Payment Service Provider (PSP)

A Payment Service Provider (PSP) is a third-party financial technology company that enables merchants to accept and process electronic payments from customers, acting as a crucial intermediary that securely connects the merchant's e-commerce platform to various financial networks, including card schemes, banks, and digital wallets. PSPs streamline the entire transaction lifecycle, from authorization and settlement to fraud management and multi-currency support, allowing businesses to operate globally without needing to establish direct relationships with every card network or acquiring bank.