A payment protocol is a defined set of rules and message formats governing how value transfer is initiated, authorised and settled between parties.
Semantic Classification
Content
- Payment protocols specify the sequence of messages, data structures and validation rules used to move funds. They cover authorisation, clearing and settlement, and define how parties confirm and record transactions.
- Protocols range from established interbank standards to blockchain-based mechanisms. Cryptographic techniques are used to authenticate participants and protect the integrity of payment instructions.