Payment service provider
Also known as: psp
A payment service provider (PSP) is an organization that handles online payments. These could include payments via iDEAL, PayPal, credit card or direct debit. Payment service providers often offer a combination of several payment methods. This way the online store does not have to arrange a separate contract and implementation for each payment method.
Because payment service providers sign large contracts with banks, credit card organizations and the like, the web shop usually pays a lower amount per transaction with a payment service provider than with a direct contract with a bank. This can be advantageous especially for relatively small volumes.
