diff --git a/lnbits/app.py b/lnbits/app.py
index 4f5d7a005..69a184214 100644
--- a/lnbits/app.py
+++ b/lnbits/app.py
@@ -14,7 +14,6 @@ from typing import Callable, List
 from fastapi import FastAPI, HTTPException, Request
 from fastapi.exceptions import RequestValidationError
 from fastapi.middleware.cors import CORSMiddleware
-from fastapi.middleware.gzip import GZipMiddleware
 from fastapi.staticfiles import StaticFiles
 from loguru import logger
 from slowapi import Limiter
@@ -45,6 +44,7 @@ from .core.views.generic import core_html_routes
 from .extension_manager import Extension, InstallableExtension, get_valid_extensions
 from .helpers import template_renderer
 from .middleware import (
+    CustomGZipMiddleware,
     ExtensionsRedirectMiddleware,
     InstalledExtensionMiddleware,
     add_ip_block_middleware,
@@ -87,7 +87,9 @@ def create_app() -> FastAPI:
         CORSMiddleware, allow_origins=["*"], allow_methods=["*"], allow_headers=["*"]
     )
 
-    app.add_middleware(GZipMiddleware, minimum_size=1000)
+    app.add_middleware(
+        CustomGZipMiddleware, minimum_size=1000, exclude_paths=["/api/v1/payments/sse"]
+    )
 
     # order of these two middlewares is important
     app.add_middleware(InstalledExtensionMiddleware)
diff --git a/lnbits/core/models.py b/lnbits/core/models.py
index 01e485c9e..c9fb56a36 100644
--- a/lnbits/core/models.py
+++ b/lnbits/core/models.py
@@ -170,6 +170,8 @@ class Payment(FromRowModel):
     async def set_pending(self, pending: bool) -> None:
         from .crud import update_payment_status
 
+        self.pending = pending
+
         await update_payment_status(self.checking_id, pending)
 
     async def check_status(
diff --git a/lnbits/core/views/api.py b/lnbits/core/views/api.py
index c1a1ad2aa..958d2b164 100644
--- a/lnbits/core/views/api.py
+++ b/lnbits/core/views/api.py
@@ -4,10 +4,9 @@ import json
 import uuid
 from http import HTTPStatus
 from io import BytesIO
-from typing import Dict, List, Optional, Tuple, Union
+from typing import Dict, List, Optional, Union
 from urllib.parse import ParseResult, parse_qs, urlencode, urlparse, urlunparse
 
-import async_timeout
 import httpx
 import pyqrcode
 from fastapi import (
@@ -421,34 +420,18 @@ async def subscribe_wallet_invoices(request: Request, wallet: Wallet):
     logger.debug(f"adding sse listener for wallet: {uid}")
     api_invoice_listeners[uid] = payment_queue
 
-    send_queue: asyncio.Queue[Tuple[str, Payment]] = asyncio.Queue(0)
-
-    async def payment_received() -> None:
-        while True:
-            try:
-                async with async_timeout.timeout(1):
-                    payment: Payment = await payment_queue.get()
-                    if payment.wallet_id == this_wallet_id:
-                        logger.debug("sse listener: payment received", payment)
-                        await send_queue.put(("payment-received", payment))
-            except asyncio.TimeoutError:
-                pass
-
-    task = asyncio.create_task(payment_received())
-
     try:
         while True:
             if await request.is_disconnected():
                 await request.close()
                 break
-            typ, data = await send_queue.get()
-            if data:
-                jdata = json.dumps(dict(data.dict(), pending=False))
-                yield dict(data=jdata, event=typ)
+            payment: Payment = await payment_queue.get()
+            if payment.wallet_id == this_wallet_id:
+                logger.debug("sse listener: payment received", payment)
+                yield dict(data=payment.json(), event="payment-received")
     except asyncio.CancelledError:
         logger.debug(f"removing listener for wallet {uid}")
         api_invoice_listeners.pop(uid)
-        task.cancel()
         return
 
 
diff --git a/lnbits/middleware.py b/lnbits/middleware.py
index d6d4206d2..2944702e4 100644
--- a/lnbits/middleware.py
+++ b/lnbits/middleware.py
@@ -7,6 +7,7 @@ from fastapi.responses import HTMLResponse, JSONResponse
 from slowapi import _rate_limit_exceeded_handler
 from slowapi.errors import RateLimitExceeded
 from slowapi.middleware import SlowAPIMiddleware
+from starlette.middleware.gzip import GZipMiddleware
 from starlette.types import ASGIApp, Receive, Scope, Send
 
 from lnbits.core import core_app_extra
@@ -115,6 +116,18 @@ class InstalledExtensionMiddleware:
         )
 
 
+class CustomGZipMiddleware(GZipMiddleware):
+    def __init__(self, *args, exclude_paths=None, **kwargs):
+        super().__init__(*args, **kwargs)
+        self.exclude_paths = exclude_paths or []
+
+    async def __call__(self, scope: Scope, receive: Receive, send: Send) -> None:
+        if "path" in scope and scope["path"] in self.exclude_paths:
+            await self.app(scope, receive, send)
+            return
+        await super().__call__(scope, receive, send)
+
+
 class ExtensionsRedirectMiddleware:
     # Extensions are allowed to specify redirect paths.
     # A call to a path outside the scope of the extension can be redirected to one of the extension's endpoints.