diff --git a/src/collections/payments.ts b/src/collections/payments.ts
index 16d5dd3..4fa612f 100644
--- a/src/collections/payments.ts
+++ b/src/collections/payments.ts
@@ -106,6 +106,15 @@ export function createPaymentsCollection(pluginConfig: BillingPluginConfig): Col
       hasMany: true,
       relationTo: extractSlug(pluginConfig.collections?.refunds || defaults.refundsCollection),
     },
+    {
+      name: 'version',
+      type: 'number',
+      defaultValue: 1,
+      admin: {
+        hidden: true, // Hide from admin UI to prevent manual tampering
+      },
+      index: true, // Index for optimistic locking performance
+    },
   ]
   if (overrides?.fields) {
     fields = overrides?.fields({defaultFields: fields})
@@ -144,6 +153,22 @@ export function createPaymentsCollection(pluginConfig: BillingPluginConfig): Col
 
             await initProviderPayment(req.payload, data)
           }
+
+          if (operation === 'update') {
+            // Auto-increment version for manual admin updates (webhooks handle their own versioning)
+            if (!data.version && req.id) {
+              try {
+                const currentDoc = await req.payload.findByID({
+                  collection: extractSlug(pluginConfig.collections?.payments || defaults.paymentsCollection),
+                  id: req.id as any
+                })
+                data.version = (currentDoc.version || 1) + 1
+              } catch (error) {
+                console.warn(`[Payment Hook] Could not fetch current version for payment ${req.id}, defaulting to version 1:`, error)
+                data.version = 1
+              }
+            }
+          }
         },
       ] satisfies CollectionBeforeChangeHook<Payment>[],
     },
diff --git a/src/plugin/types/payments.ts b/src/plugin/types/payments.ts
index 8307679..2d27739 100644
--- a/src/plugin/types/payments.ts
+++ b/src/plugin/types/payments.ts
@@ -48,6 +48,10 @@ export interface Payment {
     | boolean
     | null;
   refunds?: (number | Refund)[] | null;
+  /**
+   * Version number for optimistic locking (auto-incremented on updates)
+   */
+  version?: number;
   updatedAt: string;
   createdAt: string;
 }
diff --git a/src/providers/utils.ts b/src/providers/utils.ts
index 89ff533..7c94b39 100644
--- a/src/providers/utils.ts
+++ b/src/providers/utils.ts
@@ -44,7 +44,7 @@ export async function findPaymentByProviderId(
 }
 
 /**
- * Update payment status and provider data
+ * Update payment status and provider data with optimistic locking
  */
 export async function updatePaymentStatus(
   payload: Payload,
@@ -56,19 +56,42 @@ export async function updatePaymentStatus(
   const paymentsCollection = extractSlug(pluginConfig.collections?.payments || defaults.paymentsCollection)
 
   try {
-    await payload.update({
+    // First, fetch the current payment to get the current version
+    const currentPayment = await findPaymentByProviderId(payload, paymentId.toString(), pluginConfig)
+    if (!currentPayment) {
+      console.error(`[Payment Update] Payment not found: ${paymentId}`)
+      return false
+    }
+
+    const currentVersion = currentPayment.version || 1
+    const nextVersion = currentVersion + 1
+
+    // Atomic update using updateMany with version check
+    const result = await payload.updateMany({
       collection: paymentsCollection,
-      id: toPayloadId(paymentId),
+      where: {
+        id: { equals: toPayloadId(currentPayment.id) },
+        version: { equals: currentVersion }
+      },
       data: {
         status,
+        version: nextVersion,
         providerData: {
           ...providerData,
-          webhookProcessedAt: new Date().toISOString()
+          webhookProcessedAt: new Date().toISOString(),
+          previousStatus: currentPayment.status
         }
       }
     })
 
-    return true
+    // Success means exactly 1 document was updated (version matched)
+    const success = result.docs.length === 1
+    
+    if (!success) {
+      console.warn(`[Payment Update] Optimistic lock failed for payment ${paymentId} - version conflict detected`)
+    }
+
+    return success
   } catch (error) {
     console.error(`[Payment Update] Failed to update payment ${paymentId}:`, error)
     return false