A system and method for providing service component architecture (SCA) data transformation in a distributed transaction processing environment. In accordance with an embodiment, an SCA software component can be used to provide a service to transform data and requests from a service-oriented data format to a transactional data format, such as a Tuxedo or other format. In accordance with an embodiment, a configuration file, such as a schema file, is used to define the transformation between the service-oriented and transactional data formats. The SCA software components operate to communicate with a transaction component, perform the data transformation automatically, and support a transaction process on the transaction component.