What is TPP

TPP in finance stands for Third Party Payment. It refers to a payment system where a third party, typically a financial institution or payment service provider, facilitates transactions between a buyer and a seller. TPPs play a crucial role in enabling secure and efficient electronic payments, often by providing a platform or infrastructure that allows for the seamless transfer of funds between parties. This can include services such as online payment gateways, mobile wallets, and peer-to-peer payment apps. TPPs are subject to regulatory oversight and compliance requirements to ensure the safety and security of financial transactions. The rise of TPPs has been driven by advancements in technology and the increasing demand for digital and mobile payment solutions. They have also been a key enabler of the growing trend towards cashless and contactless payments. In recent years, the financial industry has seen a proliferation of TPPs offering a wide range of innovative payment solutions, leading to increased competition and consumer choice in the payments landscape.