Description: The blog is about the economics of the information technology, focusing mainly on Microsoft technologies like SharePoint.
Practical notes on Enterprise software systems and the economics of software.
Payment versus payment (PVP) is a type of settlement process used in financial transactions. In a PVP transaction, the delivery of one asset is contingent upon the simultaneous receipt of another asset. This means that both parties involved in the transaction must make their payments at the same time, with the delivery of each asset occurring only when the corresponding payment has been received.
The purpose of PVP is to reduce the risk of settlement failure and ensure that both parties are protected against credit risk. By requiring both parties to make their payments simultaneously, PVP transactions eliminate the risk that one party will make a payment but not receive the corresponding asset, or receive an asset but not make the corresponding payment.