Which of the following is a characteristic of traditional payment systems?

The characteristic of traditional payment systems being that all participants connect to a central system is correct because traditional payment systems are typically structured around a centralized network. This means that all transactions are managed through a central authority or institution, such as a bank or a payment processor, which oversees the movement of funds and ensures the integrity and security of the payment process. This central authority acts as an intermediary, facilitating transactions between parties, verifying payment details, and maintaining a record of all transactions.

This centralized approach has been a hallmark of traditional systems, such as credit card networks and bank transfer systems, where the reliance on a central entity helps streamline the process but can also lead to bottlenecks and delays due to the volume of transactions processed through that central system. The other options reflect characteristics that are more associated with decentralized or emergent payment technologies rather than traditional methods.