Written by Modulr | Jul 24, 2025 11:00:00 PM
A Payment Initiation Service Provider (PISP) is a regulated third-party provider that initiates payments on behalf of a user, with the user's consent, directly from their account. PISPs operate under Open Banking regulations, offering an alternative to card payments. A Payment Initiation Service (PIS) is a third-party service that initiates payments on behalf of a user directly from their bank or EMI account. PIS operates under Open Banking regulations and provides an alternative to card payments. A PIS is a regulated financial service provided by Open Banking and authorised third-party providers (TPPs). It allows businesses or consumers to initiate direct payments from a payer's account to a payee, bypassing the traditional card networks entirely and often using near instant rails such as Faster Payments. Modulr provides Payment Initiation Services under Open Banking regulations, allowing businesses to initiate payments directly from customer accounts with lower transaction fees.