PSP (Payment Service Provider)

byPaytm Editorial TeamLast Updated: July 11, 2025

The full form of PSP is Payment Service Provider, a key player in the UPI framework that enables UPI app functionality and user onboarding.

Definition

The definition of Payment Service Provider is a licensed bank that connects UPI apps to the NPCI network and handles backend services such as account mapping and transaction processing.

Key Functions

  • Enables UPI services for users and merchants
  • Manages UPI IDs, PIN setup, and transaction routing
  • Ensures compliance with RBI and NPCI rules

Author

Paytm Editorial Team

The Paytm Editorial Team is a collaborative group of writers, editors, and industry experts. We're dedicated to bringing you the latest insights, news, and guides on digital payments, financial services, and the technology that's shaping India's economy. We offer easy-to-follow guides and insights to help you explore Paytm’s products, features, and services. Our goal is to provide clear, reliable, and helpful information to empower you on your financial journey.

You May Also Like

Low-Value PaymentsLast Updated: September 15, 2025

Meaning Low-value payments are small-sized transactions usually made for everyday expenses. These are quick and often completed without…

UPI Payment ConfirmationLast Updated: September 16, 2025

Definition UPI payment confirmation is the notification received by both payer and payee once a transaction is successfully…

UPI PIN ResetLast Updated: September 16, 2025

Meaning UPI PIN reset is the process of creating or updating your UPI Personal Identification Number (PIN) in…

Dynamic QR GenerationLast Updated: September 15, 2025

Definition Dynamic QR generation refers to the process of creating fresh, transaction-specific QR codes through merchant systems or…

ULIP (Unit Linked Insurance Plan)October 20, 2025

Meaning ULIPs combine financial protection with investment growth potential.Definition A ULIP, or Unit Linked Insurance Plan, is a…