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medusa-store/www/apps/resources/app/commerce-modules/payment/payment-provider/page.mdx
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export const metadata = {
title: `Payment Provider`,
}
# {metadata.title}
In this document, youll learn what a payment provider is.
## What's a Payment Provider?
A payment provider handles payment processing. It can integrate third-party payment providers, such as Stripe or PayPal.
To authorize a payment amount with a payment provider, a payment session is created and associated with that payment provider. The payment provider is then used to handle the authorization.
After the payment session is authorized, the payment provider is associated with the resulting payment and handles its payment processing, such as to capture or refund payment.
---
## System Payment Provider
The Payment Module provides a `system` payment provider that acts as a placeholder payment provider. It doesnt handle payment processing and delegates that to the merchant. It acts similarly to a cash-on-delivery (COD) payment method.
---
## How are Payment Providers Created?
A payment provider is a TypeScript or JavaScript class that extends the `AbstractPaymentProvider` imported from `@medusajs/utils`. It can then be used in a payment plugin or exported in a provider module.
<Note title="Tip">
Refer to [this guide](/references/payment/provider) on how to create a payment provider for the Payment Module.
</Note>
---
## Configure Payment Providers
The Payment Module accepts a `providers` option that allows you to register providers in your application.
Learn more about this option in [this documentation](../module-options/page.mdx#providers).
---
## PaymentProvider Data Model
When the Medusa application starts and registers the payment providers, it also creates a record of the `PaymentProvider` data model if none exists. This data model is used to reference a payment provider and determine whether its installed in the application.