What is a TPAP in UPI?
A TPAP (Third-Party Application Provider) is a non-bank company that runs a UPI app, such as Google Pay or PhonePe. It cannot connect to UPI on its own. It works through one or more sponsor PSP banks, which hold the NPCI connection and the regulatory responsibility.
TPAP matlab woh company jo UPI app chalati hai lekin khud bank nahi hai, jaise Google Pay ya PhonePe. TPAP seedha NPCI se nahi judta. Woh ek ya zyada PSP banks ke through UPI par chalta hai.
TPAP vs PSP bank
The PSP bank is the regulated member of UPI: it connects to NPCI's switch, issues UPI handles (the part after @) and answers for compliance. The TPAP builds the customer app and experience on top. A user's money never sits with the TPAP. The debit and credit happen in the linked bank accounts.
TPAP licence in India: what approval you actually need
People often search for a "TPAP licence", but there is no separate RBI licence called a TPAP licence. To run a UPI app as a TPAP, a company needs approval from NPCI and a tie-up with at least one sponsor PSP bank that connects it to UPI. NPCI reviews the company, its app and its security and compliance controls, and the app goes live only after testing and certification through the sponsor bank. NPCI publishes the current list of approved TPAPs on its website.
If the plan is to also hold customer money, issue wallets or act as a payment aggregator, those activities need their own RBI authorisation, separate from being a TPAP.
How a TPAP goes live
A TPAP needs NPCI approval and at least one sponsor PSP bank. NPCI's multi-bank model lets large TPAPs work with several PSP banks and spread handles across them, which improves resilience. TPAPs must follow NPCI's operating guidelines, including limits on market share, data storage in India, and grievance redressal.
What a TPAP needs technically
A TPAP needs a UPI SDK or switch integration through its sponsor bank. It also needs device binding and SIM verification, VPA management, handling of NPCI response codes, dispute and complaint flows, and fraud checks. Infrastructure providers offer this as a TPAP-ready UPI stack so an app does not have to build a switch.
Common questions
How to get a TPAP licence in India?
There is no separate TPAP licence. A company needs NPCI approval as a Third-Party Application Provider and a sponsor PSP bank to connect it to UPI, followed by testing and certification before launch.
Who approves a TPAP in UPI?
NPCI approves TPAPs, and each TPAP works through one or more sponsor PSP banks that are members of UPI.
What is TPAP in UPI?
A Third-Party Application Provider: a non-bank app (like Google Pay or PhonePe) that offers UPI payments through a sponsor PSP bank.
What is the difference between TPAP and PSP?
The PSP bank is the regulated UPI member that connects to NPCI and issues handles. The TPAP is the app company that builds the user experience on top of one or more PSP banks.
Is Google Pay a TPAP?
Yes. Google Pay, PhonePe and similar non-bank UPI apps are TPAPs that work through sponsor PSP banks.
TPAP kya hai?
TPAP woh non-bank company hai jo UPI app banati hai. Woh PSP bank ke through NPCI se judti hai.
Related
ZyroAI products for this: UPI Stack.
Written by the ZyroAI team for people building in Indian BFSI. Regulatory rules change, so for binding requirements check the current RBI, NPCI, UIDAI or relevant regulator circular. Last updated 2026-10-06.