News | Tensions Rise in Fintech: Why Payment Gateways Are Cutting Ties with Juspay

Tensions Rise in Fintech: Why Payment Gateways Are Cutting Ties with Juspay

News

05 April 2025

2 min read

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A rift is growing in India’s digital payments ecosystem as several major payment gateways move to disconnect from Juspay, one of the country’s leading payment orchestration platforms. The move, which comes despite potential business losses, underscores rising concerns over competitive practices and operational transparency.

Juspay, which received a Payment Aggregator license from the Reserve Bank of India (RBI) in early 2024, has found itself under scrutiny. Industry sources claim the company may be routing transactions preferentially through its own payment gateway services—raising red flags among payment partners who view this as a conflict of interest.

The lack of transparency around routing practices and success rates has been a sticking point. To counter these concerns, Juspay recently open-sourced its routing engine code, offering stakeholders visibility into its operations. However, the gesture has not been enough to prevent top PGs from planning to phase Juspay out of their systems.

In response to these tensions, other major players like Razorpay and Cashfree have doubled down on building their own in-house payment orchestration tools—‘Optimizer’ and ‘Flowise’ respectively—to reduce dependence on third-party platforms like Juspay.

Despite the backlash from gateways, many merchants are pushing back, asking for extensions to continue using Juspay due to its reliability and performance—highlighting its still-critical role in the payment value chain.

As fintech infrastructure continues to evolve, this episode reflects the growing pains of an industry balancing innovation, regulation, and trust.

References:
Moneycontrol