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PayPal·Software Engineer·Onsite - System Design / Architecture·Senior

Senior
Jun 2026

Summary

PayPal system design round for a software engineer role. One meaty question about cross-border payments that had a lot more moving parts than I expected going in.

Questions Asked (1)

Q1

Design a cross-border money transfer service like Remitly, accounting for country-specific transfer restrictions and real-time exchange rate lookups.

System DesignAPI & IntegrationsTechnical Trade-offs
Author's notes

I started with the happy path and got pretty far before they pushed on the compliance angle.

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AI HintsAI Generated

Suggested Approach

Start by clarifying requirements and scope, then design a high-level architecture that separates concerns: user-facing APIs, transfer orchestration, compliance, FX rates, and payment rails. Dive into the two highlighted challenges—country-specific restrictions and real-time FX—by discussing data models, caching, and integration patterns, and wrap up with trade-offs and scalability considerations.

Pro tip: Emphasize idempotency and exactly-once processing for transfers, as money movement demands strong consistency and failure recovery; also mention how you'd handle partial failures in a distributed transaction.

1. Clarify Requirements and Scope

Ask questions to understand scale, supported countries, currencies, compliance needs, and latency requirements. Define functional and non-functional requirements to guide the design.

2. High-Level Architecture

Sketch the main components: API gateway, user service, transfer service, compliance service, FX service, payment processor integrations, and ledger. Explain how they interact to initiate and complete a transfer.

3. Country-Specific Restrictions

Design a rules engine or configuration service that encodes per-country limits, required documents, and prohibited corridors. Discuss how to keep rules up-to-date and enforce them at transfer initiation and completion.

4. Real-Time Exchange Rates

Describe how to fetch rates from providers, cache them with appropriate TTL, and handle failures. Discuss rate locking, spread, and how to ensure consistency between quoted and executed rates.

5. Trade-offs and Scalability

Discuss trade-offs like consistency vs. availability, latency vs. accuracy, and build vs. buy for FX and compliance. Outline scaling strategies for high throughput and global distribution.

Key Points to Mention

  • Idempotency and exactly-once processing for transfers to prevent duplicate payments.
  • Data model for country restrictions: rules engine, configuration service, and audit trails.
  • FX rate sourcing, caching strategies (TTL, fallback), and rate locking mechanisms.
  • Integration with payment rails (bank transfers, card networks) and handling asynchronous callbacks.
  • Compliance considerations: KYC, AML, and regulatory reporting per country.
  • Monitoring, alerting, and reconciliation for failed or stuck transfers.

AI-generated suggestions, not part of the candidate's original notes. May be inaccurate — verify before relying on them.