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hi im rainey with finance strategist in this lesson were going to cover [Music] a payment method is the way an individual pays for goods and services payment methods evolved from a barter system into either instant forms of payment such as cash debit cards and wire transfers for larger purchases or commitments to pay in the future such as a credit card or a payment plan all modern payment methods fulfill the role of transferring some amount of currency from one entity to another cash and coins have physical numbers on them representing a value so that when an individual pays for goods they are transferring that amount of wealth to the vendor they are purchasing from similarly electronic payment methods transfer a digital representation of wealth from the purchaser to the vendor this is usually accomplished via a point of sale system or pos credit cards are a commonly accepted payment method although the individual does not pay until later credit card companies such as banking instit