• Starting April 1, 2025, Paytm Payments Services Limited (PPSL) will no longer use third-party payment orchestration platforms like Juspay.
  • Juspay recently open-sourced its payment routing engine, Hyperswitch, to address transparency concerns in the industry.

Noida-based fintech giant Paytm has announced a major shift in its payment processing strategy. Starting April 1, 2025, Paytm Payments Services Limited (PPSL) will cease using third-party payment orchestration platforms like Juspay and will instead process transactions directly through its own system.

The company has urged businesses to transition to its in-house payment infrastructure before the deadline to prevent disruptions in their payment services.

With this move, Paytm joins other fintech firms like Razorpay, PhonePe, and Cashfree Payments in an industry-wide trend away from third-party payment orchestration services.

Concerns Over Third-Party Routing Engines

Payment orchestration platforms, such as Juspay, have been widely used by merchants to manage multiple payment gateways, optimizing transaction success rates by selecting the best gateway based on various factors.

However, payment gateway providers have raised concerns about the level of control these platforms have over routing decisions.

Additionally, there are transparency concerns since Juspay, which holds a payment aggregator license, also competes directly with payment gateway providers by offering its own merchant services.

Juspay’s Open-Source Move and Funding Talks

To address industry concerns, Juspay recently open-sourced its payment routing engine, Hyperswitch, allowing businesses to manage payment flows without being locked into proprietary technology.

Despite this, some payment gateways remain skeptical about how routing decisions are made.

Juspay is also reportedly in discussions to raise $150 million in funding, a move that could help expand its reach within the payments sector.

Industry-Wide Shift and Merchant Impact

PhonePe was the first to discontinue its partnership with Juspay in December, followed by Razorpay and Cashfree Payments. By eliminating third-party orchestration, these companies aim to strengthen direct merchant relationships and have greater control over transaction flows.

For merchants working with Paytm, the transition deadline is fast approaching. The company has assured businesses that its platform can handle high transaction volumes and support multiple payment methods, offering a more seamless experience.

Edited by Harshajit Sarmah