Submit your papersSubmit Now
For Enquiries: [email protected]
IIARD LogoIIARD

Blockchain-Based Automated Payment System

Ibebuogu Christian Chinwe, Ulysses Chinenyeaka Ebizie

Abstract

In today’s fast changing digital world, the need for secure, transparent, and reliable financial transactions is more important than ever especially in areas where fraud, delays, and unauthorized access are common concerns. Traditional payment systems often depend on centralized middlemen, which can lead to slow processing, high fees, and risks of data tampering or cyberattacks. This work introduces an automated payment processing system powered by blockchain technology, designed to make digital transactions faster, safer, and more trustworthy without relying on third parties. The motivation for this system came from real-world frustrations with issues like payment fraud, slow transactions, and the lack of visibility in how money moves within traditional financial systems. To build this system effectively, the Structured Systems Analysis and Design Methodology (SSADM) was adopted. This method provides a clear, step-by- step approach for understanding problems and creating effective systems. With blockchain at its core, the system will support real-time transaction validation, ensure that data can’t be altered, reduce costs, and remove central points of failure. Overall, it aims to build user confidence and create a more resilient payment infrastructure. By solving key problems found in conventional systems, this project hopes to contribute to the next generation of secure, scalable, and efficient financial technologies for businesses and organizations.

Keywords

BlockchainAutomated Payment SystemFinancial SecurityDecentralizationReal-

References

Arif, M. S., Uddin, M. J., & Alotaibi, F. (2024). Legal implications and regulatory challenges in blockchain-based digital payment systems. Procedia Computer Science, 228, 613–620. https://doi.org/10.1016/j.procs.2023.12.240 Christidis, K., & Devetsikiotis, M. (2016). Blockchains and smart contracts for the internet of things. IEEE Access, 4, 2292–2303. https://doi.org/10.1109/ACCESS.2016.2566339 Conti, M., Kumar, S., Lal, C., & Ruj, S. (2018). A survey on security and privacy issues of blockchain technology. IEEE Communications Surveys & Tutorials, 21(2), 116–145. https://doi.org/10.1109/COMST.2018.2842460 Dinh, T. T. A., Liu, R., Zhang, M., Chen, G., Ooi, B. C., & Wang, J. (2018). Untangling blockchain: A data processing view of blockchain systems. IEEE Transactions on Knowledge and Data Engineering, 30(7), 1366–1385. https://doi.org/10.1109/TKDE.2017.2781227 Edge Research. (2023). Barriers to blockchain adoption in payment systems: Technical challenges and standardization issues. IEEE Access, 11, 37621–37635. https://doi.org/10.1109/ACCESS.2023.3251165 Fan, Y., & Zhang, T. (2023). Exploring consumer trust in blockchain-based payment gateways: An empirical study. Sustainability, 15(3), 2342. https://doi.org/10.3390/su15032342 García-Bañuelos, L., Ponomarev, A., Dumas, M., & Weber, I. (2017). Optimized execution of business processes on blockchain. In International Conference on Business Process Management (pp. 130–146). Springer. https://doi.org/10.1007/978-3-319-65000-5_8 Gupta, R., & Roy, S. (2023). Factors influencing the adoption of blockchain in digital payment systems: A systematic literature review. IEEE Access, 11, 45678–45690. https://doi.org/10.1109/ACCESS.2023.3257854 MDPI. (2025). Blockchain-based systems in finance: Security, transparency, and trust. MDPI Open Access Journals. https://www.mdpi.com Nakamoto, S. (2008). Bitcoin: A peer-to-peer electronic cash system. https://bitcoin.org/bitcoin.pdf Nofer, M., Gomber, P., Hinz, O., & Schiereck, D. (2017). Blockchain. Business & Information Systems Engineering, 59(3), 183–187. https://doi.org/10.1007/s12599-017-0467-3 Peters, G. W., & Panayi, E. (2016). Understanding modern banking ledgers through blockchain technologies: Future of transaction processing and smart contracts on the internet of money. In D. Lee (Ed.), Handbook of digital currency: Bitcoin, innovation, financial instruments, and big data (pp. 239–278). Academic Press. Rapid Innovation. (2024, September). How blockchain reduces transaction fees and improves global payments. https://www.rapidinnovation.io/post/how-blockchain-is-improving- global-payments Reuters. (2024, July 14). JPMorgan, Citi among major banks using blockchain to settle tokenized assets. https://www.reuters.com/technology/major-banks-use-blockchain-tokenized- settlement-2024-07-14/ Reuters. (2024, November 7). UBS launches live pilot of blockchain-based digital currency for payments. https://www.reuters.com/business/finance/ubs-launches-live-pilot-blockchain- based-digital-currency-payments-2024-11-07/ SecurePay (Lin, J., Liu, M., Li, S., & Wang, X.). (2025, May). SecurePay: Enabling secure and fast payment processing for platform economy [arXiv preprint]. https://arxiv.org/abs/2505.06347 Tapscott, D., & Tapscott, A. (2016). Blockchain revolution: How the technology behind bitcoin and other cryptocurrencies is changing the world. Penguin. Times of India. (2025, February 18). How blockchain is expanding beyond cryptocurrency into healthcare and retail. https://timesofindia.indiatimes.com/business Treleaven, P., Brown, R. G., & Yang, D. (2017). Blockchain technology in finance. Computer, 50(9), 14–17. https://doi.org/10.1109/MC.2017.3571042 Xiao, Y., Zhang, N., Lou, W., & Hou, Y. T. (2020). A survey of distributed consensus protocols for blockchain networks. IEEE Communications Surveys & Tutorials, 22(2), 1432–1465. https://doi.org/10.1109/COMST.2020.2969706 Zheng, Z., Xie, S., Dai, H., Chen, X., & Wang, H. (2018). An overview of blockchain technology: Architecture, consensus, and future trends. In IEEE International Congress on Big Data (BigData Congress) (pp. 557–564). https://doi.org/10.1109/BigDataCongress.2017.85

More Articles from IIARD INTERNATIONAL JOURNAL OF BANKING AND FINANCE RESEARCH

Effect of Monetary Policy on Profitability of Deposit Money Banks in Nigeria

Author: Stephanie Nguhemen Gbande, Mike T. Soomiyol, Timothy Tyona, Gaius Msendoo Asombo

Cognitive Diversity and Performance of Deposit Money Banks in Nigeria

Author: 1Nwangwu, Okwudiri Iheanyi, 2 Pepple, Grace Jamie PhD

Banking Innovations and Industrial Sector Performance in Nigeria: Evidence from ARDL Model

Author: Peter Ngbede Ajam, Abiodun Edward Adelegan, Benson Emmanuel

Environmental Sustainability and Entrepreneurial Performance in Nigeria: A Case Study of Enugu State

Author: i, Azolike Nkiru Nkechi, ii, Okwor Emmanuel Ejimnkonye, iii, Eneaniofu Daniel Mmaduakonam