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The Payment API is a simple framework for multiple payment methods (invoice, Beanstream, etc.) and payment types (purchase of a node publication, etc.).
The Ubercart Userpoints Discount module makes it possible for customers to add items to their shopping carts that are discounted based on the number of userpoints they have. Discounts are enabled for individual products on their node edit forms, causing a second submit button to be added to the product's add to cart form that adds the product to the shopping cart with the discount. The value of userpoints are specified as a conversion rate against the dollar (or your store's currency) in an administration form.
This module should not be confused with a full Userpoints integration. This module requires Ubercart to run!