Fiat Payments
Fiat payments refer to transactions conducted using government-issued currencies, such as the US Dollar, Euro, or Yen, which are not backed by physical commodities like gold. This concept encompasses the electronic processing, transfer, and settlement of these currencies through various systems like credit cards, bank transfers, and digital wallets. It is fundamental to traditional financial systems, enabling everyday commerce, online shopping, and business transactions globally.
Developers should learn about fiat payments when building e-commerce platforms, financial applications, or any system that handles monetary transactions, as it is the standard for most global commerce. Understanding fiat payment integration is crucial for implementing secure payment gateways, complying with financial regulations like PCI DSS, and ensuring smooth user experiences in apps that involve buying, selling, or transferring money. Use cases include online retail, subscription services, and peer-to-peer payment apps.