What is TPAP?
TPAP stands for Third Party Application Provider.
It refers to any company or application that:
- Offers UPI-based payment services to customers,
- But does not directly hold a UPI license (they rely on banks for that),
- And integrates with one or more banks (called PSP Banks) to provide UPI features.
Who Grants TPAP Authorization?
The NPCI (National Payments Corporation of India) is the regulatory body that:
- Manages the UPI platform,
- Authorizes TPAPs,
- And ensures that they meet strict technical, security, and compliance norms.
TPAP vs PSP: What’s the Difference?
TPAP (Third Party Application Provider): Front-end UPI app for end-users (e.g., PhonePe, Amazon Pay, Cred)
PSP (Payment Service Provider Bank): Bank partner who connects the app to UPI infrastructure (e.g., Axis Bank, ICICI Bank, Yes Bank)
A TPAP must tie up with a PSP Bank to operate in the UPI ecosystem.
Responsibilities of a TPAP
- Build and maintain a secure UPI app or payment gateway
- Ensure compliance with NPCI’s UPI guidelines
- Handle customer onboarding and KYC
- Manage user disputes and transaction errors
- Securely store sensitive data (following RBI & NPCI norms)
- Work with the PSP Bank to process UPI transactions
TPAP Licensing Requirements
To become an authorized TPAP, an entity must:
1. Sign a tripartite agreement with:
- NPCI (for UPI access),
- At least one PSP Bank (for backend processing),
- Itself (as TPAP).
2. Fulfill technical guidelines (data security, uptime, failover systems, etc.)
3. Undergo audits and sandbox testing.
4. Have:
- An Indian entity (Private Ltd / LLP / Public Co.)
- Sufficient funding and capital to operate reliably
- A strong KYC & data security infrastructure
Popular Examples of TPAPs
- Google Pay – TPAP, partnered with Axis Bank & SBI as PSPs
- PhonePe – TPAP, PSP is Yes Bank
- Amazon Pay – TPAP, PSP is Axis Bank
- CRED – TPAP, PSP is IDFC First Bank
- Paytm – TPAP and PSP (through Paytm Payments Bank)
Why Fintechs Should Care
If you're building a UPI-based app, payment solution, or neo-banking product:
- Getting TPAP status opens the gateway to India’s digital payment system.
- It allows you to launch UPI QR codes, collect & initiate UPI payments, and build financial services on top of UPI.
- You’ll be listed on the NPCI UPI ecosystem as an authorized provider.
Conclusion
A TPAP license from NPCI is a powerful gateway into India’s booming digital payment ecosystem. It allows third-party apps to offer seamless UPI services while partnering with PSP banks for backend support.
As the UPI ecosystem continues to expand into newer areas like UPI Lite, UPI Credit, and international UPI, becoming a TPAP is a golden opportunity for fintech players to shape the future of payments in India.
Want to Become a TPAP?
If you're a fintech looking to become a TPAP or need help building your UPI-enabled app, reach out to us at:
📧 info@pay2all.in
📱 +91 8448449290
We help businesses launch UPI & AEPS-powered fintech solutions from scratch.