Question

1.3.3 study: digital assets and online payment methods
financial literacy
study guide
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review ideas

1. what is a digital payment?
2. give two examples of digital payments.
3. how are debit cards different from credit cards?

Explanation:

1. Defined as a cashless, electronic value transfer for goods/services.
2. Common everyday digital payment tools are listed.
3. Key differences lie in funding source and borrowing mechanism.

Answer:

1. A digital payment is an electronic, cashless transfer of monetary value between parties to pay for goods, services, or obligations, typically processed through digital platforms or networks.
2. - Mobile wallet payments (e.g., Apple Pay, Google Pay)

• Peer-to-peer (P2P) transfers (e.g., Venmo, PayPal)

1. Debit cards draw funds directly from the user's linked bank account, so transactions only use money the user already owns. Credit cards allow the user to borrow money from the card issuer up to a set limit to make purchases, which must be repaid (often with interest if not paid in full by the due date).