After PhonePe, Razorpay and Cashfree sever ties with third-party orchestration platforms

Cashfree confirmed the move and added that they will be offering direct integration to their merchants.

In a significant development, leading payment gateways Razorpay and Cashfree Payments have announced their decision to cut ties with third-party payment orchestration platforms, including Juspay.

“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 can ensure our latest innovations reach our customers swiftly and enhance their operations and experiences seamlessly," a Razorpay spokesperson told Moneycontrol.

Cashfree confirmed the move and added that they will be offering direct integration to their merchants.

"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 spokesperson said. Online media outlet Head and Tale reported the development first.

Razorpay and Cashfree's move comes just two months after fintech firm PhonePe said that it is ending its pact with Juspay, stopping third-party integrations for merchant payments.

However, Juspay said in a blogpost that they are not a payment intermediary but a Technology Service Provider (TSP) and said that this move will have no impact on its revenues.

"Merchants pay us for our software as it provides them value. We have no dependence on PGs for this revenue...For the last 12 years, we have forged deep partnerships with leading merchants, working as their extended payments teams, providing technology to simplify payments operations, providing deep payment domain expertise & collaborating with them on long term ecosystem initiatives," the Blogpost authored by Juspay's founder Sheetal Lalwani and Vimal Kumar said.

Payment orchestration is the process of simplifying the complexity of managing multiple payment methods, gateways, providers, banks, and issuers by consolidating them into a unified platform. It streamlines payment workflows, reduces disruptions, and enhances success rates.

Payment gateways often transition away from third-party payment orchestrators to gain end-to-end control over the payment process and enhance the security of payment transactions. In fact, fintechs like PhonePe and Razorpay have developed their own in-house orchestration platforms.