# Payment Service Provider (PSP)

> A payment service provider (PSP) is a third-party company that enables merchants to accept electronic payments by connecting them to payment networks, acquiring banks, and alternative payment methods.

- **URL**: https://dodopayments.com/glossary/payment-service-provider

---

## What is Payment Service Provider (PSP)?

A Payment Service Provider (PSP) is a company that offers merchants a complete solution for accepting electronic payments. They handle the technical connection to multiple card networks and banks, simplifying the payment process for the business.

PSPs often provide additional services like fraud detection, reporting, and currency conversion. By using a PSP, a merchant can accept many different payment methods through a single integration.

### Why It Matters

- Simplifies the complexity of connecting to multiple banks and networks

- Provides a unified platform for managing all types of customer payments

- Offers built-in security and compliance tools like PCI DSS support

- Enables faster time-to-market for businesses looking to accept payments

## Learn More

- [How to accept online payments globally](https://dodopayments.com/blogs/how-to-accept-online-payments)
- [Best payment methods for SaaS businesses](https://dodopayments.com/blogs/best-payment-methods-for-saas)
- [Payment gateway comparison for modern SaaS](https://dodopayments.com/blogs/payment-gateway-comparison)