---
title: "What is Delivery versus payment? | IslamicOpenFinance™"
description: "A settlement mechanism that delivers securities only if payment is made, and makes payment only if delivery occurs."
url: https://islamicopenfinance.com/glossary/delivery-versus-payment/
lang: en-GB
source: "IslamicOpenFinance"
---

[Glossary](https://islamicopenfinance.com/glossary/) / [Calendar, settlement and markets](https://islamicopenfinance.com/glossary/#calendar)

Calendar, settlement and markets

# Delivery versus payment

A settlement mechanism that delivers securities only if payment is made, and makes payment only if delivery occurs.

Delivery versus payment is a settlement mechanism that links the transfer of securities with the transfer of funds, so that delivery occurs if and only if payment occurs. It removes the risk that one party delivers and the other does not. IFSB-26 applies it to financial market infrastructures handling Islamic instruments such as sukuk, alongside the other international principles for settlement systems.

## Sources

- [IFSB-26 Core Principles for Islamic Finance Regulation (Financial Market Infrastructures), 2021: Principle 12, Exchange-of-value settlement systems](https://www.ifsb.org/wp-content/uploads/2023/10/IFSB-26_En.pdf)

This entry explains a term; it is not a Shariah ruling. Approving a product is for each institution's own Shariah board and regulator.

## Related terms

[**Settlement finality** The point at which a transfer becomes irrevocable and unconditional, so it cannot be unwound even if a participant fails.](https://islamicopenfinance.com/glossary/settlement-finality/) [**Value date** The date on which a payment or transfer is due to take effect and funds become available to the receiver.](https://islamicopenfinance.com/glossary/value-date/) [**Sukuk** Certificates of equal value representing undivided shares in the ownership of assets, usufruct, services or a project.](https://islamicopenfinance.com/glossary/sukuk/)

**Calendar, settlement and markets**

1. [Hijri calendar](https://islamicopenfinance.com/glossary/hijri-calendar/)
2. [Lunar month](https://islamicopenfinance.com/glossary/lunar-month/)
3. [Hawl](https://islamicopenfinance.com/glossary/hawl/)
4. [Moon sighting](https://islamicopenfinance.com/glossary/moon-sighting/)
5. [Business day](https://islamicopenfinance.com/glossary/business-day/)
6. [Value date](https://islamicopenfinance.com/glossary/value-date/)
7. [Settlement finality](https://islamicopenfinance.com/glossary/settlement-finality/)
8. [T+n settlement](https://islamicopenfinance.com/glossary/t-plus-n/)

[All 221 terms](https://islamicopenfinance.com/glossary/)