Stablecoin Payments Glossary
Payment Authorization
Payment authorization is the act of approving a transaction so that funds can be transferred.
Explanation
In stablecoin systems, authorization typically occurs when a wallet holder signs a transaction or grants an application permission to initiate one. Authorization models vary between self-custodial, custodial, and smart contract-based systems.
Why it matters
Authorization design affects security, usability, and the practicality of consumer payment experiences.
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