Digital payment processing refers to the electronic handling of transactions between buyers and sellers. It involves the use of technology to facilitate payments through various methods, such as credit cards, mobile wallets, and online banking. This process ensures that funds are transferred securely and efficiently, allowing for quick and convenient purchases. The system typically includes several components, such as payment gateways, which authorize transactions, and payment processors, which manage the transfer of funds. Companies like PayPal and Stripe provide these services, making it easier for businesses to accept payments online and for consumers to shop without cash.