Fintechs Switch To Direct Merchant Integration, Discontinue With Juspay

Fintech companies are switching from third-party routers and payment orchestration platforms and choosing to focus on direct integration with their merchant base. 

In the recent past, PhonePe discounted its partnership with payment orchestration platform Juspay as it decided to directly integrate its payment solutions. Juspay holds a majority market share in the payment orchestration platforms space and has been a service provider to multiple fintechs. 

Following this, fintechs Razorpay and Cashfree Payments are also making a similar move. Cashfree Payments spokesperson said, “We plan to transition away from integrations via third-party routers and orchestrators. By offering direct integration, we can accelerate the delivery of features and offer superior support and merchant experience.” 

Razorpay too said that going forward it has decided to pause integrations through all third-party payment orchestration platforms.

“Going forward, we will be pausing all integrations through third-party routing platforms. We will offer payment gateway services through our own direct integrations to our customers. Razorpay has consistently been at the forefront of innovation, delivering cutting-edge solutions to our customers with unmatched speed and efficiency. We believe only through direct integrations can we ensure our latest innovations reach our customers swiftly and enhance their operations and experiences seamlessly,” a Razorpay spokesperson said. 

Juspay Technologies was given permission by the Reserve Bank of India (RBI) to function as an online payment aggregation platform over a year prior to this.

Amidst the development, Juspay, in a blog post, said that Juspay Orchestrator is not a payments intermediary. “We are a TSP (Technology Service Provider) to the merchants, similar to how they use the Cloud and infrastructure SaaS services. It is the merchants who partner with Juspay Orchestrator and PAs separately. Therefore, the media talking about payment gateway partnering or “ending partnership” with Juspay in this context is factually incorrect,” it wrote. 

Merchants' choice to use Juspay Orchestrator or build it in-house is similar to them deciding on technology software/services like C++, Java or AWS/GCP, etc., or whether they can work with technology service partners like Infosys/TCS. “We strongly believe that it is the independence of the merchants to use any technology and services of their choice and we are committed to continue delivering value through Juspay Orchestrator to meet and exceed their expectations,” it added. 

The company further noted that payment aggregators are also building their own third-party routers—Razorpay (Optimizer) and Cashfree (FloWise)—and the company welcomes the move.