Digital payments are financial transactions that happen electronically without using physical cash or paper checks. These transactions rely on digital devices such as smartphones, computers, tablets, or payment terminals connected to the internet or other digital networks. A digital payment occurs any time money moves electronically from one person or business to another. This includes payments made through card networks like Visa or Mastercard, mobile apps such as Apple Pay or Google Pay, direct bank transfers, or digital wallets.
Unlike traditional payment methods, digital payments happen without exchanging physical items. They are processed quickly, can be tracked in real time, and often connect directly with business systems for easier recordkeeping.
Common examples of digital payments include:
- A customer tapping a phone to pay at a coffee shop
- A business paying a supplier through an online bank transfer
- An online shopper checking out with a saved credit card
- Friends splitting a dinner bill using a peer-to-peer app like Venmo
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