Razorpay and Cashfree Payments, two prominent payment aggregators, have announced plans to end partnerships with third-party payment orchestration platforms, including Juspay.
The development comes nearly a year after the Reserve Bank of India (RBI) approved Juspay as an online payment aggregator platform.
However, digital payments solutions company Pine Labs appears to have supported Juspay and will continue to work with alternative orchestration systems.
“In the world of technology, open architecture and collaboration are critical,” Pine Labs founder and CEO Amrish Rau told the Economic Times. He further said that they will continue to foster the collaboration and their online platform will continue to partner with other orchestration platforms to provide the best experience for merchants and consumers.
The Reason
Companies like PhonePe, Cashfree and Razorpay are moving away from third-party connections to establish direct integrations of their platform with merchants. A full connection with a merchant would allow businesses to gain control of their client base, including data and compliance, and expand payment solutions. This move comes as companies have increased their investment in payment processing to guarantee that merchants experience as little downtime as possible.
This shift is also due to Juspay receiving the final license from the banking authority, which allows it to compete directly as a payment aggregator with these platforms.
Sheetal Lalwani and Vimal Kumar, co-founders of Juspay, responded to this development in a blog post, writing, "Merchants pay us for our software because it delivers value to them. We do not rely on PGs for this money...For the past 12 years, we've formed deep connections with prominent merchants, serving as their extended payments teams, delivering technology to ease payments operations, extensive payment domain expertise, and partnering on long-term ecosystem efforts."
PhonePe Quit Juspay
PhonePe, a prominent fintech company, ended its partnership with SoftBank-backed payments platform Juspay in December 2024 and will no longer work with any third-party routing platforms, instead providing direct integration to its consumers.
"As a payment aggregator, one of our primary responsibilities is to provide our merchants with the best in class success rates via our solutions. We can do it consistently for merchants that are directly integrated with us, hence we've opted not to sell our solutions through any payment orchestration platform," PhonePe said in a statement.
