Modulo my comment above, this is indeed a rephrasing of replacement. Informally (formalizing everything here is a good exercise), fix $\psi$ and $A$ as above. For each $n\in\omega$ and $a\in A$ there is a unique $b$ such that there is a length-$(n+1)$ sequence whose first term is $a$, whose last term is $b$, and whose $(i+1)$th term is $\psi$ applied to its $i$th term. Intuitively this $b$ is just $\psi^n(a)$; note that $\psi^0(a)=a$ by this definition.
We can now treat this as an instance of replacement starting on $\omega\times A$; the resulting set $B$ is intuitively the set of all things that can be gotten from elements of $A$ by repeatedly applying $\psi$. This $B$ has the desired properties.
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As to formalism, the principle in the OP should (like the separation and replacement axioms) be formulated as a _scheme_ , consisting of a separate instance for each formula $\psi$ (and a bit of care taken to allow parameters).