Payment ID is an **arbitrary** and **optional** transaction attachment that consists of 32 bytes (64 hexadecimal characters).
It is usually used to identify transactions to merchants and exchanges: Given the intrinsic privacy features built into Monero, where a single public address is usually used for incoming transactions, the Payment ID is especially useful to tie incoming payments with user accounts.
### Creating a Payment ID
One can create a Payment ID quickly from the command line using OpenSSL: