In a significant development, leading payment aggregators Razorpay and Cashfree have announced their decision to discontinue their partnership with payment orchestration platform Juspay. This move signifies a shift towards direct integrations, as both companies aim to streamline their operations and enhance merchant experiences.
A Cashfree spokesperson stated, “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 provide superior support and merchant experience.” Similarly, Razorpay also revealed plans to pause all integrations through third-party routing platforms.
This change was first reported by The Head and Tale, with additional insights provided by the Economic Times. Pine Labs, a prominent player in both offline and online merchant payment services, is expected to continue its collaborations with other orchestration platforms, despite this shift.
Juspay, a technology service provider (TSP) for merchants, clarified its role in the payments ecosystem. “Juspay does not have direct tie-ups with PAs, as we are a Technology Service Provider to merchants, not a payments intermediary,” said a Juspay spokesperson. The spokesperson further added, “We have always been a trusted partner to merchants, enabling them to work with multiple PAs and PGs. Any PA or PG unwilling to work with a merchant will ultimately lose out, affecting not just the merchant but the broader payments ecosystem.”
Juspay, backed by SoftBank, is known for its payment processing technology and flagship products such as Juspay Safe, HyperSDK, Express Checkout, and UPI in a Box. It has played a crucial role in facilitating payment gateways, and processing a significant volume of transactions, including around 15% of PhonePe’s payment gateway volume.
However, the departure of two major aggregators—Razorpay and Cashfree—could potentially disrupt Juspay’s business, affecting its market position. Despite this, Juspay has seen impressive growth in recent years. For the fiscal year ending March 2024, Juspay’s operational revenue surged by 49.6%, reaching Rs 319.32 crore, compared to Rs 213.39 crore in FY23. More than 88% of the company’s revenue now stems from its payment platform integration business. Additionally, Juspay successfully reduced its losses by 7.8%, posting a loss of Rs 97.54 crore for FY24.
The shift by Razorpay and Cashfree marks a pivotal moment in the Indian payment ecosystem, as both companies push for greater control over their integrations and aim to offer more customized solutions for their merchants. Whether this move will lead to long-term advantages or disruptions remains to be seen, but the evolving landscape of payment technology is certainly one to watch.
