Payments

Payments are the transfer of monetary value from a payer to a payee in exchange for goods, services, debt settlement, or other obligations. They encompass a broad set of instruments and channels, including physical cash, checks, card payments (credit, debit, and charge cards), electronic funds transfers, online payments, and mobile or digital wallet transactions. Payments can be domestic or cross-border, immediate or delayed, and may involve intermediaries such as banks, payment processors, and networks.

A typical payment flow involves initiation by the payer, authentication of the payer and instrument, authorization of the funds, clearing through a payment network, and settlement of funds between institutions. Card payments commonly travel through card networks and processors, while bank-to-bank transfers use networks such as ACH, wire, or real-time rails. Payment data security is maintained through measures such as encryption, tokenization, and fraud monitoring, and standards like PCI DSS and protocols like 3-D Secure help reduce risk.

Regulation seeks to protect consumers, ensure access, and combat fraud and money laundering. Frameworks vary by jurisdiction but often include customer authentication requirements (for example, PSD2 in the European Union) and reporting obligations. Market trends include the growth of real-time and instant payments, the expansion of mobile wallets and contactless payments, and the rise of new models such as buy-now-pay-later services. Cross-border payments continue to face cost and speed challenges, spurring ongoing efforts to harmonize standards and improve interoperability.