Quite simply, it’s a way to make transactions simpler and smoother. In general, there are two different types of payment solutions: those that provide payment processing capabilities, and those that manage payments in the background. Examples of solutions providing payment processing include credit card terminals, point-of-sale systems, mobile wallets, and online checkout systems.

In contrast, solutions managing payments in the background come in many forms such as online payment processors, payments networks, merchant acquiring services, and transaction processors.

What all of these solutions have in common is that they simplify the process of making payments from one person or entity to another. Companies who want to provide their customers with an efficient way to receive payments often use one or more of these solutions to speed up the process and make the experience even easier.