Understanding ASPSPs and TPPs in the UK and Europe: The Two Sides of Open Banking

Acronyms in the open banking space can feel overwhelming. ASPSPs, TPPs, AISPs, PISPs, it’s a lot, and why we created our glossary. Understanding these roles is essential to grasping how the open banking ecosystem in the UK and Europe works and where you fit in.

Whether you’re a bank deciding how to expose your data securely, or a fintech building services on top of that data, knowing the difference between ASPSPs and TPPs will help you identify the right solutions and partners for your needs.

If you’re interested in demystifying participants and roles across global markets, we’ve created a visual guide that explains open finance ecosystem roles worldwide. You can explore the guide on our Open Banking Intelligence Hub.

Now let’s jump in and break down the terms for ASPSP’s and TTPs in the UK and Europe:

The Two Sides of Open Banking

There are two sides to the open banking ecosystem: ASPSPs (Account Servicing Payment Service Providers) are the data providers, and TPPs (Third-Party Providers) are the data consumers.

What Are ASPSPs?

ASPSPs are typically banks that hold customers’ accounts and manage their financial data. Their main role in open banking is to expose account and payment data securely through standardized APIs.

Specifically, ASPSPs:

• Provide access to account information (balances, transactions, account details) when a customer consents.
• Allow payment initiation directly from the customer’s bank account through APIs.
• Ensure security, authentication, and customer control — they never share data without explicit consent.

For example: An ASPSP exposes APIs that let authorized TPPs retrieve a user’s transaction history or initiate a payment, but only after the user confirms permission.

What Are TPPs?

TPPs are regulated fintechs, apps, or service providers that use the data and payment access provided by ASPSPs to create new services for customers.

There are two types of TPPs:

1. AISP (Account Information Service Providers): Access and consolidate data from multiple banks to provide insights, dashboards, or financial tools.

• Example: A small business uses an accounting platform (TPP) that connects to their various bank accounts (ASPSPs). With consent, the platform retrieves all transactions automatically for bookkeeping and cash flow analysis.

2. PISP (Payment Initiation Service Providers): Initiate payments directly from the user’s bank account.

• Example: A small business uses an invoicing platform (TPP) that enables clients to pay invoices directly from their bank accounts via open banking. When a client selects “Pay by Bank,” the platform securely initiates a payment request to the client’s bank (ASPSP). Once the client authenticates and approves the transaction, the payment is made directly to the business’s account and automatically reconciled in the system.

How ASPSPs and TPPs Work Together

The interaction between ASPSPs and TPPs follows a secure, consent-driven process:

1. Customer gives consent via a secure authentication process.
2. TPP calls the ASPSP’s API to request account data or initiate a payment.
3. ASPSP validates the consent and responds with the requested data or executes the payment.
4. TPP uses that information to deliver value-added services (e.g., analytics, automation, lending decisions).

Which Side Are You On?

If you’re evaluating open banking solutions, the first question to ask yourself is: Are you looking for a solution on the data provider or the data consumer side of the ecosystem?

On the data provider side, you would be acting as an ASPSP to allow payment initiation directly from your customer’s bank account through APIs. This is typically the role of banks and financial institutions that need to expose their account and payment data securely.

On the data consumer side, you would be acting as a TPP to initiate payments or access account information through APIs directly from a user’s bank account held by the ASPSP. This is the role of fintechs, apps, and service providers building services on top of open banking.

Whether you’re an ASPSP needing to expose secure APIs that meet regulatory standards, or a partner helping banks achieve compliance, Ozone API provides the technology and expertise to get you there, quickly and securely.

Our platform supports all major global open banking standards, offers rapid deployment, and goes beyond compliance to help you unlock commercial opportunities through premium APIs and embedded finance.

Ready to get started? Contact us to learn how Ozone API can support your open banking journey.