A payment service provider, also known as a PSP, is a third-party financial institution that provides merchants and businesses with a variety of services such as virtual/physical/soft POS provision, payment gateway, card storage, dealer collection platforms, and white-label fintech services.
Working with multiple acquiring banks and payment networks, payment service providers handle the whole transaction process from point A to point B. Additional services, such as fraud protection, risk management, reporting, and fund remittance, are provided to decrease a merchant’s dependency on multiple financial institutions.