Difference Between Upstream Providers and Merchants
This document explains the differences between Upstream Providers and Merchants in our wallet system.
What is an Upstream Provider?
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Definition:
Upstream providers are third-party partners who help our wallet users complete transactions. They act as a bridge between our wallet system and external banking or payment networks. -
Examples:
Currently, our upstream providers include:- MCG
- OX
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Role in Transactions:
- Process payments on behalf of wallet users.
- Handle incoming and outgoing funds for transactions.
- Provide services like payment routing, settlement, and transaction verification.
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Typical Scenarios:
- When a user sells money through the wallet, the upstream provider buys the funds and completes the payment to the user’s UPI account.
- When a user wants to purchase wallet balance, the upstream provider sells their wallet balance to the user.
What is a Merchant?
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Definition:
Merchants are gaming platforms that work with the wallet system to enable transactions for users. -
Examples:
- Online gaming platforms
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Role in Transactions:
- Help wallet users quickly deposit funds into gaming platforms.
- Assist users with withdrawing funds from gaming platforms through the wallet system.
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Typical Scenarios:
- A player deposits money from the wallet into their gaming account on a platform (the merchant).
- When the player wants to withdraw, the merchant requests a payout through our wallet system.
Key Differences
| Aspect | Upstream Providers | Merchants |
|---|---|---|
| Main Role | Help process payments and settlements for wallet transactions. | Facilitate deposits and withdrawals for gaming platforms. |
| Who they serve | The wallet system and its users. | The end users (players) directly. |
| Examples | MCG, OX | Gaming platforms |
| Funds Direction | Send money to users or receive funds from users via the wallet. | Mostly receive money from users or request withdrawals for users. |
| Relationship | Partner with the wallet as financial service providers. | Partner with the wallet to provide gaming or digital services. |
Why the Difference Matters
Understanding the difference between upstream providers and merchants is important for:
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Transaction Troubleshooting:
Knowing whether an issue relates to the upstream provider or the merchant helps resolve problems more quickly. -
Order Tracking:
Order numbers may come from either upstream systems or merchant systems, and they are different. -
Communication:
When working with customers or partners, using the correct terms avoids misunderstandings.
Although both upstream providers and merchants work with the wallet system, their roles and responsibilities are very different. Upstream providers handle payment processing and settlements, while merchants focus on services like gaming platforms.