What is a payment service provider and how do they work?

The payments industry is constantly developing and becoming intricate and complex over time. Since the first credit card terminal was introduced back in 1979 by Visa, the technology, terminology, and ways people can pay has evolved greatly. 

For businesses, this means a lot of juggling and navigating to ensure successful payments; from maintaining connections with card networks and security to letting customers pay how they want. 

This is where a payment service provider (PSP) comes in to make business’ lives easier. They play a pivotal role in generating revenue and creating memorable customer experiences.

But what exactly is a PSP; how do they work, and what core benefits do they bring to the table?