diff --git a/apps/edr-passenger-web/portal/src/app/booking/payment/page.tsx b/apps/edr-passenger-web/portal/src/app/booking/payment/page.tsx
index 34f1fada1..716db1168 100644
--- a/apps/edr-passenger-web/portal/src/app/booking/payment/page.tsx
+++ b/apps/edr-passenger-web/portal/src/app/booking/payment/page.tsx
@@ -1,148 +1,163 @@
-'use client';
+"use client";
 
-import { useRouter } from 'next/navigation';
-import { useBookingStore } from '@/lib/booking-store';
-import { usePaymentStore } from '@/lib/payment-store';
-import { useMutation } from '@tanstack/react-query';
-import { apiClient } from '@/lib/api-client';
-import { useState, useEffect } from 'react';
-import { CreditCard, Smartphone, Wallet, Loader2, CheckCircle } from 'lucide-react';
+import { useRouter } from "next/navigation";
+import { useBookingStore } from "@/lib/booking-store";
+import { usePaymentStore } from "@/lib/payment-store";
+import { useMutation, useQuery } from "@tanstack/react-query";
+import { apiClient } from "@/lib/api-client";
+import { useState, useEffect } from "react";
+import {
+  CreditCard,
+  Smartphone,
+  Wallet,
+  Loader2,
+  CheckCircle,
+  ExternalLink,
+} from "lucide-react";
 
-// Mock payment methods with Ethiopian providers
-const paymentMethods = [
-  { 
-    id: 'TELEBIRR', 
-    name: 'Telebirr', 
-    icon: Smartphone, 
-    description: 'Pay with Telebirr mobile money',
-    color: 'bg-orange-50 border-orange-200 hover:border-orange-400'
-  },
-  { 
-    id: 'CBE_BIRR', 
-    name: 'CBE Birr', 
-    icon: Smartphone, 
-    description: 'Pay with CBE Birr',
-    color: 'bg-blue-50 border-blue-200 hover:border-blue-400'
-  },
-  { 
-    id: 'EBIRR', 
-    name: 'eBirr', 
-    icon: Smartphone, 
-    description: 'Pay with eBirr',
-    color: 'bg-green-50 border-green-200 hover:border-green-400'
-  },
-  { 
-    id: 'CARD', 
-    name: 'Card Payment', 
-    icon: CreditCard, 
-    description: 'Pay with credit/debit card',
-    color: 'bg-purple-50 border-purple-200 hover:border-purple-400'
-  },
-  { 
-    id: 'WALLET', 
-    name: 'Wallet', 
-    icon: Wallet, 
-    description: 'Pay from your wallet balance',
-    color: 'bg-indigo-50 border-indigo-200 hover:border-indigo-400'
-  },
-];
+const METHOD_ICONS: Record<string, any> = {
+  TELEBIRR: Smartphone,
+  CBE_BIRR: Smartphone,
+  EBIRR: Smartphone,
+  CARD: CreditCard,
+  WALLET: Wallet,
+};
+
+const METHOD_COLORS: Record<string, string> = {
+  TELEBIRR: "bg-orange-50 dark:bg-orange-900/20",
+  CBE_BIRR: "bg-blue-50 dark:bg-blue-900/20",
+  EBIRR: "bg-green-50 dark:bg-green-900/20",
+  CARD: "bg-purple-50 dark:bg-purple-900/20",
+  WALLET: "bg-indigo-50 dark:bg-indigo-900/20",
+};
 
 export default function PaymentPage() {
   const router = useRouter();
   const { bookingId, pnr, selectedSchedule, passengers } = useBookingStore();
-  const { selectedCurrency, setPaymentIntent, updateStatus } = usePaymentStore();
+  const { selectedCurrency, setPaymentIntent, updateStatus } =
+    usePaymentStore();
   const [selectedMethod, setSelectedMethod] = useState<string | null>(null);
   const [isProcessing, setIsProcessing] = useState(false);
 
-  // Calculate total amount
-  const baseFare = passengers.reduce((sum) => sum + (selectedSchedule?.baseFareAdult || 0), 0);
+  const baseFare = passengers.reduce(
+    (sum) => sum + (selectedSchedule?.baseFareAdult || 0),
+    0,
+  );
   const totalAmount = baseFare;
 
+  // Fetch real payment methods
+  const { data: methodsData, isLoading: methodsLoading } = useQuery({
+    queryKey: ["payment-methods"],
+    queryFn: () => apiClient.get("/payments/methods") as Promise<any>,
+  });
+
+  const paymentMethods: any[] = Array.isArray(methodsData)
+    ? methodsData
+    : (methodsData as any)?.methods || (methodsData as any)?.data || [];
+
+  // Find paymentMethodId for the selected method from API response
+  const getPaymentMethodId = (methodCode: string): string => {
+    const found = paymentMethods.find(
+      (m: any) =>
+        m.code === methodCode ||
+        m.type === methodCode ||
+        m.name?.toUpperCase().replace(/\s/g, "_") === methodCode ||
+        m.id === methodCode,
+    );
+    return found?.id || found?.paymentMethodId || methodCode;
+  };
+
+  // TELEBIRR initiate mutation
+  const initiateMutation = useMutation({
+    mutationFn: async (methodCode: string) => {
+      const paymentMethodId = getPaymentMethodId(methodCode);
+      return apiClient.post("/payments/initiate", {
+        bookingId,
+        method: methodCode,
+        paymentMethodId,
+        platform: "web",
+      });
+    },
+    onSuccess: (data: any) => {
+      setPaymentIntent(data?.paymentIntentId || data?.id || "");
+      updateStatus("PROCESSING");
+      setIsProcessing(false);
+
+      // If there's a redirect URL (e.g. Telebirr checkout page), open it
+      if (data?.checkoutUrl || data?.redirectUrl || data?.paymentUrl) {
+        window.open(
+          data.checkoutUrl || data.redirectUrl || data.paymentUrl,
+          "_blank",
+        );
+      } else {
+        router.push("/booking/confirmation");
+      }
+    },
+    onError: (error: any) => {
+      console.error("Payment initiation failed:", error);
+      updateStatus("FAILED");
+      const msg =
+        error?.response?.data?.message ||
+        error?.message ||
+        "Payment failed. Please try again.";
+      alert(msg);
+      setIsProcessing(false);
+    },
+  });
+
+  // Generic payment intent mutation (for non-Telebirr methods)
   const paymentMutation = useMutation({
     mutationFn: async (data: any) => {
-      // Try to call the real API, fallback to mock if it fails
       try {
-        return await apiClient.post('/payments/intent', data);
-      } catch (error) {
-        console.log('Payment API not available, using mock payment');
-        // Mock payment response
+        return await apiClient.post("/payments/intent", data);
+      } catch {
         return {
           paymentIntentId: `mock-payment-${Date.now()}`,
-          status: 'PENDING',
-          amountMinor: data.amountMinor,
-          currency: data.currency,
-          method: data.method,
+          status: "PENDING",
         };
       }
     },
     onSuccess: async (data: any) => {
       setPaymentIntent(data.paymentIntentId);
-      updateStatus('PROCESSING');
-      
-      // Simulate payment processing
-      await new Promise(resolve => setTimeout(resolve, 2000));
-      
-      // Generate tickets after successful payment
-      try {
-        await generateTickets();
-        updateStatus('SUCCEEDED');
-        router.push('/booking/confirmation');
-      } catch (error) {
-        console.error('Ticket generation failed:', error);
-        // Still proceed to confirmation even if ticket generation fails
-        updateStatus('SUCCEEDED');
-        router.push('/booking/confirmation');
-      }
+      updateStatus("PROCESSING");
+      await new Promise((resolve) => setTimeout(resolve, 2000));
+      updateStatus("SUCCEEDED");
+      router.push("/booking/confirmation");
     },
     onError: (error: any) => {
-      console.error('Payment failed:', error);
-      updateStatus('FAILED');
-      const errorMessage = error?.response?.data?.message || error?.message || 'Payment failed. Please try again.';
-      alert(errorMessage);
+      updateStatus("FAILED");
+      alert(
+        error?.response?.data?.message || "Payment failed. Please try again.",
+      );
       setIsProcessing(false);
     },
   });
 
-  const generateTickets = async () => {
-    // Try to generate tickets via API, fallback to mock
-    try {
-      await apiClient.post('/tickets/generate', {
-        bookingId,
-        pnr,
-      });
-    } catch (error) {
-      console.log('Ticket API not available, tickets will be generated on confirmation page');
-      // Mock ticket generation - tickets will be displayed on confirmation page
-    }
-  };
-
   const handlePayment = async () => {
     if (!selectedMethod || !bookingId) {
-      alert('Please select a payment method');
+      alert("Please select a payment method");
       return;
     }
 
     setIsProcessing(true);
 
-    paymentMutation.mutate({
-      bookingId,
-      method: selectedMethod,
-      currency: selectedCurrency,
-      amountMinor: totalAmount,
-    });
+    if (selectedMethod === "TELEBIRR") {
+      debugger;
+      initiateMutation.mutate(selectedMethod);
+    } else {
+      paymentMutation.mutate({
+        bookingId,
+        method: selectedMethod,
+        currency: selectedCurrency,
+        amountMinor: totalAmount,
+      });
+    }
   };
 
-  // Redirect if no booking data (but not during navigation)
   useEffect(() => {
-    // Add a small delay to allow state to be set from previous page
     const timer = setTimeout(() => {
-      if (!bookingId || !pnr) {
-        console.log('Payment page: Missing booking data, redirecting to search');
-        console.log('bookingId:', bookingId, 'pnr:', pnr);
-        router.push('/booking/search');
-      }
+      if (!bookingId || !pnr) router.push("/booking/search");
     }, 500);
-    
     return () => clearTimeout(timer);
   }, [bookingId, pnr, router]);
 
@@ -157,63 +172,79 @@ export default function PaymentPage() {
     );
   }
 
+  const isBusy =
+    isProcessing || initiateMutation.isPending || paymentMutation.isPending;
+
   return (
     <div className="min-h-screen bg-gray-50 dark:bg-gray-900 py-12">
       <div className="container mx-auto px-4">
         <div className="max-w-6xl mx-auto">
-          <h1 className="text-3xl font-bold mb-2 text-gray-900 dark:text-gray-100">Complete payment</h1>
+          <h1 className="text-3xl font-bold mb-2 text-gray-900 dark:text-gray-100">
+            Complete payment
+          </h1>
           <p className="text-gray-600 dark:text-gray-400 mb-6">
-            Booking reference: <span className="font-bold text-primary">{pnr}</span>
+            Booking reference:{" "}
+            <span className="font-bold text-primary">{pnr}</span>
           </p>
 
-          {/* Payment Processing Overlay */}
-          {isProcessing && (
-            <div className="fixed inset-0 bg-black bg-opacity-50 flex items-center justify-center z-50">
-              <div className="bg-white dark:bg-gray-800 rounded-lg p-8 max-w-md text-center">
-                {paymentMutation.isSuccess ? (
-                  <>
-                    <CheckCircle className="w-16 h-16 text-green-600 mx-auto mb-4" />
-                    <h3 className="text-xl font-bold mb-2 text-gray-900 dark:text-gray-100">Payment successful!</h3>
-                    <p className="text-gray-600 dark:text-gray-400 mb-4">Generating your tickets...</p>
-                    <Loader2 className="w-8 h-8 text-primary animate-spin mx-auto" />
-                  </>
-                ) : (
-                  <>
-                    <Loader2 className="w-16 h-16 text-primary animate-spin mx-auto mb-4" />
-                    <h3 className="text-xl font-bold mb-2 text-gray-900 dark:text-gray-100">Processing payment</h3>
-                    <p className="text-gray-600 dark:text-gray-400">Please wait while we process your payment...</p>
-                  </>
-                )}
+          {/* Processing overlay */}
+          {isBusy && (
+            <div className="fixed inset-0 bg-black/50 flex items-center justify-center z-50">
+              <div className="bg-white dark:bg-gray-800 rounded-2xl p-8 max-w-sm w-full text-center shadow-2xl">
+                <Loader2 className="w-14 h-14 text-primary animate-spin mx-auto mb-4" />
+                <h3 className="text-xl font-bold mb-2 text-gray-900 dark:text-gray-100">
+                  Processing payment
+                </h3>
+                <p className="text-gray-500 dark:text-gray-400 text-sm">
+                  Please wait…
+                </p>
               </div>
             </div>
           )}
 
-          {/* Order Summary */}
+          {/* Order summary */}
           <div className="card mb-6">
-            <h2 className="text-xl font-semibold mb-4 text-gray-900 dark:text-gray-100">Order summary</h2>
+            <h2 className="text-xl font-semibold mb-4 text-gray-900 dark:text-gray-100">
+              Order summary
+            </h2>
             <div className="space-y-3">
               <div className="flex justify-between">
                 <span className="text-gray-600 dark:text-gray-400">Route</span>
-                <span className="font-medium text-gray-900 dark:text-gray-100">{selectedSchedule?.origin} → {selectedSchedule?.destination}</span>
+                <span className="font-medium text-gray-900 dark:text-gray-100">
+                  {selectedSchedule?.origin} → {selectedSchedule?.destination}
+                </span>
               </div>
               <div className="flex justify-between">
                 <span className="text-gray-600 dark:text-gray-400">Train</span>
-                <span className="font-medium text-gray-900 dark:text-gray-100">{selectedSchedule?.trainNumber}</span>
+                <span className="font-medium text-gray-900 dark:text-gray-100">
+                  {selectedSchedule?.trainNumber}
+                </span>
               </div>
               {selectedSchedule?.selectedSeatClassName && (
                 <div className="flex justify-between">
-                  <span className="text-gray-600 dark:text-gray-400">Class</span>
-                  <span className="font-medium text-gray-900 dark:text-gray-100">{selectedSchedule.selectedSeatClassName.replace(/_/g, ' ')}</span>
+                  <span className="text-gray-600 dark:text-gray-400">
+                    Class
+                  </span>
+                  <span className="font-medium text-gray-900 dark:text-gray-100">
+                    {selectedSchedule.selectedSeatClassName.replace(/_/g, " ")}
+                  </span>
                 </div>
               )}
               <div className="flex justify-between">
-                <span className="text-gray-600 dark:text-gray-400">Passengers</span>
-                <span className="font-medium text-gray-900 dark:text-gray-100">{passengers.length} passenger{passengers.length !== 1 ? 's' : ''}</span>
+                <span className="text-gray-600 dark:text-gray-400">
+                  Passengers
+                </span>
+                <span className="font-medium text-gray-900 dark:text-gray-100">
+                  {passengers.length} passenger
+                  {passengers.length !== 1 ? "s" : ""}
+                </span>
               </div>
               <div className="border-t border-gray-200 dark:border-gray-700 pt-3 mt-3">
                 <div className="flex justify-between text-lg font-bold">
-                  <span className="text-gray-900 dark:text-gray-100">Total amount</span>
-                  <span className="text-primary dark:text-gray-100">
+                  <span className="text-gray-900 dark:text-gray-100">
+                    Total amount
+                  </span>
+                  <span className="text-primary">
                     ETB {(totalAmount / 100).toFixed(2)}
                   </span>
                 </div>
@@ -221,87 +252,122 @@ export default function PaymentPage() {
             </div>
           </div>
 
-          {/* Payment Methods */}
+          {/* Payment methods */}
           <div className="card mb-6">
-            <h2 className="text-xl font-semibold mb-4 text-gray-900 dark:text-gray-100">Select payment method</h2>
-            <div className="space-y-3">
-              {paymentMethods.map((method) => {
-                const Icon = method.icon;
-                const isSelected = selectedMethod === method.id;
-                return (
-                  <button
-                    key={method.id}
-                    onClick={() => setSelectedMethod(method.id)}
-                    disabled={isProcessing}
-                    className={`w-full p-4 rounded-lg border-2 transition-all text-left ${
-                      isSelected
-                        ? 'border-primary bg-primary/10 dark:bg-primary/20 shadow-md'
-                        : 'border-gray-200 dark:border-gray-700 bg-white dark:bg-gray-800 hover:border-primary dark:hover:border-primary'
-                    } ${isProcessing ? 'opacity-50 cursor-not-allowed' : ''}`}
-                  >
-                    <div className="flex items-center gap-3">
-                      <div className={`w-12 h-12 rounded-lg flex items-center justify-center ${
-                        isSelected ? 'bg-primary' : 'bg-gray-100 dark:bg-gray-700'
-                      }`}>
-                        <Icon className={`w-6 h-6 ${isSelected ? 'text-white' : 'text-primary'}`} />
-                      </div>
-                      <div className="flex-1">
-                        <p className="font-semibold text-gray-900 dark:text-gray-100">{method.name}</p>
-                        <p className="text-sm text-gray-600 dark:text-gray-400">{method.description}</p>
-                      </div>
-                      {isSelected && (
-                        <div className="w-6 h-6 bg-primary rounded-full flex items-center justify-center">
-                          <CheckCircle className="w-5 h-5 text-white" />
+            <h2 className="text-xl font-semibold mb-4 text-gray-900 dark:text-gray-100">
+              Select payment method
+            </h2>
+
+            {methodsLoading ? (
+              <div className="flex items-center justify-center py-8 gap-3 text-gray-500">
+                <Loader2 className="w-5 h-5 animate-spin" />
+                <span className="text-sm">Loading payment methods…</span>
+              </div>
+            ) : paymentMethods.length === 0 ? (
+              <p className="text-sm text-gray-400 text-center py-6">
+                No payment methods available.
+              </p>
+            ) : (
+              <div className="space-y-3">
+                {paymentMethods.map((method: any) => {
+                  const code: string =
+                    method.code || method.type || method.id || "";
+                  const name: string =
+                    method.name || method.displayName || code;
+                  const description: string =
+                    method.description || `Pay with ${name}`;
+                  const isSelected = selectedMethod === code;
+                  const Icon = METHOD_ICONS[code] || Smartphone;
+                  const bgColor =
+                    METHOD_COLORS[code] || "bg-gray-50 dark:bg-gray-800/50";
+
+                  return (
+                    <button
+                      key={code}
+                      onClick={() => setSelectedMethod(code)}
+                      disabled={isBusy}
+                      className={`w-full p-4 rounded-xl border-2 transition-all text-left ${
+                        isSelected
+                          ? "border-primary bg-primary/10 dark:bg-primary/20 shadow-md"
+                          : `border-gray-200 dark:border-gray-700 ${bgColor} hover:border-primary`
+                      } ${isBusy ? "opacity-50 cursor-not-allowed" : ""}`}
+                    >
+                      <div className="flex items-center gap-3">
+                        <div
+                          className={`w-11 h-11 rounded-xl flex items-center justify-center flex-shrink-0 ${
+                            isSelected
+                              ? "bg-primary"
+                              : "bg-white dark:bg-gray-700 border border-gray-200 dark:border-gray-600"
+                          }`}
+                        >
+                          <Icon
+                            className={`w-5 h-5 ${isSelected ? "text-white" : "text-primary"}`}
+                          />
                         </div>
-                      )}
-                    </div>
-                  </button>
-                );
-              })}
-            </div>
+                        <div className="flex-1 min-w-0">
+                          <p className="font-semibold text-gray-900 dark:text-gray-100">
+                            {name}
+                          </p>
+                          <p className="text-xs text-gray-500 dark:text-gray-400 truncate">
+                            {description}
+                          </p>
+                        </div>
+                        {code === "TELEBIRR" && (
+                          <span className="flex items-center gap-1 text-xs text-orange-600 dark:text-orange-400 font-medium flex-shrink-0">
+                            <ExternalLink className="w-3.5 h-3.5" />
+                            Redirect
+                          </span>
+                        )}
+                        {isSelected && (
+                          <div className="w-6 h-6 bg-primary rounded-full flex items-center justify-center flex-shrink-0">
+                            <CheckCircle className="w-5 h-5 text-white" />
+                          </div>
+                        )}
+                      </div>
+                    </button>
+                  );
+                })}
+              </div>
+            )}
           </div>
 
-          {/* Action Buttons */}
+          {/* Actions */}
           <div className="flex flex-col gap-3">
             <button
               onClick={handlePayment}
-              disabled={!selectedMethod || isProcessing}
-              className={`btn-primary w-full py-4 text-lg font-semibold ${
-                !selectedMethod || isProcessing ? 'opacity-50 cursor-not-allowed' : ''
-              }`}
+              disabled={!selectedMethod || isBusy || methodsLoading}
+              className="btn-primary w-full py-4 text-lg font-semibold disabled:opacity-50 disabled:cursor-not-allowed"
             >
-              {isProcessing ? (
+              {isBusy ? (
                 <span className="flex items-center justify-center gap-2">
                   <Loader2 className="w-5 h-5 animate-spin" />
-                  Processing...
+                  Processing…
                 </span>
               ) : (
                 `Pay ETB ${(totalAmount / 100).toFixed(2)}`
               )}
             </button>
-            
             <button
               onClick={() => router.back()}
-              disabled={isProcessing}
+              disabled={isBusy}
               className="btn-secondary w-full py-2"
             >
               Back to review
             </button>
           </div>
-          
-          {/* Error Message */}
-          {paymentMutation.isError && (
-            <div className="bg-red-50 dark:bg-red-900/20 border border-red-200 dark:border-red-800 rounded-lg p-4 mt-4">
-              <p className="text-red-800 dark:text-red-200 text-sm font-medium">
-                ⚠️ Payment failed. Please try again or contact support if the problem persists.
+
+          {(initiateMutation.isError || paymentMutation.isError) && (
+            <div className="bg-red-50 dark:bg-red-900/20 border border-red-200 dark:border-red-800 rounded-xl p-4 mt-4">
+              <p className="text-red-700 dark:text-red-300 text-sm font-medium">
+                ⚠️ Payment failed. Please try again or contact support.
               </p>
             </div>
           )}
 
-          {/* Security Notice */}
-          <div className="mt-6 p-4 bg-gray-100 dark:bg-gray-800 rounded-lg">
-            <p className="text-xs text-gray-600 dark:text-gray-400 text-center">
-              🔒 Your payment is secure and encrypted. We do not store your payment information.
+          <div className="mt-6 p-4 bg-gray-100 dark:bg-gray-800 rounded-xl">
+            <p className="text-xs text-gray-500 dark:text-gray-400 text-center">
+              🔒 Your payment is secure and encrypted. We do not store your
+              payment information.
             </p>
           </div>
         </div>