In this paper, introducing the special issue on “Payments for Ecosystem Services and Their Institutional Dimensions: Analyzing the Diversity of Existing PES Approaches in Developing and Industrialized Countries”, we highlight the following PES aspects. First we set out with a discussion on different definitions of PES, both in a narrow and a wider sense. We continue with a short historical outline on how the PES approach evolved in developing and industrialized countries against the backdrop of Ecological Economics theory and the Ecosystem Service concept. Then we discuss how broad the spectrum of existing PES in reality is and what kind of classification approaches are presented in the literature. We then move on to actual PES development and discuss what the different phases in PES design are and what kind of activities take place in each phase. This is followed by a discussion in how far PES can be seen as innovations in the toolbox of conservation approaches. In the last part, we conclude with a short outlook on the different individual papers in the special issue. •Paper introduces SI on “Payments for Ecosystem Services and Their Institutional Dimensions”.•We focus on the following aspects of PES:•PES definitions according to Coase vs. Pigou.•Short historical outline on how the PES approach evolved over time.•Broad spectrum of existing PES and approaches for their classification.•Different phases in PES design from initiation to program operation.•Innovative aspects of PES.•We conclude with a short outlook on the different individual papers in the SI.