4 Fintech Terms You Should Get Familiar With
Red Stories
Jan 30th 2024

4 Fintech Terms You Should Get Familiar With

Esther O.
Esther O.

Every industry has words that mean something within the industry that is different from the generally used meaning of the word. In Sociolinguistics, this is called Register. 


Two lawyers could be discussing, using legal terms, and you will not have the faintest idea of what they mean. It is not because they are speaking a different language but because many of the words and phrases they are using have specific meanings within the legal world.


Fintech has its words and phrases too, and while you might not be lost when used, it helps to get familiar with and understand them. Here are four basic and most used terms:


1. Payouts: this term is used for money leaving the system or wallet. The non-fintech word for this is Transfer. It could be a bank transfer or a P2P transfer. But to us in the Fintech space, it is payouts. Another industry term used instead of payouts is disbursements.


2. Collections: this term is used for money coming into the system. In business terms, it is receiving money in your account/wallet. It could be from outside the system or another user on the same platform.


3. VBA: this stands for Virtual Bank Account. It is an account used to fund a wallet. It is not an actual account that retains money; it is merely a channel to fund a wallet on a fintech platform, hence the name virtual bank account.


4. P2P: this stands for peer-to-peer. It refers to a transfer that happens within a platform. The sender and the receiver are both on the platform; the transfer is between two accounts on the same platform. P2P transfer is the best because it has a 99.9% success rate.


These terms are just the ABCs when it comes to fintech-specific terms. If you are not tech-savvy, you will definitely get lost when developers start talking about API integration. But with these, you are good to go for everyday fintech conversations.

Share this article:

More great articles

Redbiller's Workforce -a better way to accept payments

Redbiller's Workforce -a better way to accept payments

As a business, you should be able to offer your customers enough options for them to choose their preferred method. And payment confirmation should not be a problem, especially for bank transfers.

Read Story
Becoming a Global Brand with Waverlite

Becoming a Global Brand with Waverlite

How will you receive payment from your international clients, considering that they cannot simply initiate a transfer from their GT bank app to your First bank account? And they probably use a different currency.

Read Story
A Redbiller Success Story

A Redbiller Success Story

As a service provider, we are constantly working to ensure our customers have all the payment tools they need to manage their time more effectively and put their business on autopilot, so it is indeed a delight to get this type of feedback. Let me share with you Mr Ola’s experience so far at Redbiller and how he arrived at that statement.

Read Story