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Definition: Residual Payment
Residual Payment is a payment method where a payment (and often subsequent streams of payment) is received after the delivery of a good or a service. Loan payment after the procurement of the property for which the loan was taken is a form of residual payment.
Residual payment is a common mode of payment in several industries. Industries where revenue is generated by a product over a long period of time often use this kind of payment. For example, music industry and book publishing industry. A music album released in 1960 can receive residual payment if any of its songs is used in a present day movie or album.