Payment systems: what are they and what types exist?

Payment systems are of systemic importance in the global economy, as they ensure the stability and smooth functioning of financial markets by facilitating the efficient and secure movement of money between individuals, companies and financial institutions.

Read on to learn more about how they operate, innovate and enable businesses to grow with local solutions like Rebill. 

What are payment systems?

A payment system comprises the entire infrastructure of technological processes that allow financial transactions such as domestic and international transfers, debit and credit card payments, among other options, to be carried out in a secure and efficient manner.

These systems are the foundation of the global financial system, as they guarantee the flow of capital at all times, reduce risks and facilitate more agile operations.

What payment systems are available?

There are different types of payment systems that are classified according to their scope, processing speed and the type of transactions they support. Among the main payment systems are: 

Low value payment systems

They are the core of financial inclusion and day-to-day operations, as they allow both individuals and companies to access financial services on a massive scale. They are designed to process a large volume of transactions of small or medium amounts, guaranteeing accessibility and coverage.

Among the payment instruments most commonly used in low-value systems are: debit cards, credit cards, ATMs, point-of-sale terminals, checking accounts and direct debit. 

High-value payment systems

They are focused on large-scale transactions, such as interbank transfers, securities settlement or interest rate transactions. Although they are used for any type of payment. 

Their supervision falls to the central banks of each country to ensure financial soundness and stability. For example, in the case of Mexico, the review falls to the SPEI (Interbank Electronic Payments System) of the Bank of Mexico.

Real-time payment systems

They allow for electronic fund transfers that are credited immediately, available 24 hours a day, 7 days a week, both locally and in some international operations. 

They represent a strategic advantage for businesses and users, because they improve liquidity and eliminate delays in the flow of capital. Some international real-time payment systems are:

• SEPA Instant Credit Transfer (Europe)
• PIX (Brazil)
• ACH and Swift (United States)
• CoDi (Mexico)

Digital payment systems

These are solutions driven by fintech innovation and the adoption of open APIs , which have transformed the way consumers and businesses manage their payments.

They work in both physical and digital environments and offer versatility by integrating with e-commerce, digital wallets and mobile payments. Among the most widely used payment methods are: 

1. QR codes.
2. Direct debits.
3. Electronic wallets (Apple Pay, Google Pay, Mercado Pago).
4. E-commerce platforms. 
5. Interoperable systems with clearing houses.

How do the payment systems work?

Although each country has its own infrastructure regulated by central banks and financial institutions, the logic that ensures the proper functioning of payment systems follows the same scheme. This process follows the following steps: 

Payment initiation

The user selects his preferred payment method, which can be credit or debit card, electronic transfer, QR code or direct debit. The payment order is generated from their bank account, digital wallet or point of sale, defining the technological route that the transaction will follow.

2. Processing and transmission

This step depends on the chosen payment method:

• In card payments , the issuing bank and the payment network (Visa, Mastercard, among others) are involved.
• For wire transfers , the connection is established with systems such as SPEI (Mexico), Faster Payments (UK), etc.
• In digital payments, fintech APIs and payment gateways manage secure communication with financial institutions.

3. Compensation

Transactions are grouped and validated in clearing houses or equivalent systems, where volumes and amounts are verified to ensure the integrity of the operations.

4. Settlement

After clearing, the funds are definitively transferred between financial institutions, ensuring that the money actually passes from the payer to the payee. This step can take from seconds to days, depending on the system and region.

5. Confirmation

Finally, both the payer and the receiver receive notification of the status of the transaction, confirming whether it was approved, rejected or requires any additional follow-up. This brings transparency and confidence to the entire process.

Technological innovation in payment systems

Technological evolution has redefined payment systems and the functioning of financial markets, driving a transformation that prioritizes agility, interoperability and security. 

The adoption of new tools has made payments more accessible, immediate and adapted to various business and consumer needs. Some of the most relevant changes are:

• Expanded use of QR codes at physical points of sale, mobile applications and e-commerce platforms, facilitating fast, contactless payments.
• Proliferation of digital wallets and automatic payment options (such as subscriptions or recurring debits), which offer greater convenience and reduce friction in the user experience.
• Integration of open APIs that allow businesses, fintechs and banks to connect their payment services in a secure and flexible way, enabling strategic alliances and continuous innovation.
• Implementation of biometric recognition models (fingerprint, face, voice) to authorize and protect transactions, reinforcing security without losing speed.
• Digitalization of securities clearing and settlement, enabling near real-time processes between local and international financial institutions.
• Development of instant payment platforms (such as PIX, CoDi or Faster Payments) that eliminate waiting times and improve operational liquidity for companies and users.
• Expansion of international payment networks and multicurrency solutions, which streamline global operations and open up new opportunities for foreign trade and cross-border e-commerce.

Integrations with payment systems: charge as local with Rebill

Rebill is the ideal partner for companies and startups looking to operate in Latin America, thanks to its direct integrations with the main payment systems in each country. 

In addition, its infrastructure automates collections and subscriptions, supports payments in local and foreign currencies, and its payment processor easily connects with the most widely used payment methods in each market in the region, optimizing conversion and reducing rejections.

Want to boost your business with localized and reliable payments? Contact us and eliminate friction between different payment services, thanks to our integrations. Sell like a local across Latin America with Rebill!

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