Context:
Hyderabad-based Viyona Fintech, a digital payments platform, has been granted approval by the National Payments Corporation of India (NPCI) to operate as a Third-Party Application Provider (TPAP), enabling support for UPI-based transactions.
Key Details:
- Approved Applications:
- GraamPay – flagship platform targeting rural India.
- Viyona Pay – supports UPI-based collections and payments.
- Objective: Expand digital payment access in Tier II, Tier III cities and rural areas.
- Target Users: Farmers, shopkeepers, and households.
- Services Offered:
- UPI transactions
- Digital collections
- Payouts and financial transfers
Third-Party Application Provider (TPAP)
A Third-Party Application Provider (TPAP) is a regulated intermediary that facilitates digital payments (like UPI) between customers and banks through mobile apps or web platforms, without holding the customers’ funds.
Key Features:
- Intermediary Role:
- Acts as a bridge between banks and end-users for payment initiation.
- Enables customers to make UPI-based transactions via third-party apps.
- Regulation:
- Authorized by the National Payments Corporation of India (NPCI).
- Must comply with security, data privacy, and operational standards prescribed by NPCI.
- No Fund Handling:
- Unlike Payment Aggregators, TPAPs cannot hold or settle customer funds; the transaction settlement happens directly between the bank accounts of payer and payee.
- Customer Experience:
- Provides user-friendly interfaces, such as mobile apps, for easy UPI payments, bill payments, and collections.
- Supports multi-bank interoperability, eliminating the need for users to install multiple bank apps.
