Who initiates the movement.
WHAT A PULL PAYMENT IS
The payee initiates, drawing funds from the payer's account with prior permission.
WHAT EXAMPLES ARE
Card payments Direct debits
WHAT A PUSH PAYMENT IS
The payer initiates, sending funds to the payee.
WHAT EXAMPLES ARE
Bank transfers Mobile money transfers Instant payment schemes
WHY THE DISTINCTION MATTERS MOST
It determines who bears fraud risk and whether the payment can be reversed.
WHAT PULL PAYMENTS PROVIDE
Convenience for recurring collection Consumer protection through reversal rights
WHAT THEY COST MERCHANTS
Chargeback exposure Higher fees
WHAT PUSH PAYMENTS PROVIDE
Finality: once sent, generally irreversible
Lower cost No chargeback risk
WHAT THEY COST
The payer must act Fraud risk falls on the payer, with limited recourse
WHY THAT LAST POINT MATTERS ENORMOUSLY LOCALLY
Push payments dominate here, so a defrauded payer has far weaker protection than a card user elsewhere.
WHAT THAT MEANS FOR PRODUCT DESIGN
Confirmation and verification before sending matter more, not less.
