The objective of this project was to design and test a secure IP-based architecture suitable for short duration transactions. This included the development of a prototype test-bed in which various operating scenarios (such as cryptographic options, various IP-based architectures and fault tolerance) were demonstrated. A solution based on SIP secured with TLS was tested on two IP based architectures. Total time, CPU time and heap usage was measured for each architecture and encryption scheme to examine the viability of such a solution. The results showed that the proposed solution stack was able to complete transactions in reasonable time and was able to recover from transaction processor failure. This research has demonstrated a possible architecture and protocol stack suitable for IP-based transaction networks. The benefits of an IP-based transaction network include reduced operating costs for network providers and clients, as shared IP infrastructure is used, instead of maintaining a separate IP and X.25 network.