Technical review: Real-time payment processing system for banking industry

Yadlapalli, Rakesh (2025) Technical review: Real-time payment processing system for banking industry. World Journal of Advanced Engineering Technology and Sciences, 15 (3). pp. 2381-2388. ISSN 2582-8266

The modern banking landscape demands sophisticated payment processing solutions capable of handling high-volume transactions with minimal latency while maintaining stringent security and compliance standards. This technical review presents a comprehensive evaluation of an advanced real-time payment processing system specifically designed for the banking industry, leveraging event-driven microservices architecture to deliver fast, secure, and scalable transaction handling capabilities. Contemporary financial institutions face mounting pressure to provide instantaneous payment processing while navigating complex regulatory environments and evolving customer expectations. The system addresses critical challenges, including instant payment processing, regulatory compliance, fraud prevention, and seamless customer experience through machine learning algorithms that operate in real-time without introducing significant processing delays. The event-driven microservices architecture enables financial institutions to decompose monolithic payment systems into discrete, independently scalable services that communicate through asynchronous event streams. Each microservice can be optimized for specific functions such as authentication, authorization, transaction validation, settlement processing, and regulatory reporting. The distributed nature of this architecture supports horizontal scaling strategies that accommodate varying transaction volumes while maintaining consistent response times across all service endpoints. The system demonstrates exceptional fault tolerance, comprehensive security implementation, and regulatory compliance readiness essential for deployment in regulated financial environments.