What Is Payment Batching?

Payment batching is a method where multiple Bitcoin payments are combined into one transaction with several outputs. Users can decrease the data processed by grouping several payments, resulting in reduced transaction fees. Instead of creating individual transactions for each payment, batching consolidates them, saving both space on the blockchain and costs. For instance, if someone wants to make three separate payments, batching allows them to use a single transaction with distinct outputs for each recipient, making it more efficient and economical.