diff --git a/services/payments/src/test/java/com/klaro/bais/payments/PaymentReferenceServiceTest.java b/services/payments/src/test/java/com/klaro/bais/payments/PaymentReferenceServiceTest.java
new file mode 100644
index 0000000..0995f98
--- /dev/null
+++ b/services/payments/src/test/java/com/klaro/bais/payments/PaymentReferenceServiceTest.java
@@ -0,0 +1,24 @@
+import org.junit.jupiter.api.Test;
+import static org.junit.jupiter.api.Assertions.*;
+
+class PaymentReferenceServiceTest {
+    private final PaymentReferenceService service = new PaymentReferenceService();
+
+    @Test
+    void testNormalize_WithNullInput() {
+        String result = service.normalize(null);
+        assertEquals("", result);
+    }
+
+    @Test
+    void testNormalize_WithEmptyString() {
+        String result = service.normalize(" ");
+        assertEquals("", result);
+    }
+
+    @Test
+    void testNormalize_WithNormalString() {
+        String result = service.normalize("  Test String  ");
+        assertEquals("Test String", result);
+    }
+}
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