Settlement is the second phase of the clearing and settlement process.
It involves the actual transfer of money or assets from one party to another, based on the approved and matched payment instructions from the clearing process. During settlement, it is ensured that the necessary funds or assets are transferred correctly and in accordance with the agreed terms. Settlement can take place either in real time, where the payment is made immediately, or at a later time, depending on the specific payment system and the type of payment being carried out.