Tag: payment apps

Highlights PPSL will discontinue third-party payment orchestration platforms like Juspay. Merchants will have to process transactions directly through PPSL, effective April. The move aligns with actions by fintech firms like PhonePe, Cashfree Payments and Razorpay Juspay is making its payment orchestration layer open-source, allowing merchants to self-host and integrate with payment gateways. Paytm to stop using third-party payment platforms. (Image credit - Shutterstock/Business Standard) Paytm Payments Services (PPSL) is making a big shift by asking merchants to stop using third-party payment orchestration platforms like Juspay. According to sources, this change will take effect in April, meaning all transactions will be processed directly through Paytm’s own business-to-business payments arm, without any external routing services. Paytm’s decision follows a trend set by other fintech companies like PhonePe, Cashfree Payments, and Razorpay, which made similar moves about two months ago. Paytm and Juspay don’t have a direct relationship, merchants use Juspay’s payment routing services because it connects with multiple payment aggregators (PAs). This orchestration helps merchants achieve better transaction success rates by dynamically selecting the best PA based on factors like downtime and transaction costs. Now, Paytm wants merchants to integrate directly with PPSL instead of relying on Juspay or similar platforms. A senior fintech executive shared, "We have understood that Paytm will also levy a one per cent additional fee on its merchants after they move away from Juspay. It indicates that companies are increasingly trying to enclose customers within themselves." This move aligns with Paytm’s competitors but it comes at a time when Juspay is trying a different approach, making its orchestration layer open-source so businesses of all sizes can use it as in-house software instead of relying on a third-party router. Juspay stated, "Merchants can self-host the solution in their own infrastructure, plug into the growing diversity of payment innovations globally, integrate with their preferred payment gateways, and define their own transaction rules with complete transparency and flexibility." However, industry experts are skeptical about how much of Juspay’s stack has truly been open-sourced. "When Juspay speaks of open source, it should first be understood what critical elements of the stack the company has opened," another fintech executive noted. Juspay claims its open-source model includes an advanced success rate optimisation algorithm, automatic failover for downtime protection, and rule-based routing with over 100 configurations. This shift marks a significant change in the digital payments space, with companies either locking merchants into direct processing (like Paytm) or offering open-source solutions (like Juspay) to stay competitive. FAQs Q1. What changes is Paytm Payments Services (PPSL) implementing for merchants? Answer. PPSL is asking merchants to stop using third-party payment orchestration platforms, like Juspay, and transition to direct transaction processing through PPSL starting in April. Q2. How does this decision align with industry trends? Answer. Paytm’s move follows similar actions by fintech companies like PhonePe, Cashfree Payments, and Razorpay, which have also shifted to direct processing to enclose customers within their ecosystems. Q3. What is Juspay's response to this shift in the industry? Answer. Juspay is offering its payment orchestration layer as open-source software, allowing merchants to self-host, integrate with preferred payment gateways, and define their own transaction rules flexibly. Also Read: Paytm Launches Receive Money QR Widget for Easy Payments on Android Also Read: Airtel Launches Airtel Safe Pay: India’s Safest Way to Pay Digitally

Tag: payment apps

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