Electronic Payment
A digital method for transferring funds without physical cash or checks, using electronic networks.
What is Electronic Payment?
Electronic payments encompass methods like credit/debit cards, ACH transfers, and mobile wallets, allowing instant fund transfers between parties via platforms such as PayPal or Venmo. In 2025, global electronic payment volumes exceed $10 trillion annually, driven by e-commerce growth and reduced cash usage, with key components including payment gateways, processors, and security protocols like encryption.
In digital asset ecosystems, electronic payments integrate with blockchain for cryptocurrency transactions, enabling peer-to-peer transfers without intermediaries, as seen in stablecoin remittances. Examples include wire transfers for large sums and eChecks for business invoices, with benefits like lower costs (averaging 1-2% fees) and faster settlement times compared to traditional banking.
Related Terms
DLT
Distributed Ledger Technology - a decentralized digital system for recording transactions across multiple computers, ensuring security and immutability.
Fixed Income Security
Debt instruments providing regular interest and principal repayment, like bonds.
Basis Point
A unit of measure equal to one-hundredth of a percentage point (0.01%), used to express changes in interest rates, yields, or spreads in finance.
Reserve Factor (Lending)
A percentage of interest retained by a lending protocol to fund operations or cover losses.
IMF Stablecoin Guidance
International Monetary Fund's recommendations on regulating stablecoins to balance innovation with risks in global finance.
Airdrop
A free distribution of tokens to numerous wallet addresses by blockchain projects to promote awareness, bootstrap liquidity, and reward early user engagement.