B2B Fintechs Enter Retail Payments via UPI TPAPs
Why in the news
Fintechs that serve businesses are eyeing retail users, using TPAPs as the doorway.
| Term | Meaning |
|---|---|
| B2B fintech | Serves MSMEs, corporates, startups, banks and NBFCs, not individuals |
| TPAP | UPI app provider that is not a bank |
| PSP bank | Sponsor bank that processes payments |
Key facts
- B2B fintechs help with payments, credit, compliance, accounting and lending, working behind the scenes unlike PhonePe or Paytm.
- TPAP examples: Google Pay, PhonePe, Paytm, Amazon Pay, BharatPe.
Exam angle
- TPAP = Third-Party UPI Application Provider.