PSP

Category: Payments

Also searched as: Payment service provider

Definition (plain English)

A payment service provider connects merchants to payment methods, gateways, acquiring, risk controls, settlement, and reporting.

Why it matters commercially

The PSP affects checkout acceptance, settlement timing, supported currencies, fraud controls, dispute workflow, and operating visibility.

Example

A cross-border seller chose a PSP that could settle in EUR while accepting local payment methods in its target markets.

Common mistake

Selecting a PSP on fee alone without checking acceptance rates, payout timing, dispute tools, country coverage, and integration support.

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