A Payment Services Provider, or PSP, is a service that is set up with the goal for merchants to accept online payments. A PSP goes about as a gateway between a merchant and a bank, as its role is to process transactions from a merchant to a bank or payment network.
Payment Services Provider explained
A Payment Services Provider is essentially a money-related services provider, and the role of the PSP is to go about as a gateway between the merchant and the bank, as the PSP will process the payment that has been received from the bank, and send it to the bank.
A Payment Services Provider enables merchants to accept online payments utilizing a variety of payment methods, including credit cards, bank transfers, and direct debit, among other methods. A PSP can connect to multiple acquiring banks, card and payment networks. The merchant is therefore not required to establish these connections directly, which facilitates payment processing.
Forming a Payment Services Provider means that you should select a suitable purview for your PSP, as this will influence the licensing and formation stages of your PSP. A Payment Services Provider takes into consideration the safe, snappy and correct processing of a payment.