Payment Service Provider (PSP)
A payment service provider, or PSP as they are oftentimes called,
is a company that accepts electronic payments for making purchases
or money transfers. The PSP will connect to a bank, credit card
company or a payment network and facilitate the transfer. The
PSP might handle everything so that the merchant and the financial
institution don’t have to worry about the connection.
Some people refer to the PSP as a payment gateway but the better
definition is payment service provider. Some of the PSP companies
will go beyond the basics and also offer other services like fraud
protection, risk management, prepaid cards, etc.
You may not even realize that there are more than 900 payment
service providers around the world. There are more than 300 that
offer services for North America and Europe. Two of the most well
known payment service providers are Neteller and Skill. They have
been providing online payment methods for their customers for
more than a decade.
The next time you transfer money online there is a very good
chance you will be using a payment service provider. It might
be one that has been around for a long time like Neteller or it
might be one of the newer ones like ecoPayz or Ukash. Whatever
your choice, it is nice to know that payment service providers
allow customers to send and receive money online in a matter of