PayPal Interview Experience | SDE3 | Chennai

Interview Experience

My journey started when I was contacted by a recruiter via email for an SDE3 position and subsequently received a HackerRank test link.

HackerRank Test

The HackerRank test consisted of 3 questions:

• Two questions based on Priority Queue/Heap (one Easy, one Medium)
• One Easy-level coding question

Round 1 – DSA

This round focused on evaluating more efficient solutions, a deeper understanding of algorithmic trade-offs, and intermediate data structures. The expectation was to optimize code, discuss alternative approaches, and manage more complex edge cases.

What was asked:

• Two Medium-level coding questions
• Five scenario-based questions on choosing the right data structure for a specific use case. (A note was made to learn about all data structures, including trie.)

Round 2 – System Design

The focus here was on more detailed system design, including handling data flow, state management, and basic fault tolerance. I was expected to demonstrate the ability to design systems that can scale moderately and recover from failures, along with a basic understanding of trade-offs in design decisions.

What was asked:

• Design of a Shopping Website, with a deeper focus on the Cart and Wishlist functionalities.
• Follow-up questions on HLD concepts like caching, load balancing, data flow, etc.

Round 3 – Coding + Design Mixed

This round involved more complex coding tasks, including small-to-medium feature development and problem-solving requiring intermediate domain knowledge. The expectations were clean, efficient code with a good understanding of best practices and design patterns, along with the ability to handle more complex problems independently and introduce codebase improvements.

What was asked:

• A mix of HLD, LLD, and DSA questions.
• Questions on REST vs SOAP, scaling systems, and handling huge datasets.

Bar Raiser – 1

For this round, the expectations were to show initiative, demonstrate the ability to lead small projects or tasks, and begin mentoring or guiding others. I was expected to handle conflicts constructively and contribute to team goals.

What was asked:

• Three behavioral questions.
• A detailed discussion around PayPal principles and my alignment with them.

Bar Raiser – 2

What was asked:

• HLD questions focusing on Load Balancing, DB Optimization, etc.
• Random Java & DSA questions.
• A few behavioral questions.
• Discussions on my roles & responsibilities in previous organizations and about past projects.
• Discussion around the role and expectations for the SDE3 position.

Interview Scheduling Timeline

• Each round lasted approximately 45 minutes.
• The gap between rounds varied from 1 to 2 weeks, depending on availability and scheduling.

Note: This interview structure may vary now. I attended this process in the beginning of 2025.