Payment service provider

Payment service provider (PSP) is a third-party company that facilitates secure electronic payment transactions between merchants and customers. PSPs act as intermediaries, offering a seamless and efficient payment processing solution for businesses that accept online, mobile, or in-store payments. Aside from allowing businesses to accept card and bank-based payments, payment service providers also offer a range of other services that can improve the payment experience for customers and merchants alike. 

The primary role of a PSP is to securely handle the transfer of funds from the customer's payment method (credit card, debit card, or ) to the merchant's account. This process involves several steps, including payment authorization, detection, and settlement of funds into the merchant's account.

PSPs typically offer various payment processing services, such as integration, , , and support for multiple currencies and payment methods. They also ensure compliance with industry regulations and security standards, such as the (PCI DSS), to protect sensitive financial data.

By outsourcing payment processing to a PSP, merchants can benefit from enhanced security, reduced operational costs, and improved customer experience. Additionally, PSPs often provide valuable insights and analytics to help merchants optimize their payment processes and make data-driven business decisions.

Notable examples of PSPs include PayPal, Stripe, Adyen, Braintree, and Authorize.net, among others.