Scalability for UPI System Design
- Horizontal Scaling:
- Microservices Architecture: Each service can be scaled independently based on demand.
- Load Balancing: Distribute incoming requests across multiple instances.
- Caching
- Redis: Use Redis to cache user sessions, frequently accessed data, and transaction states.
- Database Sharding
- Shard by User ID: Distribute user data across multiple database instances to reduce load.
- Asynchronous Processing
- Message Queues: Use message queues (e.g., RabbitMQ, Kafka) to handle asynchronous tasks like notifications and transaction processing.
- Fault Tolerance
- Circuit Breaker Pattern: Implement circuit breakers to prevent cascading failures.
- Retry Mechanism: Retry failed operations to handle transient failures.
Designing UPI – System Design
Designing a Unified Payments Interface (UPI) system involves creating an architecture that enables real-time inter-bank transactions through a seamless and secure platform. Key components include user interfaces, a central UPI switch managed by the National Payments Corporation of India (NPCI), backend systems of participating banks, and third-party service providers.
- The system supports core functionalities such as user registration and authentication, payment initiation and authorization, inter-bank transaction processing, and real-time settlement.
- Security measures like encryption and multi-factor authentication ensure compliance and protect against fraud, making UPI a reliable and efficient payment solution.
- The UPI is a real-time payment system that facilitates inter-bank transactions by instantly transferring funds between two bank accounts on a mobile platform.
Important Topics for UPI system design
- Functional Requirements for UPI System Design
- Non-Functional Requirements for UPI System Design
- Capacity Estimation for UPI System Design
- High-Level Design(HLD) for UPI System Design
- Low-Level Diagram(LLD) for UPI System Design
- Microservices Used in UPI System Design
- Scalability for UPI System Design