A third-party service refers to a company or organization that provides services to another business or individual, but is not directly involved in the primary transaction. For example, when an online store uses a payment processor like PayPal to handle customer payments, PayPal acts as a third-party service. This allows the store to focus on selling products while relying on PayPal for secure payment processing. These services can enhance efficiency and expertise in various areas, such as customer support, logistics, or data storage. By outsourcing certain functions to third-party providers, businesses can save time and resources, allowing them to concentrate on their core operations and improve overall performance.