 "PhonePe discontinues its partnership with payment aggregator Juspay")
Digital payments major PhonePe discontinued its partnership with payment orchestration platform Juspay citing its plans to directly integrate its payments solutions for its merchants.
The move will allow the Walmart-backed fintech firm to offer an integrated payment flow, from transaction origination to final settlement, to the merchants that it services.
The Bengaluru-based company has a network of over 40 million merchants.
“As a payment aggregator, one of our core roles is to provide the best in class success rates to our merchants through our solutions. We are able to do it consistently for merchants directly integrated with us and hence have decided to not offer our solutions through any payment orchestration platform,” a PhonePe spokesperson said in a statement.
The spokesperson added that going forward, the company will offer our solutions to merchants through direct integrations only.
“PhonePe has communicated its decision to discontinue engagement with payment orchestration platforms, including Juspay, in favor of direct integrations. This move will have a negligible impact on Juspay's business as merchants will continue to value the flexibility and freedom of choice that they get by working with us,” Juspay said in a statement.
More From This Section
The company added that it has partnerships with merchants where it provides them with payment solutions.
Juspay is an online payment aggregator (PA). It received a final nod to operate as a PA in February this year.
Digital payment companies partner with payment orchestration platforms such as a payment aggregator to primarily improve transaction success rates.
The platform evaluates available methods and gateways factoring in various aspects that may lead to the culmination of a transaction such as speed, costs involved, reliability, among others.
It routes transactions through the most efficient payment gateway at a particular time. Essentially, in case where a primary payment gateway is experiencing a downtime, the platform is responsible to reroute the transaction to another gateway preventing disruption of services.