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Definition
Payment processors in the software world are responsible for providing solutions to help software developers and businesses perform payment transactions between their systems and customers.
Payment processors provide solutions ranging from one-time card charges to subscription handling. Some go a step further to handle payouts and remittances.
Use cases and Examples
One of the most popular payment processors in the software space is Stripe [↗]. Stripe provides developers with APIs [→] and SDKs [→] that help them quickly integrate card processing functionalities into their apps.
Summary
Payment processors remain in business mostly by charging a processing fee, which usually is a percentage of the overall amount involved in the transaction itself. Businesses and developers are constantly on the lookout for processors with reasonable fees as well as having easy to integrate APIs
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