What is a Third-party provider (TPP)?

A TPP or Third-Party Provider is a service provider that has been certified and authorised by a National Competent Authority. In the UK, all third party providers taking part in the open banking ecosystem are authorised and regulated by the FCA. They are positioned outside of the customer-bank relationship but may be involved in the transactions you carry out.

There are three types of TPP:

1. PISP – Payment Initiation Service Provider.
2. AISP – Account Information Service Provider.
3. CBPII - Card-Based Payment Instrument Issuer

These are not exclusive: for example, a financial institution can hold both AISPand PISP licences.