What does a payment service provider do?

A payment service provider (PSP) primarily processes electronic payment transactions. This includes facilitating the movement of funds between customers and merchants, enabling businesses to accept various forms of payment such as credit and debit cards, mobile wallets, and online payment systems. The core function of a PSP is to ensure that these transactions are completed securely and efficiently, often managing the complexities involved in processing payments, including encryption and compliance with various financial regulations.

While options related to point-of-sale machines, marketing support, and customer service may be relevant functions in the broader context of payment systems, they do not encapsulate the primary role of a payment service provider. The main focus remains on the processing of electronic payment transactions, which is crucial for enabling smooth and reliable commerce in both physical and digital marketplaces.