Why were high-value and low-value payment types developed?

High-value and low-value payment types were developed primarily to provide consumers with more payment options tailored to their specific needs and transaction requirements. High-value payment types, such as wire transfers and large-value payment systems, facilitate the movement of significant sums of money, typically used in business transactions or large purchases. This is essential for corporate clients, banks, and financial institutions that need to make high-stakes payments quickly and securely.

Conversely, low-value payment types, such as electronic transfers, credit and debit card transactions, and mobile payments, are aimed at everyday consumers for smaller transactions. These facilitate convenience and efficiency in daily purchasing activities, catering to the growing demand for frictionless, speedy payment methods.

The development of these varied payment types reflects the evolution of payment systems to meet the diverse needs of consumers and businesses alike, ensuring that each stakeholder has access to the most appropriate and efficient payment solution for their respective situations.