An Overview of UPI TPAP License Are you an ambitious newcomer eager to launch your third-party application within the UPI ecosystem? Seek expert assistance for the issuance of the UPI TPAP license as prescribed under the guidelines regulating the licensing and participation of TPAPs in the UPI ecosystem. TPAP license is a vital authorization for the effective working of third-party companies within the UPI (Unified Payment Interface) ecosystem. The TPAP license issued by the National Payments Corporation of India (i.e., NPCI) facilitates integrating third party entities with UPI platforms for fund transfer, bill payment, and processing necessary financial transactions. Worried about the complex process of obtaining a UPI TPAP license? Talk to our experts, ensure seamless integration with the NPCI registration process, and say goodbye to stress in India's digital payments ecosystem. Who are TPAPs? TPAPs, which stands for Third Party Application Providers, are third-party developers/ entities that provide a platform that enables initiating/ receiving UPI payments. The TPAPs act as an intermediary which connects various stakeholders involved in the UPI transaction. Service providers are required to obtain a TPAP license from NPCI to operate as payment aggregators and actively participate in the UPI ecosystem. The TPPA license was initially issued to platforms like BharatPe and Google Pay, which revolutionized payment processing to control their UPI experience better. The TPAPs facilitate millions of transactions of customers and merchants initiating and receiving UPI payments. Moreover, it opens up opportunities for entities to thrive in the ever-evolving payment landscape. Is UPI TPAP License Mandatory? The grant of the UPI TPAP license is highly recommended for businesses operating in the UPI ecosystem. The licensing of TPPA enables the third-party application providers to access UPI platforms and earn credibility among the users, banks, and merchants. Moreover, the payment aggregators enabling digital payment are strongly advised to tap into the UPI ecosystem and offer a smooth UPI-based payment solution to their customers. Roles & Responsibilities of TPAP in UPI Ecosystem The role of TPAP in UPI ecosystem is increasingly becoming significant as the UPI ecosystem continues to expand. Some of the curial roles and responsibilities of TPAP are as explained below: Service Provider TPAPs like Google Pay, PhonePe, Amazon Pay, etc., act as a service provider to the Payment Service Provider (PSP) and participants through the PSP. Compliance with NPCI and PSP Requirements TPAP ensures compliance with all the requirements prescribed by the PSP and NPCI in relation to TPAP’s participation in UPI. Function on UPI Platform The TPAPs are responsible for adequately securing the system to function on the UPI platform. Compliance with Laws TPAP ensures compliance with all the applicable laws, rules, regulations, guidelines, etc., as prescribed by any statutory/ regulatory authority in relation to UPI and TPAP’s participation on the UPI platform. Stores Payment Related Data TPAP ensures storing all payment data including UPI transaction data, as and when collected by the TPAP while facilitating UPI transactions (only in India). Access to Data of Agencies TPAP facilitates RBI, NPCI and other nominated agencies to access the data, information, and systems and carry audits of TPAP as and when required by the RBI and NPCI. Customer Grievance Redressal TPAP facilitates the user with an option to raise grievances through TPAP’s UPI-compliant application, e-mail, messaging platform, IVR, etc, for the thorough redressal of customer grievances. Benefits of Securing TPAP License Online The grant of a TPAP license signifies compliance with NPCI rules and regulations, ensuring the security and integrity of the UPI platform. Some of the benefits of obtaining an TPAP license online for UPI transactions are as discussed below: Legitimacy and Trust The grant of a UPI TPAP license enhances the credibility and trustworthiness of the service providers. Moreover, it assures compliance of users, banks, and merchants with UPI regulations, forecasting trust and legitimacy in their services. Access to UPI Platforms Obtaining a TPAP license online secures access to a wide range of services available through the UPI platforms. Moreover, it enables the end-users to enhance their overall payment experience through UPI platforms. Seamless Integration/ Bridges Gap Obtaining a TPAP license online guarantees bridges the gap between partner banks and other UPI participants. Moreover, the seamless integration of sponsor banks and other UPI participants facilitates secure and efficient UPI transactions. Dispute Resolution TPAP license registration allows businesses to leverage NPCI’s robust dispute management framework. It ensures the timely resolution of conflicts or issues arising that may arise during the UPI transactions. Regulatory Compliance Obtaining a TPAP license online enables the third party application providers to comply with applicable laws, regulations, and guidelines. Moreover, it ensures their commitment to regulatory compliance to secure efficient operation within the UPI ecosystem. Business Growth Securing a TPAP license future-proofs your business for sustained growth and innovation within the dynamic UPI landscape. Moreover, it enables businesses to adapt to updates and new opportunities in the digital payment ecosystem. Enhance Transaction Experience The grant of a TPAP license enhances the transaction experience within the UPI ecosystem. It enables the service providers to offer value-added services like bill payments, mobile recharge, and other convenient services enhancing the customer experience. Offers User-Friendly Interface TPAP service providers offer user-friendly interfaces for making seamless UPI transactions and possess features like transaction history, contact management, and seamless UPI transactions. Eligibility Criteria for UPI TPAP License Online The UPI TPAP license online is granted to the entities that meet specific eligibility criteria as specified by the NPCI. Some of the applicable entities eligible to apply for UPI TPAP license online are listed below: Third-party application developers like PhonePe, Google Pay, Amazon Pay, etc. All non-banking financial companies (NBFC) using NPCI UPI technology Registered private limited companies Entities operating as payment aggregators Registered e-commerce companies indulged in B2C transactions A sponsor/ partner bank underlying operational and financial liability Documents Required for UPI TPAP License The applicant companies or third-party application developers must comply with the up-to-date documents required to obtain a UPI TPAP license from NPCI. The following list entails the list of documents required for obtaining a UPI TPAP license in India: Company’s certificate of incorporation Incorporation documents of the company Company’s financial statement KYC documents of directors and shareholders Detailed business plan Comprehensive security and privacy policies Business model Additional documents (if required by NPCI) Bank proposal, bank shares UAT details Connect with us on WhatsApp to obtain a UPI TPAP license from NPCI seamlessly. How to Apply for TPAP License Online in India? The registration process for obtaining a TPAP license online in India ensures smooth compliance and integration, which simplifies the process for entities seeking to operate within the UPI ecosystem. Below is the process required for obtaining a TPAP license registration with NPCI: Eligibility Check The applicant companies or third-party service providers seeking TPAP license registration must comply with the eligibility criteria and gather all necessary information as specified by the NPCI. Filing of Online Application The service providers seeking TPAP license registration must visit and file the online application form available at the official website of the NPCI. Submission of Necessary Documents After signing an agreement and payment of integration fees, the banks must make submission of necessary documents like proposal/ idea, UAT (User Acceptance Testing) details, etc., to the NPCI. Application Review The NPCI is authorized to confirm the eligibility criteria and review the completeness of the documents duly submitted to avoid further delays during the application processing. Verification and Assessment The NPCI is further authorized to conduct thorough verification and assessment of the background, financial stability, and regulatory compliance required for the grant of UPI TPAP license registration. Issuance of TPAP License Upon the approval of the application submitted, the NPCI is authorized for the issuance of TPAP license to the third- party service providers participating in the UPI ecosystem. Book an appointment to simplify the entire process of obtaining TPAP license registration. Compliance Requirements for TPAP License Registration Upon receiving the license, the TPAP must ensure compliance with the NPCI regulations, which are critically required for maintaining the integrity of the UPI transactions. Some of the key compliances & regulatory requirements for TPAP License registration are discussed below: Agreement with Bank The TPAPs, including the application developer, must connect & sign a sponsor agreement with banks, fintech companies, and regulators to team up with the NPCI settlement ecosystem (through API). Moreover, the TPAPs are required to pay an additional fee for the integration with the sponsor bank. Periodic Reporting The licensed TPAPs must ensure the submission of periodic reports comprising transaction details, fraud incidents, etc., to the NPCI. Security Measures The licensed TPAPs must ensure the maintenance of stringent security measures like encryption guidelines, multi-factor authentication, etc., for the protection of user data. Customer Data Protection The licensed TPAPs must ensure the protection of the privacy and critical data of the customers, in consonance with data protection laws like the IT Act and the General Data Protection Regulation. Internal Audits The licensed TPAPs ensure conducting regular internal audit to identify and rectify any operational deficiencies, as prescribed under the NPCI guidelines. NPCI Market Share Cap for TPAP According to the Standard Operating Procedure (SOP), the NPCI set a market share cap for third party application providers (TPAP). Payment service providers (PSPs) and each TPAP must ensure that the total transactions initiated do not exceed 30% of the overall volume of transactions processed in UPI. The volume cap imposed by NPCI enumerates the volume quota system, deciding the volume of UPI transactions done by each TPAP. Moreover, the NPCI sets provisions for timely monitoring and communication upon reaching the threshold value of the market share cap for the respective TPAP. What are the Top TPAPs in the Market? The top TPAPs existing in the competitive landscape of India stand out for their diverse UPI services and seamless, user-friendly interfaces, as enlisted below: BharatPe, live on August 2024 CRED, live on April, 2019 PhonePe, live on August 2016 Paytm, live on March 2024 Google Pay, live on June 2017 Amazon Pay, live on January 2019 MobiKwik, live on May 2018 WhatsApp Pay, live on November 2020 Samsung Pay, live on February 2018 TataPay, live on April 2022 Timepay, live on August 2021 Slice, live on August 2022 Make My Trip, live on December 2018 Groww, live on March 2023 Future of TPAPs in India The future of TPAP in India is driven by the rapid growth of the digital payment ecosystem and regulatory support. Some of the key trends shaping the future of TPAPs in India are as discussed below: Increased awareness through active promotion of TPAP Incentivized by companies for promoting subscriptions Ensure customer stickiness to digital payments Growth of e-commerce drives demand for TPAP Continued support of the government in promoting digital payments Adoption of blockchain technology Leverage AI and machine learning to enhance transaction security Timeline to Obtain UPI TPAP License The timeline required to obtain a UPI TPAP license varies depending upon the capability of the teams associated with the sponsor banks and technology development. Generally, it takes around 3 to 6 months for the issuance of a UPI TPAP license, determined based on factors like the signing of a bank agreement and engaging full-time engineer consultants. Why Choose Enterslice for TPAP License Registration? We at Enterslice ensure compliance with the NPCI-prescribed rules and guidelines, which regulate the licensing and participation of TPAPs in the UPI ecosystem. Contact us today, to simplify and enjoy the seamless process for obtaining a TPAP license registration in India. Guarantees Hassle-free Documentation in Getting a TPAP License Better Understanding of UPI TPAP License Regulations Extending Licensing Support Across 10,000+ Pin Codes Ensure Compliance with Ongoing Regulations Offers Reliable Cloud-based Architecture Effortless Customer Acquisition Rate Access to Diversified Banking Options End-to-end Assistance in TPAP License Registration Seamless NPCI Certification Expert Guidance and Support in TPAP Licensing.
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