Online stored value payment system
Preloaded value held in digital accounts.
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Stored value payment flow (PayPal)
Value stored in an online account is used to pay merchants or peers.
The consumer first loads funds into a stored value account (such as PayPal) from a bank account or card. When making a payment, the consumer instructs the stored value system (often by entering the recipient's email), and the system instantly transfers value from the stored balance to the merchant or peer — without sharing the consumer's card details with the recipient.
Explanation: The consumer first loads funds into a stored value account (such as PayPal) from a bank account or card. When making a payment, the consumer instructs the stored value system (often by entering the recipient's email), and the system instantly transfers value from the stored balance to the merchant or peer — without sharing the consumer's card details with the recipient.