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What is Path Payment?

Crypto Terms Glossary: What is Path Payment?

Within the Stellar blockchain's technical framework, a path payment refers to a payment that is sent in one currency and received in another (for example a payment sent in USD and received in EUR). Path payments are processed via Stellar's decentralized exchange (DEX), are atomic in nature, and are processed as a single transaction to mitigate the risk of the end user receiving a type of asset that they do no not want. Remember, a path is a specialized type of trade, or chain of trades, that exists on Stellar's SDEX order book (an order book is a list of buy and sell orders for a particular asset).

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