Secure Digital Payments and Decentralized Finance: A Blockchain-Tethered Microtransaction Engine for Emerging Markets

Author(s)	Utham Kumar Anugula Sethupathy
Country	Singapore
Abstract	Digital financial inclusion remains a pressing challenge across emerging markets, where traditional banking infrastructure is limited and transaction costs hinder broad economic participation. This paper presents a novel micro transaction engine that leverages blockchain technology and decentralized finance (DeFi) principles to enable secure, low-cost, and real-time digital payments. The system integrates a smart contract-based clearing mechanism with AI-driven fraud detection, ensuring trustless execution and operational resilience. By anchoring off-chain micro transactions to an on-chain settlement ledger, the architecture achieves both scalability and compliance with regional financial regulations. A pilot deployment in an African mobile payment context demonstrates reduced transaction fees by over 70% and a 43% improvement in fraud detection accuracy. These findings position the system as a viable foundation for inclusive and next-generation digital financial ecosystems.
Keywords	Digital payments, decentralized finance, blockchain, microtransactions, emerging markets, AI fraud detection, state channels, regulatory compliance
Field	Engineering
Published In	Volume 15, Issue 2, April-June 2024
Published On	2024-05-10
DOI	https://doi.org/10.71097/IJSAT.v15.i2.8032
Short DOI	https://doi.org/g9z5m2

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International Journal on Science and Technology