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In a strategic move, leading payment aggregators Razorpay and Cashfree have decided to discontinue their partnership with payment orchestration platform Juspay,
This decision follows PhonePe's move to sever ties with Juspay in December 2024, as reported exclusively by Entrackr. Last month, Entrackr’s sources also revealed that several payment gateway companies were considering moving away from the orchestration platform, though Juspay dismissed these reports as speculation.
“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,” said a Cashfree spokesperson. A spokesperson from Razorpay also said that the company would pause all integrations through third-party routing platforms.
The Head and Tale reported the development first. An ET report added that Pine Labs, a provider of both offline and online merchant payment services, will continue to collaborate with other orchestration platforms.
“Juspay does not have direct tie-ups with PAs, as we are a Technology Service Provider (TSP) to merchants, not a payments intermediary,” said a Juspay spokesperson. “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.” the spokesperson added.
SoftBank-backed Juspay offers payment processing technology, supporting offline payments with flagship products such as Juspay Safe, HyperSDK, Express Checkout, and UPI in a Box.
Sources indicate that approximately 15% of PhonePe's payment gateway volume was processed through Juspay. The departure of Razorpay and Cashfree could significantly impact Juspay's business.
For the fiscal year ending in March 2024, Juspay's operational revenue grew by 49.6% to Rs 319.32 crore from Rs 213.39 crore in FY23. By FY24, over 88% of Juspay's total revenue came from its "payment platform integration business." The company also reduced its losses by 7.8% to Rs 97.54 crore for the year.