Finance and fintech glossary

Banks offer services such as payments, balance checks and account opening through secure APIs. Businesses then build those services straight into their own apps and software.

A reversal of a card payment. The cardholder's bank starts it after the customer disputes a charge, and the money moves back from the merchant.

The US Federal Reserve's instant payment service, launched in July 2023. Banks and credit unions use it to move money between accounts in seconds, any time of day.

The fee a card issuer earns on each card payment. The merchant's bank pays it, and the cost reaches the merchant as part of its card processing fees.

Know Your Customer. These are the identity checks a bank, fintech or exchange runs before it opens an account for someone.

Merchant discount rate. The total fee a merchant pays to accept a card or digital payment, usually a percentage of each sale. Try the UPI MDR calculator.

National Payments Corporation of India. It runs UPI, RuPay and other retail payment systems in India.

Rules and technology that let you share your bank data, or start a payment, through a licensed third-party app with your permission.

Person-to-person payments move money between individuals. Person-to-merchant payments go from a customer to a business.

A company that lets merchants accept many payment methods through one integration. It collects the money and then settles it to the merchant.

The technology that securely captures payment details at checkout and sends them for approval.

An API that lets a business send money in bulk to vendors, customers or staff, straight from its own systems.

Brazil's instant payment system, run by the central bank since November 2020. It moves money in seconds using a phone number, email or QR code.

Payments that move from one bank account to another in seconds, 24 hours a day. UPI, Pix, FedNow and SEPA Instant are examples.

Matching payments received or sent against invoices, orders and bank records, so every number in the books agrees.

The euro area's instant transfer scheme. Since 9 October 2025, eurozone banks must let customers send instant euro transfers for no more than a standard transfer costs.

The step where money from a payment actually moves into the merchant's bank account, usually a set time after the customer pays.

Unified Payments Interface. India's real-time payment system moves money between bank accounts through a mobile app, any time of day.

A UPI feature that lets customers approve recurring payments, such as subscriptions, once. Payments then run automatically on schedule.

Central bank digital currency. It is a digital form of a country's money, issued by its central bank. India's e-rupee and China's e-CNY are examples.

Software or a hardware device that stores the private keys you need to access and move crypto assets.

Decentralised finance. It covers lending, trading and other financial services built on public blockchains without a bank in the middle.

The US law, signed in July 2025, that sets federal rules for payment stablecoins. It requires full reserves and bans issuers from paying holders interest.

The interest a stablecoin issuer earns on the cash and short-term government bonds that back its coins. It is the main way issuers make money.

A list of words that can restore a crypto wallet. Anyone who has it can control the funds, so it should never be shared.

A cryptocurrency designed to hold a steady value, usually by tracking a currency such as the US dollar.

A payment some exchanges and apps make to users who hold stablecoins. It is funded by a share of the issuer's reserve income, not paid by the issuer directly.

Turning a real-world asset, such as a bond or a share, into a digital token on a blockchain so it can be traded or settled faster.

Annual percentage rate. The yearly cost of borrowing, including interest and most fees, shown as a percentage so loans are easier to compare.

Buy now, pay later. A short-term loan at checkout that splits a purchase into instalments, often interest-free if you pay on time.

The UK legal name for interest-free BNPL repaid in 12 or fewer instalments within 12 months. The FCA has regulated it since 15 July 2026.

Gross merchandise volume. The total value of purchases made through a platform, before fees and refunds.

The share of each sale that a payment or BNPL company keeps as revenue, usually shown as a percentage of GMV.