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What is a payment service provider (PSP)? A plain-English guide for businesses

By SendPay Business · · 2 min read

Get paid with a link
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  2. Send it in a chat or an email
  3. They tap, pay, and you see it

A payment service provider, or PSP, is a firm that lets a business take payments from customers, by card, bank transfer, wallet or link, without setting up each of those connections itself. Most small businesses that take card payments online use one.

What a PSP does

  • Gives you a way to take payments: a checkout, a payment link, an invoice or a card machine.
  • Passes each payment to the card networks or banks, and checks it for fraud.
  • Collects the money and pays it out to your bank account, minus its fees.
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PSP, gateway, acquirer: what's the difference?

A gateway is the technology that carries a payment from your checkout. An acquirer is the licensed firm that processes card payments for a business. A PSP usually bundles both, and often more, into one account so you don't need separate contracts.

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What it does

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What it costs

Most PSPs charge a percentage of each payment, often with a small fixed fee, and some add monthly fees or charges for refunds and disputes. Compare the total you keep, not just the headline rate.

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How to choose

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Tick each step as you do it, so you can see what is left.

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How it works

Your own money app
  1. Name it and pick your colours
  2. Choose what it does
  3. Launch when you are ready

Why sign up

Create your free SendPay account

It's all about creating your own financial platform with ease. Start with a free account today.

  • A free business accountOpen it in about a minute with your business name, email, password and mobile. No card and no documents to start.
  • Get paid from day oneTake card payments, and share your own payment link and invoices so customers pay in a click.
  • A free business websiteFree to build, free to publish and free to keep, with unlimited visits.
  • Your own financial platformDesign and preview your whole platform free, then launch when you are ready.

SendPay Business is a technology company, not a bank. Accounts, cards and payments are powered by licensed partners.

Questions people ask

What will card fees cost me?

The card fee calculator shows what you keep from each payment after the percentage and fixed fee.

Card fee calculator →
Do I need a card machine?

Not always. Payment links and invoices let you get paid by card without one.

Card machine alternatives →
Can I become a payments company myself?

Yes. SendPay builds branded payment platforms, powered by licensed partners. It is free to design and preview, and you launch when you are ready.

Start a payments company →

Read next

Spotted a mistake or something out of date? and we'll fix it. How our guides are made

This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. Other companies named in this guide are reference points only and are not affiliated with SendPay Business.