A Payment Service Provider (PSP) is a third-party company that helps businesses accept a wide range of electronic payments, including credit cards, debit cards, digital wallets, and bank transfers. A PSP essentially acts as a comprehensive intermediary, combining a payment gateway and a payment processor into a single service.
PSPs vs. Traditional Merchant Accounts
While traditional acquiring banks require businesses to set up individual merchant accounts, many modern PSPs operate on an aggregator or Payment Facilitator (PayFac) model. This means they underwrite thousands of sub-merchants under a single master account, offering a much faster, plug-and-play setup for small to medium-sized e-commerce businesses.
Scaling PSP Operations with Onlayer
PSPs process massive volumes of applications daily and must maintain strict AML and KYM compliance. Onlayer empowers PSPs to scale their merchant acquisition aggressively without needing to add more headcount to operations teams. By auto-classifying merchants instantly as Pass, Pass with Notes, or Fail, Onlayer reduces time-to-decision by up to 85% while giving PSPs full oversight over their workflow.
