A digital payment — also known as an electronic payment — is a payment made via a digital device, such as a phone or computer.
When someone pays for a product or service digitally, whether they’re purchasing something online or in-person, they do not exchange cash. This is known as a digital payment.
Instead, they transfer payment from one device to another via their banking information, which is sent through a credit card, a debit card, a digital wallet, a contactless payment method, or a direct bank account transfer.
People can also send a digital payment through processing services like Venmo, PayPal, or Zelle. For a business to accept a digital payment, they need a processing tool, such as a point-of-sale (POS) system or a QR code setup.
Because they’re processed almost instantly, digital payments are typically quicker than cash transactions — enabling businesses and consumers alike to benefit from the speed and convenience of ecommerce.
Digital payment options are likely to only increase in the future, largely due to the efficiency, organization, and ease they offer.