Payment Service Provider (PSP)
A Payment Service Provider (PSP) is a company that provides businesses with the services and infrastructure needed to accept and process electronic payments. This can include providing payment gateways, merchant accounts, and payment processing services.
PSPs play a crucial role in the e-commerce ecosystem as they bridge the gap between businesses and the financial institutions that process payments. They typically offer a variety of payment methods, including credit and debit cards, bank transfers, and alternative payment methods, making it easier for businesses to cater to a global audience.
Additionally, PSPs often provide fraud detection and prevention services, helping to protect businesses and their customers from unauthorized transactions. Some PSPs also offer additional services such as subscription billing, multi-currency processing, and mobile payments.
By outsourcing payment processing to a PSP, businesses can focus on their core activities while ensuring that their payments are handled securely and efficiently.