P fintech glossary terms

P/E Ratio

Price to Earnings ratio.

P2P Network

Network of peers sharing resources.

PaaS

Platform as a Service.

pacs.008

An ISO 20022 financial message used for customer credit transfer instructions in payment processing.

pacs.009

An ISO 20022 financial message typically used for financial institution credit transfers.

Parallelism

Executing tasks simultaneously.

Parametric Insurance

Payout based on event trigger.

Pareto Efficiency

Cannot help one without hurting another.

Partial Refund

A refund where only part of the original transaction amount is returned to the customer.

Payment Facilitator

A provider that enables sub-merchants to accept card payments under a master merchant account.

Payment Gateway

Service processing credit card transactions.

Payment Initiation Service Provider (PISP)

A regulated third party that can initiate a payment from the customer's bank account with the customer's consent.

Payment Orchestration

The coordination layer that routes, retries, and optimizes transactions across multiple payment providers.

Payment Processor

A provider that processes payment transactions between merchants, acquiring partners, networks, and issuers.

Payout Ratio

Percentage of earnings paid as dividends.

Paytech

Technology for payments.

PCI DSS

Payment Card Industry Data Security Standard.

Peer Review

Evaluation by others in the same field.

Peer-to-Peer

Decentralized interactions.

Peer-to-Peer (P2P)

Direct interaction between two parties.

Peer-to-Peer Insurance

Individuals pooling risk.

Peer-to-Peer Lending

Direct lending between individuals without banks.

PEG Ratio

P/E ratio divided by growth rate.

Penetration Testing

Simulated cyberattack to find vulnerabilities.

Penny Stock

Low-priced, speculative stock.

Pension Fund

Fund for retirement.

PEP

Politically Exposed Person.

Phillips Curve

Relation between inflation and unemployment.

Phishing

Fraudulent attempt to obtain sensitive information.

Pip

Smallest unit of price change in Forex.

Pivot

Change in business strategy.

PoA

Proof of Authority.

Poison Pill

Tactic to prevent takeover.

Policy

Contract between insurer and policyholder.

Policyholder

Person owning insurance.

Polymorphism

Objects taken on many forms.

Ponzi Scheme

Paying old investors with new money.

Portfolio

A collection of financial investments.

POS

Point of Sale.

PostgreSQL

Advanced open source relational database.

Predatory Lending

Unfair loan terms.

Prediction Market

Market betting on outcomes of future events.

Predictive Analytics

Using data to predict future outcomes.

Premium

Amount paid for an insurance policy.

Price to Book

Market price / Book value.

Price to Sales

Market cap / Revenue.

Primary Key

Unique identifier for a record in a table.

Principal

Original sum invested/lent.

Privacy Coin

Crypto hiding transaction details.

Private Cloud

Cloud used by a single org.

Private Equity

Capital invested in private companies.

Private Key

Code allowing access to cryptocurrency funds.

Private Sale

Token sale for strategic investors.

Process

Program in execution.

Processing Currency

The currency used when the transaction is routed, authorized, and processed through the payment system.

Product Market Fit

Being in a good market with a product that can satisfy that market.

Production

Live environment for users.

Prompt Engineering

Crafting inputs to guide AI responses.

Proof of Authority (PoA)

Consensus based on reputation of validators.

Proof of Reserves

A verification method showing that a custodian or exchange controls enough assets to back customer balances.

Proof of Stake (PoS)

Consensus based on validators holding coins.

Proof of Work (PoW)

Consensus requiring computational effort.

Property Tax

Tax on real estate.

Proprietary

Software owned by an individual or company.

Proptech

Technology in real estate.

Proto-Danksharding

Ethereum scaling proposal EIP-4844.

Protocol

Set of rules for data exchange.

PSD2

Payment Services Directive 2.

Public Cloud

Cloud services available to everyone.

Public Key

Code used to receive cryptocurrency.

Public Sale

Token sale open to the general public.

Pump and Dump

Manipulating price up then selling.

Purchasing Power Parity

Comparing currency buying power.

Purchasing Power Parity (PPP)

Theory comparing currencies through a "basket of goods".

Put Option

Right to sell.

Puttable Bond

Bond holder can sell back early.

Pyramid Scheme

Recruiting members for money.