Payment Initiation Service Provider (PISP)

A payment initiation service provider (PISP) is a regulated firm that, at the customer's request, sends a payment order to the customer's bank so that money moves directly from the customer's account. The PISP never holds the funds; the bank makes the transfer. The service it offers, and how it is used at checkout and for bill payments, is explained in Payment Initiation Service (PIS).

The role was created in European Union law by PSD2 and carried into UK rules, and it is one of the two core open banking roles. The other is the account information service provider, which may only read account data. Banks must let authorised PISPs connect, and the customer still approves each payment with strong customer authentication at their own bank.