Mar 27, 2025

Disclaimer: This content generated by AI & may have errors or hallucinations. Edit before use. Read our Terms of use Smartly Disclaimer: This content generated by AI & may have errors or hallucinations. Edit before use. Read our Terms of use According to reports , Paytm subsidiary Paytm Payments Services Limited (PPSL) has terminated its integration with third-party platforms like Juspay and will directly process transactions via its own payment gateway. The development was first reported by Moneycontrol, which viewed Paytm’s notification to merchants advising them to transfer their businesses to PPSL before April 1, 2025, to avoid service disruptions. Why this matters? Paytm became the fourth fintech entity to cut ties with Juspay, following PhonePe , Razorpay, and Cashfree. In a previously emailed confirmation to MediaNama, Razorpay stated, “We believe that only through direct integrations, we can ensure our latest innovations reach our customers swiftly and enhance their operations and experiences seamlessly”. A Cashfree Payments spokesperson responded in a similar vein, claiming to accelerate the delivery of features and offering superior support and merchant experience through direct integration. These exits follow Juspay receiving a finalised payment aggregator license from the Reserve Bank of India (RBI) in February 2024. For context , payment aggregators (PAs) are third-party providers consolidating multiple payment methods into a single setup, streamlining payment acceptance for merchants. Conversely, payment gateways (PGs) are technological solutions serving as intermediaries between customers and merchant banks, securely transmitting encrypted payment data. As MediaNama explained previously, PGs merely provide technical solutions and do not collect payment by themselves; therefore, while PAs can function as PGs, the opposite cannot be done. However, with the new license in hand, Juspay launched HyperPG , its own PA service, stepping into direct competition with the likes of PhonePe and other mentioned PAs. What’s the way forward for Juspay? MediaNama contacted Juspay to get some insights into their perspectives on severances. Question: With the termination of these partnerships, what specific strategies is Juspay implementing to mitigate potential impacts on its transaction volumes and revenue streams? Responding to this, a Juspay spokesperson stressed that it doesn’t have any partnerships with PAs and functions solely as a technology service provider (TSP) for merchants. “When merchants partner with us, our technology seamlessly integrates into their tech stack, and our team functions as an extension of theirs. The business relationship is between the merchant and PAs for payments processing/settlement and separately between the merchant and Juspay for payments orchestration and other value adds we offer them” they added. The spokesperson also denied any business impact, emphasising long-standing merchant reliance on Juspay. Question: How does Juspay intend to address concerns from payment aggregators about potential conflicts of interest, especially after securing its own Payment Aggregator license from the Reserve Bank of India? In response to this query, Juspay emphasized that there exists no conflict of interest. The spokesperson explained that merchants make all transaction routing decisions independently, based on specific business requirements. These include cost optimisation, volume commitments with different payment aggregators, and specific feature needs, among others. “Juspay holds no role in influencing the merchant’s choice of PAs- as we are simply a TSP for the merchant”, they concluded. Advertisements Question: What measures is Juspay taking to maintain its relevance and value proposition to merchants and other stakeholders? Juspay began by stating that it champions diversity, interoperability and merchants’ freedom of choice. The spokesperson claimed that the open-sourcing of Juspay’s routing engine – a part of the orchestration system that directs the incoming payment transactions to the most viable payment gateway – was a part of the fintech’s plan to open-source more elements of the payments stack and “democratize access to enterprise-grade payments infrastructure for merchants in India and across the world”. For context, Juspay recently open-sourced its payments orchestration as a part of its broader open-source initiative, Hyperswitch . Jumping into the payment orchestration boat To explain , payment orchestration comprises integrating a business’ PGs, processors, and other financial service providers into a unified platform to manage all payment operations. Having moved away from Juspay, fintechs like Razorpay with ‘ Optimizer ‘ and Cashfree with ‘ FlowWise ‘ have launched their own payment orchestration services. Also Read: