A Payment Service Provider (PSP) is an electronic payment method that enables you to securely accept payments from your customers. There are several different types of PSPs, and you need to know which one is best for your business. The main function of a PSP is to process and authorize payments made online, in-store, or over the phone. A good payment gateway will help reduce cart abandonment, simplify the checkout process, and provide security and fraud protection.
A PSP or Payment Service Provider is a service that allows you to securely accept payments from your customers.
They are responsible for ensuring that your business can accept payments through their platform, which includes the use of blockchain technology as well as other technologies such as QR codes and NFC cards.

Payment Service Providers (PSPs) are used to process and authorize transactions made online, in-store or over the phone. This can be done through physical facilities or online portals.

A payment gateway is software that allows you to accept payments from customers using credit cards or other types of payments, such as PayPal or direct debits from bank accounts. The platform takes care of all the technical details, so all you have to do is focus on growing your business and making sure it continues to work without any complications arising from technology issues or transaction processing errors.
The best way to avoid business disruption is to install a reliable payment gateway that offers features such as high-speed processing and fraud prevention solutions.

A payment gateway is an important element of a business because it consolidates all of your customers' financial information. It is responsible for managing all transactions, including credit cards, bank accounts and mobile wallets.

Problems associated with the use of payment systems:
Payment systems are not secure. This means that anyone with access to your account can get money out of it.

Payment systems are not scalable, meaning if multiple transactions go through the same system, the transaction may fail because the system is overloaded. For example, if someone buys something online with a credit card and then spends another $100 on groceries at a local store, both transactions have to go through separate channels because each channel has its own processor (the e-commerce company and the grocery store). The problem is that there isn't enough bandwidth for all of these transactions, so it's hard to run them simultaneously.

Pros
Reduces the number of payment gateways you need to use. With a PSP, you can securely accept payments from clients through one single gateway, which means you don't have to worry about setting up multiple gateways, which saves time and money.
The security is also taken care of by the PSP (in fact, this is one of the reasons why using a PSP is profitable).

How much does a payment service provider cost
Everyone has their own pricing structure. It's advisable to get a free trial to see how well the service works for you. Some payment gateways charge a monthly fee, while others charge a percentage of each transaction.
Payment service providers can be expensive, but they're worth it if your business needs to accept credit cards or wire transfers from customers who don't want to use PayPal or Google Pay.

How about the prices at card networks
The good news is that credit card processing fees are the same for all PSPs. However, some PSPs charge different rates for debit cards and electronic checks. For example, American Express charges its customers $2 plus 2.9 percent of the transaction amount when using their services for both online transactions and in-store purchases, and when withdrawing money from ATMs in foreign countries.
Some PSPs offer special rates for small businesses or startups that may not be able to afford higher fees, but still need a reliable payment solution.

Length of contract with payment service providers
Can range from 1 month to 3 years, depending on your needs and preferences.
Once you've decided on a specific contract length, it's time to think about what happens at the end of that period. What happens if you want to cancel or extend your contract? What happens if you need help changing payment service providers? How long will it be before there is any change?

Conclusion
The client gets a huge benefit by implementing a payment service that will make life very easy, help to develop business and secure the client base. A good PSP provider will help save money in the long run by reducing transaction costs and offering fraud protection services.