What is PSP in a UPI app?

A Payment Service Provider (PSP) in a UPI app is an entity, usually a bank, that acts as an intermediary between the user and the UPI infrastructure managed by the NPCI. PSPs are essential for:

• Registering users and linking their mobile numbers to bank accounts.
• Managing Virtual Payment Addresses (VPAs) and UPI PIN setups.
• Authenticating and routing transaction requests securely through the UPI network.
• Providing the technical interface or application for initiating payments.

They ensure that digital transactions are processed safely, quickly, and efficiently.