Paytm Payments Services Stops Working With Third-Party Platforms, Adopts Direct Transaction Model

Paytm Payments Services, a Paytm subsidiary, has informed merchants that it will stop processing transactions from third-party routers like Juspay and will only accept transactions directly through its own payment gateway.

With this, Paytm follows Razorpay and Cashfree which have made similar changes.

Starting April 1, Paytm Payments Services Limited (PPSL) will process transactions directly, eliminating those routed via Juspay. 

The company says this move aims to provide merchants with a smoother and more reliable payment experience.

The company has also asked businesses to switch before the deadline to avoid any disruptions in payment services.

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"We appreciate your trust in PPSL as your payments partner. Our priority remains providing an optimized and efficient payment experience. To further enhance these services, PPSL will process transactions directly and will no longer support transactions routed via Juspay from April 1, 2025," Paytm informed merchants in the email.

Juspay, which used to help merchants connect with multiple payment gateways, has expressed that limiting third-party integrations could affect businesses and the overall payments system.

Juspay has supported open-source and transparent payment technology, with its HyperSwitch platform designed to reduce merchants' dependence on a single payment provider.

PhonePe was the first fintech to end its partnership with Juspay in December. After that, Cashfree and Razorpay also made the same decision.

Earlier, Juspay said that payment aggregators (PAs) or gateways (PGs) that refuse to work with merchants will eventually lose out, impacting both the merchants and the entire payments ecosystem.

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