntentId);
+
+    if (paymentIntent.status !== "succeeded") {
+      return res.status(400).json({
+        error: `Payment not succeeded. Status: ${paymentIntent.status}`,
+      });
+    }
+
+    // Verify contract belongs to user
+    const { data: contract, error: contractError } = await admin
+      .from("nexus_contracts")
+      .select("*")
+      .eq("id", contractId)
+      .eq("client_id", user.id)
+      .single();
+
+    if (contractError || !contract) {
+      return res.status(403).json({ error: "Contract not found or unauthorized" });
+    }
+
+    // Update contract status to active
+    const { error: updateError } = await admin
+      .from("nexus_contracts")
+      .update({
+        status: "active",
+        start_date: new Date().toISOString(),
+      })
+      .eq("id", contractId);
+
+    if (updateError) {
+      return res.status(500).json({ error: updateError.message });
+    }
+
+    // Create payment record
+    const { data: payment, error: paymentError } = await admin
+      .from("nexus_payments")
+      .insert({
+        contract_id: contractId,
+        amount: contract.total_amount,
+        creator_payout: contract.creator_payout_amount,
+        aethex_commission: contract.aethex_commission_amount,
+        payment_method: "stripe",
+        payment_status: "completed",
+        payment_date: new Date().toISOString(),
+        stripe_payment_intent_id: paymentIntentId,
+      })
+      .select()
+      .single();
+
+    if (paymentError) {
+      return res.status(500).json({ error: paymentError.message });
+    }
+
+    // Update creator profile with new earnings
+    const { data: creatorProfile } = await admin
+      .from("nexus_creator_profiles")
+      .select("total_earnings")
+      .eq("user_id", contract.creator_id)
+      .single();
+
+    const newEarnings = (creatorProfile?.total_earnings || 0) + contract.creator_payout_amount;
+
+    await admin
+      .from("nexus_creator_profiles")
+      .update({ total_earnings: newEarnings })
+      .eq("user_id", contract.creator_id);
+
+    // Update opportunity to mark as filled
+    await admin
+      .from("nexus_opportunities")
+      .update({ status: "filled", selected_creator_id: contract.creator_id })
+      .eq("id", contract.opportunity_id);
+
+    // Update application status to hired
+    await admin
+      .from("nexus_applications")
+      .update({ status: "hired" })
+      .eq("opportunity_id", contract.opportunity_id)
+      .eq("creator_id", contract.creator_id);
+
+    return res.status(200).json({
+      success: true,
+      contractId,
+      paymentId: payment.id,
+      status: "active",
+      message: "Contract activated and payment processed",
+    });
+  } catch (error: any) {
+    console.error("Confirm payment error:", error);
+    return res.status(500).json({ error: error?.message || "Server error" });
+  }
+}