diff --git a/api/server.go b/api/server.go
index 32d9614..17287bf 100644
--- a/api/server.go
+++ b/api/server.go
@@ -14,7 +14,7 @@ func NewServer(store db.Store) *Server {
 	server := &Server{store: store}
 	router := gin.Default()
 
-	router.POST("/merchants", server.createUser)
+	router.POST("/user/merchants", server.createUserMerchant)
 	router.POST("/products", server.createProduct)
 	router.PATCH("/products", server.updateProduct)
 	router.GET("/product/:id", server.getProduct)
diff --git a/api/user.go b/api/user.go
index 1451e63..499e8a9 100644
--- a/api/user.go
+++ b/api/user.go
@@ -5,19 +5,20 @@ import (
 	"net/http"
 
 	db "git.nochill.in/nochill/naice_pos/db/sqlc"
+	"git.nochill.in/nochill/naice_pos/util"
 	"github.com/gin-gonic/gin"
 	"github.com/google/uuid"
 	"github.com/lib/pq"
 )
 
-type createUserRequest struct {
+type createUserMerchantRequest struct {
 	Email      string `json:"email" binding:"required,email"`
 	Fullname   string `json:"fullname" binding:"required"`
 	Password   string `json:"password" binding:"required"`
 	OutletName string `json:"outlet_name" binding:"required"`
 }
 
-type createUserResponse struct {
+type createUserMerchantResponse struct {
 	ID        uuid.UUID    `json:"id"`
 	IndexID   int64        `json:"index_id"`
 	Email     string       `json:"email"`
@@ -27,18 +28,23 @@ type createUserResponse struct {
 	Outlet    db.Merchant  `json:"outlet"`
 }
 
-func (server *Server) createUser(ctx *gin.Context) {
-	var req createUserRequest
-
+func (server *Server) createUserMerchant(ctx *gin.Context) {
+	var req createUserMerchantRequest
 	if err := ctx.ShouldBindJSON(&req); err != nil {
 		ctx.JSON(http.StatusBadRequest, errorResponse(err))
 		return
 	}
 
+	hashedPassword, err := util.HashPassword(req.Password)
+	if err != nil {
+		ctx.JSON(http.StatusInternalServerError, errorResponse(err))
+		return
+	}
+
 	arg := db.UserMerchantTxParams{
 		Email:      req.Email,
 		Fullname:   req.Fullname,
-		Password:   req.Password,
+		Password:   hashedPassword,
 		OutletName: req.OutletName,
 	}
 
@@ -55,7 +61,7 @@ func (server *Server) createUser(ctx *gin.Context) {
 		return
 	}
 
-	res := createUserResponse{
+	res := createUserMerchantResponse{
 		ID:        user.OwnerProfile.ID,
 		IndexID:   user.OwnerProfile.IndexID,
 		Email:     user.OwnerProfile.Email,
diff --git a/api/user_test.go b/api/user_test.go
index 778f64e..10c4f13 100644
--- a/api/user_test.go
+++ b/api/user_test.go
@@ -1 +1,135 @@
 package api
+
+import (
+	"bytes"
+	"encoding/json"
+	"fmt"
+	"io/ioutil"
+	"net/http"
+	"net/http/httptest"
+	"reflect"
+	"testing"
+
+	mockdb "git.nochill.in/nochill/naice_pos/db/mock"
+	db "git.nochill.in/nochill/naice_pos/db/sqlc"
+	"git.nochill.in/nochill/naice_pos/util"
+	"github.com/gin-gonic/gin"
+	"github.com/golang/mock/gomock"
+	"github.com/stretchr/testify/require"
+)
+
+type eqCreateUserMerchantParamsMatcher struct {
+	arg      db.UserMerchantTxParams
+	password string
+}
+
+func (e eqCreateUserMerchantParamsMatcher) Matches(x interface{}) bool {
+	arg, ok := x.(db.UserMerchantTxParams)
+	if !ok {
+		return false
+	}
+
+	err := util.CheckPassword(e.password, arg.Password)
+	if err != nil {
+		return false
+	}
+
+	e.arg.Password = arg.Password
+	return reflect.DeepEqual(e.arg.Password, arg.Password)
+}
+
+func (e eqCreateUserMerchantParamsMatcher) String() string {
+	return fmt.Sprintf("matches arg  %v and password %v", e.arg, e.password)
+}
+
+func EqCreateUserMerchant(arg db.UserMerchantTxParams, password string) gomock.Matcher {
+	return eqCreateUserMerchantParamsMatcher{arg, password}
+}
+
+func TestCreateUserMerchantAPI(t *testing.T) {
+	userMerchant, password := RandomUser(t)
+	var userMerchantResult db.UserMerchantTxResult
+	// var userMerchantResponse createUserMerchantResponse
+	testCases := []struct {
+		name          string
+		body          gin.H
+		buildStubs    func(store *mockdb.MockStore)
+		checkResponse func(recorder *httptest.ResponseRecorder)
+	}{
+		{
+			name: "OK",
+			body: gin.H{
+				"email":       userMerchant.Email,
+				"fullname":    userMerchant.Fullname,
+				"password":    password,
+				"outlet_name": userMerchant.OutletName,
+			},
+			buildStubs: func(store *mockdb.MockStore) {
+				arg := db.UserMerchantTxParams{
+					Email:      userMerchant.Email,
+					Fullname:   userMerchant.Fullname,
+					OutletName: userMerchant.OutletName,
+				}
+				store.EXPECT().
+					CreateUserMerchantTx(gomock.Any(), EqCreateUserMerchant(arg, password)).
+					Times(1).
+					Return(userMerchantResult, nil)
+			},
+			checkResponse: func(recorder *httptest.ResponseRecorder) {
+				require.Equal(t, http.StatusOK, recorder.Code)
+				// requireBodyMatchUserMerchant(t, recorder.Body, userMerchantResponse)
+			},
+		},
+	}
+
+	for i := range testCases {
+		tc := testCases[i]
+
+		t.Run(tc.name, func(t *testing.T) {
+			ctrl := gomock.NewController(t)
+			defer ctrl.Finish()
+
+			store := mockdb.NewMockStore(ctrl)
+			tc.buildStubs(store)
+
+			server := NewServer(store)
+			recorder := httptest.NewRecorder()
+
+			data, err := json.Marshal(tc.body)
+			require.NoError(t, err)
+
+			url := "/user/merchants"
+			request, err := http.NewRequest(http.MethodPost, url, bytes.NewReader(data))
+			require.NoError(t, err)
+
+			server.router.ServeHTTP(recorder, request)
+			tc.checkResponse(recorder)
+
+		})
+	}
+}
+
+func RandomUser(t *testing.T) (userMerchant db.UserMerchantTxParams, password string) {
+	password = util.RandomString(6)
+	hashedPassword, err := util.HashPassword(password)
+	require.NoError(t, err)
+
+	userMerchant = db.UserMerchantTxParams{
+		Email:      util.RandomEmail(),
+		Fullname:   util.RandomString(5),
+		Password:   hashedPassword,
+		OutletName: util.RandomString(10),
+	}
+
+	return
+}
+
+func requireBodyMatchUserMerchant(t *testing.T, body *bytes.Buffer, userMerchant createUserMerchantResponse) {
+	data, err := ioutil.ReadAll(body)
+	require.NoError(t, err)
+
+	var gotUserMerchant db.UserMerchantTxParams
+	err = json.Unmarshal(data, &gotUserMerchant)
+
+	require.NoError(t, err)
+}