SoftBank-backed Juspay, a payments technology firm, has open-sourced its payments routing engine as part of its broader open-source initiative, Hyperswitch.
This move comes at a critical time in India’s fintech space, following disruptions in the payments ecosystem, including the discontinuation of third-party payment routing services by players like Razorpay and Cashfree.
On January 20, leading payment gateways (PGs) Razorpay and Cashfree Payments have announced their decision to cut ties with third-party payment orchestration platforms, including Juspay.
In December of 2024, fintech unicorn PhonePe said that it was ending its pact with Juspay, stopping third-party integrations for merchant payments.
PhonePe, Cashfree and Razorpay have developed their own in-house orchestration platforms.
By making its routing engine open-source, Juspay is offering merchants full control over their payment infrastructure, allowing them to self-host the solution, integrate with preferred payment gateways, and set their own transaction rules.
The PGs were unhappy with Juspay’s payment routing engine that determines which PGs merchant should be using for a particular transaction.
"This eliminates dependency on third-party routers and provides greater transparency, flexibility, and customization in managing payments. Early adoption of the solution by several Indian and global merchants is already shaping its development, with community contributions driving its evolution," the firm's statement said.
Juspay plans to open-source additional components of the payments stack in the future,
Presently, the open-source routing engine includes three key features, Success rate optimization, downtime protection with automatic failover and rule-based routing with over 100 configurations.
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.
“Our vision is to make payments open, transparent, and accessible so businesses can focus on growth rather than payment complexities,” said Sheetal Lalwani, COO & Co-founder of Juspay.
“With this open-source launch, we are enabling merchants to build their own payment stack with complete freedom.
Founded in 2012 by Lalwani and Vimal Kumar, Juspay processes over 200 million transactions daily, with an annual total processed volume exceeding $670 billion. The company provides full-stack payment orchestration solutions and real-time payment infrastructure for enterprises and banks worldwide.
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