History of Explosive Payload

Explosive Payload is a weapon perk: projectiles create an area-of-effect detonation on impact.

Effect

Direct impact damage is reduced by 50% and replaced by explosive damage equal to 50% (PvP) or 65% (PvE) of the original impact damage (Destiny Game Wiki). If the shot was a precision hit the explosion inherits the precision multiplier, but explosive kills cannot trigger effects that need a precision kill, such as Encore.

Where it appears

The wiki lists it on Hand Cannon Better Devils, Scout Rifles Nameless Midnight, Madrugada SR2, Manannan SR4 and Purpose, and Sniper Rifles Persuader and A Single Clap. Shattered Vault notes it improves body-shot damage in PvE. The wiki page lists no enhanced version. See also Weapon perk.