TPP
Open Banking #
A Third Party Provider (TPP) can be an Account Information Service Provider (AISP) or a Payment Initiation Service Provider (PISP) or both alrajhi bank ref
Open banking third party providers facilitate interaction between bank and customer.
While typically consumers communicate directly with the bank, with a TPP, consumers communicate with their TPP who then interacts with the bank.
It therefore functions as a kind of liaison.
are organizations or natural persons that
use APIs developed to Standards to access customer’s accounts, in order to provide account information services and/or to initiate payments. Third Party Providers are either/both Payment Initiation Service Providers (PISP) and/or Account Information Service Providers (AISP).
Example #
AzmX can be TPP because.
TPP vs TSP #
AzmX can be TSP because it is planning to build products and services using Open Banking
| Attribute | TPP (Third-Party Provider) | TSP (Technical Service Provider) |
|---|---|---|
| Role | Provides services like account aggregation, payment initiation, etc., by accessing bank APIs. | Provides the technical infrastructure to facilitate API access between TPPs and Banks. |
| Regulation | Regulated by financial authorities, must adhere to open banking standards like PSD2 in the EU. | May or may not be regulated, depending on the jurisdiction and the services offered. |
| Interaction with End-User | Direct interaction with end-users to provide various financial services. | Typically does not interact with end-users; offers B2B services. |
| API Access | Uses APIs to access financial information or initiate payments, with user consent. | Provides or manages APIs for TPPs, may also handle API security, monitoring, and analytics. |
| Business Model | B2C or B2B2C, earns by providing value-added services to end-users or businesses. | Typically B2B, earns by offering technical services to banks or TPPs. |
| Example Services | Account Information Service Providers (AISP), Payment Initiation Service Providers (PISP), etc. | API gateways, identity verification services, API monitoring, etc. |