Design a Rate Limiting for PayPal
Last updated: December 22, 2025
Quick Overview
Design a high-throughput rate limiting system that handles millions of requests. Discuss trade-offs in consistency, availability, and performance.
PayPal
System Design
Software Engineer
PayPal
December 22, 2025Software Engineer
Onsite
System Design
Hard
22
0
935 solved
Design a high-throughput rate limiting system that handles millions of requests. Discuss trade-offs in consistency, availability, and performance.
System design interviews at PayPal typically last 45-60 minutes. You are expected to drive the conversation, starting from requirements gathering through to a detailed architecture. The interviewer will evaluate your ability to handle ambiguity and make practical engineering decisions.
What the Interviewer Expects
- Drive the design discussion proactively with minimal interviewer guidance
- Perform detailed capacity estimation and use it to inform design decisions
- Design for global scale with multi-region deployment and data consistency
- Deep dive into 2-3 critical components with implementation-level detail
- Address complex trade-offs: CAP theorem, eventual consistency, conflict resolution
- Discuss operational excellence: deployment strategy, chaos engineering, SLOs/SLIs
- Propose a phased rollout plan from MVP to full-scale system
Key Topics to Cover
Requirements gathering and capacity estimation
High-level architecture and component design
Failure handling and fault tolerance
Caching strategies (local, distributed, CDN)
How to Approach This
- Start by clarifying functional and non-functional requirements with the interviewer.
- Estimate the scale: QPS, storage, bandwidth. This drives your design decisions.
- Draw a high-level architecture first, then deep dive into 1-2 critical components.
- Discuss trade-offs explicitly (e.g., consistency vs availability, SQL vs NoSQL).
- Address failure scenarios, monitoring, and how the system handles 10x traffic spikes.
Possible Follow-up Questions
- How do you ensure data consistency across multiple services?
- How would you migrate from a monolithic to a microservices architecture?
- What would the deployment pipeline look like for this system?
- How would you handle a region-wide outage?
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Requirements
- Functional Requirements:
- Rate limit requests per user/IP address to prevent abuse.
- Support for different rate limiting policies (e.g., burst, steady).
- Provide real-time analytics ...
Capacity Estimation
- User Base Estimation: Assume PayPal has 400 million active users.
- Request Rate: If each user makes an average of 10 requests per minute, total requests = 400M * 10 = 4 billion requests/min...
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