Mint Explainer: Why Razorpay and Cashfree are ditching Juspay, and what it means for the fintech sector

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Subscribe to enjoy similar stories. On Monday, payment aggregators Razorpay and Cashfree announced their decision to transition away from third-party orchestration platforms such as SoftBank-backed Juspay to encourage merchants to use their in-house orchestration services. PhonePe made a similar move last year.

“Going forward, we will be pausing all integrations through third-party routing platforms. We will offer payment gateway services through direct integrations with our customers," a Razorpay spokesperson said. A spokesperson for Cashfree said, “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." Also read: Spat over, BharatPe says back on track for profitability and an IPO News portal The Head and Tale was the first to report the development. The news quickly caught the attention of the fintech world. While payment aggregators such as Razorpay and Cashfree stand to benefit, Juspay’s dominance of the multibillion-dollar orchestration space, from where it earns about 90% of its revenue, could be under threat.

There could be implications for the wider fintech industry, too, as companies look to build all-in-one solutions rather than rely on third parties for specific services. Let’s take a closer look. An orchestration platform like Juspay works with businesses to facilitate payment flows across multiple gateways such as Razorpay, Cashfree and PayU, as well as banks and other providers.