In a significant strategic move, Paytm Payments Services Limited (PPSL) has announced it will discontinue using third-party payment platforms like Juspay, opting instead to integrating directly with merchants. 

The company will stop supporting transactions routed via third-party engine like Juspay, effective April 1.

The Noida-based fintech firm has communicated with its partners, requesting them to start accepting payments directly through PPSL. 

This strategic shift is not unique to Paytm. PhonePe was the first one to cut third-party routing support in December. In January, The Head and Tale exclusively broke the news of Razorpay and Cashfree moving away from third-party routers. The move signals a potential industry-wide movement towards more direct payment processing methods.

In its communication, PPSL emphasized its commitment to offering a more seamless and reliable payment infrastructure for its merchant base. The company views this transition as a critical step in strengthening its position as a leading payment solutions provider.

In response to the termination of partnerships by leading payment companies, the Bengaluru-based fintech unicorn Juspay said it has open-sourced its payment orchestrator. The open-sourced payments-routing engine, Hyperswitch, will allow merchants to self-host the solution within their infrastructure, enabling them to integrate with a diverse range of payment providers while defining their own transaction rules.

Founded in 2012 by Vimal Kumar and Ramanathan RV, Juspay has till date raised $88 million from the likes of Accel Partners, Softbank among others. In FY24, Juspay reported Rs 319 crore in revenue from operations -- almost 50% increase from Rs 213 crore reported a year ago. And, the losses narrowed to Rs 97.54 crore compared to Rs 105.75 crore in FY23.