Croatian Instant Payments System

Challenge

Since its launch in 2020, the Croatian Instant Payments System has evolved from a niche service into a critical financial pillar. To meet the 2025 regulatory mandates, Kodilion successfully overhauled the system’s architecture to handle the significant influx of participating banks and constantly rising volume of transactions. Along with advanced performance optimizations, new functional requirements had to be implemented as well.

Project Goals

01

Lower Transaction Processing Time

Maximum time for the end-to-end transaction must be reduced from 10 to 5 seconds.
02

Increase Transaction Throughput

Participation becomes obligatory for all banks, so capacity must rise to meet the future transaction volume.
03

Increase System Resiliency

System must be able to survive load that surpasses its capacity without failure.
04

Implement Verification of Payee

Newly mandated customer safety regulation (VoP) must be implemented

Solution

Kodilion acted as a core delivery partner, providing expertise in the initial strategic workshops, as well as the technical backbone for the system’s evolution. By combining deep domain knowledge with proven engineering techniques, we delivered a payments system that is fast, resilient, and fully compliant with all regulatory mandates. The resulting architecture is built to scale alongside the evolving demands of the European payments landscape.

Project Deliveries

01

Significantly Optimized Transaction Processing Time

Transaction processing time was reduced to well under 5 seconds, even in high load situations.
02

Transaction Throughput Enhanced

Throughput was significantly upgraded: from 50 to 200 transactions per second.
03

Vastly Improved System Resiliency

New failsafes and throttling mechanisms were implemented, ensuring stability in high load situations.
04

Implement Verification of Payee

VoP checks implemented successfully.

Tech & Business

Technologies: Java, Spring Boot, IBM DB2, MyBatis, Flyway, IBM MQ, JMS, Hazelcast, Thymeleaf, Bootstrap, JMeter, Kubernetes, Docker, IBM WebSphere, JAXB / Jakarta XML Bind, Jenkins, Gatling

Business Standards: SEPA Instant Payments Rulebook, ISO 20022, EU eIDAS, EU DSS

After architecting and building the system back in 2020, this was a truly major overhaul. I’m happy that it is now ready for the rising volume of transactions, and particularly pleased with the stability we achieved.