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Why Fintechs Are At War With Juspay
- After PhonePe, Razorpay, and Cashfree, Paytm has decided to discontinue integrations with payment orchestration platform Juspay, opting for direct integration with merchants instead.
- Juspay believes the disassociation with payment gateways will not impact its revenue since it primarily earns from merchants as a technology service provider.
- The exodus of payment gateways from Juspay began after it obtained a payment aggregator license, launching its service HyperPG, causing concern among fintechs about potential customer poaching.
- Juspay's routing engine offers rule-based and dynamic gateway ordering, with most merchants utilizing rule-based ordering to control traffic based on business priorities.
- Fintechs choose direct integration with merchants to retain control over the payment process and offer end-to-end services, like Razorpay's Optimizer and Cashfree's Flowise.
- Despite the conflict, Juspay remains a dominant player in payment orchestration, processing a large volume of transactions daily and playing a key role in BHIM's development.
- Juspay's financials show a decrease in net loss and a significant increase in operating revenue, with a focus on achieving adjusted EBITDA profitability in the current financial year.
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