What does payment service provider mean?
A third party that facilitates and helps merchants in the accepting of payments, also known as a PSP. In online shopping, the PSP will provide various methods of payment including direct debit, bank transfer, real-time bank transfers using online banking, and credit card.
A PSP can connect to multiple acquiring banks as well as payment and card networks. By enlisting the services of a PSP, the merchant becomes less dependable on financial institutions to manage transactions, the PSP managing bank accounts as well as relationships with the external network.