Centralized Payments
Centralized payments refer to a financial system where all payment transactions are processed, managed, and controlled through a single, central authority or platform. This approach consolidates payment processing, reconciliation, and security measures into one unified system, often used by businesses to streamline operations. It contrasts with decentralized or distributed payment models, offering centralized oversight and simplified management.
Developers should learn about centralized payments when building or integrating financial systems for e-commerce, banking, or enterprise applications that require unified transaction handling. It's crucial for scenarios involving high-volume payment processing, regulatory compliance (e.g., PCI DSS), and systems where centralized fraud detection and reporting are needed. Understanding this concept helps in designing scalable payment architectures and integrating with payment gateways like Stripe or PayPal.