NPST – Technology Provider for UPI Tech

I work with a fintech so have a decent knowledge of UPI Infra.

NPST has multiple products but is mainly divided into two customer segments.

• For Banks/fintech: Think of it this way if I want to integrate UPI into my app I can either build the whole solution in-house or buy it off the shelf from companies like NPST. Now every company can not build an in-house UPI solution and hence the best way for them is to buy solutions from companies like NPST. Banks and Fintechs are mostly customers in this section. Also, there are a ton of smaller pieces in while UPI payments rail like UPI switch, Fraud detection etc, If a bank/fintech wants they can buy individual solutions as well.

• For Merchants: These products are for merchants to receive the payments, manage the ledger, control fraud etc. They can be either through a soundbox that you typically see at a merchant, website, app etc. Here merchants are their customers and they charge merchants either on a monthly fixed rate or based on the no of transactions that NPST is routing through. Retail merchants do pay (I think Paytm charges 90Rs per month for Soundbox) not in the form of MDR but for the services they are getting.

So NPST revenue comes from their banks, fintechs, and merchants, not folks like us who use UPI. basically, they are a B2B company. Based on my understanding from their deck any solution that they provide to banks and fintech counts under TSP and solutions they provide to merchants or Payment aggregators counts under PPaaS. I am not 100% sure how they differentiate between TSP vs TPAP if someone can throw light on that it will be very helpful.