A Third Party Application Provider (TPAP) offers UPI payments through its app in partnership with one or more sponsor banks acting as Payment Service Providers. TPAPs need approval from the National Payments Corporation of India (NPCI), must meet technical, security and data localisation requirements, and follow NPCI rules including market share guidelines.
Structure
The TPAP provides the app; sponsor banks provide UPI connectivity and handle funds.
Requirements
- Indian entity
- Security and audit compliance
- Customer grievance systems
- Data stored in India
Process
- Partner with PSP banks.
- Apply to NPCI.
- Certification and audits.
- Go-live approval.
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Get expert help →Market share rules
NPCI has market share caps for TPAPs with compliance timelines; check the current deadline.
Frequently asked questions
Does a TPAP need an RBI licence?
Not for UPI app services alone; wallets or lending need separate RBI licences.
Can a TPAP hold customer money?
No, funds move between bank accounts.
How many PSP banks are needed?
Large TPAPs are encouraged to use multiple PSP banks.
How long does approval take?
Several months including audits.
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