Razorpay, Cashfree To Discontinue Partnership With Juspay

Following PhonePe’s suit, payment aggregators Razorpay and Cashfree also plan to discontinue all third-party partnerships and integrations with payment orchestration platforms such as Juspay.

“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,” a Cashfree Payments spokesperson said in a statement.

The development was first reported by The Head and Tale. 

Razorpay, in a statement, said it will pause all integrations with third-party payment orchestration platforms and will offer payment gateway services to its customers through direct integrations.

“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… We believe only through direct integrations, we can ensure our latest innovations reach our customers swiftly and enhance their operations and experiences seamlessly,” a Razorpay spokesperson said. 

However, digital payments solutions provider Pine Labs appears to have stuck by Juspay’s side and said that it will continue to work with other orchestration service providers.

“In the world of technology, open architecture and collaboration are extremely important. At Pine Labs, we will continue to foster this and our online platform will continue to partner with other orchestration platforms to provide the best experience for merchants and consumers,” Pine Labs founder and CEO Amrish Rau told Economic Times.

Payment orchestration platforms enable online merchants to manage multiple bank partnerships via just one payment gateway. Simply put, these platforms allow a merchant to route transactions to the right payment aggregator based on their higher success rate at that time.

Meanwhile, Juspay cofounder and chief operating officer (COO) Sheetal Lalwani told Inc42 that the departure of the two platforms would have no impact on the company’s business. He asserted that the company earns its revenues from merchants, adding that certain payment aggregators are denying their customers the freedom of choice. 

The development comes a month after digital payments giant PhonePe reportedly discontinued all third-party partnerships and integrations with payment aggregators, including Juspay. At the time, PhonePe said that the move would enable it to own the entire value chain and trim dependence on other players.

Meanwhile, Razorpay and Cashfree, too, have built their own orchestration platform namely Optimiser and FlowWise, respectively, but they are still in early stages. 

Founded in 2012 by Vimal Kumar and Ramanathan RV, and later joined by Lalwani, Juspay offers a technology platform that unifies payment gateways to give merchants a seamless, secure, reliable, end-to-end, enterprise-grade payment stack.