What is Payment Service Provider (PSP)? - Ikajo Glossary


Payment Service Provider (PSP)

Payment Service Provider is a company that supports online sellers, merchants and various businesses during the transactions and as a result, makes them more easy and beneficial. Moreover, PSP provides such services as e-wallets, e-checks, and prepaid cards. This provider can be called a mediator between the consumer and business and is responsible for giving the products and obtaining the payment.

Besides the payment services, PSP usually suggests additional services among them the power to convert different currencies, to translate languages as well as to protect from fraud. Fundamentally, this service is a third party that enables traders to receive different payments with the help of one channel only. The provider’s major authority is to collaborate with the acquiring bank from the day the client inserts his/her card data until the money occurs in the trader’s account in the financial organization.

Sellers who cooperate with PSP have more benefits because the fees are much less than the price for individual payment. In addition, traders have no need to set up the method of payment because this system provides and assists in multiple approaches of payment. It can also combine different banks along with payment and card system.

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