A payment service provider, or PSP, is a company that lets many merchants accept payments under its umbrella, using the PSP's own acquiring relationships and bank connections. In the common Stripe or Adyen pattern, a merchant signs up with the PSP and starts accepting cards quickly, without negotiating its own direct acquirer contract. The PSP handles the gateway, processing, onboarding, and payout, and bundles merchants together (a model often called payment facilitation or aggregation). The trade-off is less direct control and a layer of the PSP's pricing in exchange for speed and simplicity.
In a flow
The PSP is a party in the flow, not a money rail. It sits between the merchant and the acquiring bank, capturing and routing the payment message and then paying out the merchant; the underlying money still moves through banks and the card networks' settlement process.
Common misconceptions
Myth: Using a PSP means you have your own acquiring relationship.
Reality: In the typical aggregator model the merchant accepts payments under the PSP's acquiring relationships, not its own. That is what makes onboarding fast, but it means the PSP, not the merchant, holds the direct bank contract.
Myth: A PSP is just a payment gateway.
Reality: A gateway is the checkout tech that captures details. A PSP usually bundles the gateway plus processing, merchant onboarding, risk, and payout under its own acquiring umbrella, so it is a broader role.
Related terms
See it in a guide
Sources
- Visa payment facilitator model ↗ · Visa (operator). How aggregators onboard sub-merchants under their acquiring relationship.
- Mastercard acceptance and facilitator rules ↗ · Mastercard (operator). Network rules for payment facilitators and sub-merchants.
Educational, plain-English explainers. Not legal, compliance, tax, or financial advice. These cover fundamentals, not current fees, limits, or rates (which change). Rails and parties vary by program and country, so verify specifics against primary sources. Last reviewed June 2026.