Real-time Payment Processing
Real-time payment processing is a system that enables immediate transfer of funds between bank accounts, typically within seconds, 24/7. It involves technologies and protocols that facilitate instant authorization, clearing, and settlement of transactions, often used for peer-to-peer transfers, bill payments, and e-commerce. This contrasts with traditional batch processing systems that can take days to complete transactions.
Developers should learn real-time payment processing when building applications requiring instant financial transactions, such as mobile payment apps, gig economy platforms, or online marketplaces. It's essential for improving user experience by providing immediate payment confirmation and reducing fraud risks through real-time validation. Use cases include P2P payments (e.g., Venmo), instant refunds, and real-time payroll systems.