Stablecoin Payments Glossary

Address Whitelisting

Address whitelisting is the practice of allowing payments only to pre-approved blockchain addresses.

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Blockchain Address

A blockchain address is a unique identifier used to send or receive digital assets on a blockchain network.

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Checkout Integration

Checkout integration is the embedding of stablecoin payment options into an online or in-app purchase flow.

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Compliance Controls

Compliance controls are operational and technical measures used to meet legal and regulatory requirements in payment systems.

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Counterparty Risk

Counterparty risk is the risk that an intermediary or transaction partner fails to perform its obligations.

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Cross-Border Payments

Cross-border payments are transfers of value between parties located in different countries.

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Custodial Wallet

A custodial wallet is a wallet in which a third-party provider controls the private keys on behalf of the user.

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Digital Wallet

A digital wallet is software that allows users to store, send, and receive stablecoins and other digital assets.

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Escrow Payment

An escrow payment is a payment in which funds are held until specified conditions are satisfied.

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Exchange Rate Lock

An exchange rate lock is a temporary guarantee of a quoted conversion rate during a payment transaction.

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Fiat Conversion

Fiat conversion is the process of exchanging stablecoins or other digital assets into sovereign currency, or vice versa.

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Foreign Exchange Conversion

Foreign exchange conversion is the process of exchanging one currency for another in international payment transactions.

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Internal Ledger Transfer

An internal ledger transfer is a transfer of value recorded within the books of a platform rather than directly on a public blockchain.

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Invoice Generation

Invoice generation is the creation of a payment record specifying what is owed, in what asset, and under what terms.

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Liquidity Provider

A liquidity provider is an entity that supplies the assets needed to facilitate exchange, conversion, or payout in payment systems.

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Mempool

A mempool is the pool of pending blockchain transactions awaiting inclusion in a block.

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Merchant Acceptance

Merchant acceptance refers to the ability of businesses to accept stablecoins as payment for goods and services.

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Merchant Settlement

Merchant settlement is the process through which a merchant receives payment proceeds from a transaction.

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Off-Chain Settlement

Off-chain settlement refers to payment processing or netting that occurs outside the blockchain ledger.

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On-Chain Settlement

On-chain settlement refers to the final recording of a payment transaction directly on a blockchain ledger.

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On-Off Ramp

An on-off ramp is a service that converts between fiat currency and digital assets such as stablecoins.

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Payment API

A payment API is a software interface that enables applications to initiate, monitor, or manage payment transactions.

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Payment Authorization

Payment authorization is the act of approving a transaction so that funds can be transferred.

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Payment Finality

Payment finality is the point at which a payment becomes irreversible and fully settled.

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Payment Gateway

A payment gateway is a technological interface that enables merchants to accept and route digital payments.

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Payment Processor

A payment processor is a service provider that facilitates stablecoin transactions between customers and merchants.

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Payment Request

A payment request is a structured instruction specifying the amount, asset, destination, and other details required for a payment.

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Point-of-Sale Integration

Point-of-sale integration is the connection of stablecoin payment functionality to a physical or digital checkout system.

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Private Key

A private key is a cryptographic credential that allows a user to authorize transactions and control digital assets.

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Programmable Payments

Programmable payments are payments that execute according to predefined software rules or contractual logic.

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Public Key

A public key is a cryptographic identifier used to derive addresses that can receive digital asset transfers.

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QR Code Payment

A QR code payment is a payment method in which transaction details are encoded in a scannable image for wallet-based settlement.

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Recurring Payments

Recurring payments are repeated transfers made on a scheduled basis for subscriptions, services, or contractual obligations.

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Remittances

Remittances are cross-border payments typically sent by individuals to family members or households in another country.

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Self-Custody

Self-custody is the practice of directly controlling the private keys associated with digital assets.

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Settlement Risk

Settlement risk is the possibility that a payment or transfer will not be completed as expected after one party has already performed its side of the transaction.

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Stablecoin Payments

Stablecoin payments are transactions in which stablecoins are used as the settlement asset for transferring value between parties.

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Subscription Billing

Subscription billing is the recurring charging of users for ongoing access to a product or service.

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Transaction Confirmation

Transaction confirmation is the process through which a blockchain network validates and records a payment transaction.

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Transaction Monitoring

Transaction monitoring is the process of reviewing payment activity to detect suspicious, unusual, or policy-relevant behavior.

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Treasury Payments

Treasury payments are transfers made by businesses or institutions for liquidity management, supplier settlement, or internal fund movement.

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Webhook Notification

A webhook notification is an automated message sent from one system to another when a payment-related event occurs.

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