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Designing a High-Performance Payment Switch for Millions of Transactions

2025-01-05

Overview

In this case study I describe how I designed and led the implementation of an enterprise-grade Payment Switch handling mobile money, carrier billing, wallet transfers and merchant payments across multiple channels.

The Problem

The client was processing large volumes of USSD, mobile app, and API-initiated transactions but suffered from:

  • High latency during peak hours
  • No unified orchestration layer
  • Tight coupling between channels & backend systems
  • Poor observability and no end-to-end traceability

The Architecture I Designed

I introduced a cleanly decoupled, event-driven microservices architecture with:

  • Java 17 + Spring Boot microservices
  • Kafka-based event backbone
  • Stateless services behind a centralized routing layer
  • Redis + Postgres for caching and durable storage
  • Fault-tolerant retry and circuit-breaker patterns

Key Improvements

  • Reduced median latency from 950ms → 120ms
  • Increased throughput to 20K+ TPS sustained
  • Achieved 99.995% SLA
  • Cutting deployment rollback time from 10 minutes to under 15 seconds

Impact

The platform now supports millions of customers daily and has become the core payment engine for 3 major business units.