Definition:
Payment compliance refers to the adherence to financial regulations governing payment services, including AML, data security, and consumer protection requirements.

Contextual Explanation:
Payment service providers must meet regulatory standards set by bodies like the Financial Crimes Enforcement Network (FinCEN) in the U.S. and the Reserve Bank of India (RBI) to operate legally.

Why It Matters:
Strict payment compliance ensures financial stability, protects consumers, and prevents illegal activities such as money laundering and fraud.