What is Payment Service Provider - Solidgate

Payment Service Provider


Payment Service Provider (PSP) is a third-party company facilitating 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 (e.g., credit card, debit card, or digital wallet) to the merchant’s account. This process involves several steps, including payment authorization, fraud detection, and settlement of funds into the merchant’s account.

PSPs typically offer various payment processing services, such as payment gateway integration, recurring billing, tokenization, and support for multiple currencies and payment methods. They also ensure compliance with industry regulations and security standards, such as the Payment Card Industry Data Security Standard (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.


Start accepting payments today

Let’s discuss your business needs and we'll give you better fees and conversion rates than you have with your current payment provider.

    By clicking "Get in touch" you agree to our Privacy Policy

    Thank you

    Thank you

    We will contact you shortly. If you have any further questions, please contact us at sales@solidgate.com