Other comprehensive income (OCI)

Other comprehensive income is an accounting measure that includes the revenues, expenses, gains and losses that make up the difference between net income and “comprehensive income” on an income statement. Under…

Outright forward

The outright forward is the simplest type of foreign exchange forward contract. It defines an exchange rate with fixed forward points and a future delivery date. An outright forward…

Over-hedging

Over-hedging is a financial risk protection strategy that involves opening an offsetting position worth more than the underlying position protected. For example, a company in mainland Europe agrees to purchase products…

Over-the-counter derivatives (OTC)

Over-the-counter derivatives (OTC derivatives) are securities that are normally traded through a dealer network rather than a centralised exchange, such as the London Stock Exchange. These securities are referred to as…

P2P Lending

P2P lending or “peer-to-peer lending” is a concept that relates to the practice by which individuals or companies invest into varying projects, mostly through online platforms that connect borrowers with…

Partially convertible currency

A partially convertible currency is the legal tender of a country that is traded in low volumes in the global foreign exchange market. The exchange of the partially convertible currency is…

Participating Forward

A participating forward is a derivative contract that allows the holder to benefit from favourable exchange rate movements for a predefined percentage of the total volume of currency traded in…

Payment automation

Payment automation refers to a system for processing payments through software technology with minimal or no manual interaction. More info International Payments

Payment Batch

Payment batches are arrays of invoices bundled together, according to certain selection criteria, to be paid at the same time to improve process efficiency within the treasury department. More…

Payment File

A payment file or a “batch payment file” is a document, normally produced by payment processing software solutions, specifying the details of each of the individual payments comprised in…

Payment Netting

Payment netting is a treasury procedure that consists of grouping multiple cash flows into a single ‘netted’ amount. This practice allows positive and negative values to offset each other, thereby…

Payment Processing software

The category of payments processing software includes an extensive range of systems that allow companies and individuals to send and receive payments automatically. Within payments processing…

Payment reconciliation software

The category of payment reconciliation software comprises a wide range of technological solutions to automate bank and intercompany reconciliation processes, credit card matching and invoice-to‑PO matching in order to simplify…

Payments factory

A payment factory is an entity that centralises control and management of the processing of payment flows within an organisation. More info International Payments

Peer to peer finance

Peer to peer (P2P) finance is a movement of companies within the alternative fintech sector that connects counterparties directly by cutting out the middleman market maker, usually a bank…