PSP vs Payment Gateway vs Payment Processor

What does PSP mean in banking?

PSP stands for Payment Services Provider. It's a regulated entity that provides payment services such as accepting card payments, initiating bank transfers, or providing account information. Banks, fintechs, and payment companies can all be PSPs.

What's the difference between a PSP and a bank?

A bank (ASPSP) holds customer deposits and provides accounts, while other PSPs (like AISPs and PISPs) provide services on top of bank accounts but don't hold deposits themselves. Banks are one type of PSP, but not all PSPs are banks.

How do I become a PSP?

To become a PSP, you must apply for authorization from your country's financial regulator (e.g., FCA in UK, BaFin in Germany). Requirements include minimum capital, professional indemnity insurance, compliance systems, and demonstrating IT security capabilities.

What services do PSPs provide?

PSPs can provide: payment account services, payment execution (transfers, direct debits), payment card issuing and acquiring, money remittance, account information services (AIS), and payment initiation services (PIS).

Is Stripe a PSP?

Yes, Stripe is a licensed PSP (Payment Services Provider) in multiple jurisdictions. They are authorized as an Electronic Money Institution (EMI) in Europe and hold relevant licenses in the US, UK, and other regions.