Paytm Payments Services stops working with third-party platforms, moves to direct transaction processing

Paytm Payments Services, a subsidiary of digital payments major Paytm, has informed merchants that it will discontinue processing transactions from third-party routers such as Juspay and will only process transactions sent directly to its own payment gateway.

With this, Paytm joins the likes of Razorpay and Cashfree, which recently undertook a similar step.

In an email to merchants, reviewed by ET, Paytm stated that starting April 1, Paytm Payments Services Limited (PPSL) will handle transactions directly, eliminating transactions routed via Juspay.


The company also urged businesses to migrate before the deadline to ensure uninterrupted payment services.

The development was first reported by Moneycontrol.

In India, the relationship between payment aggregators and orchestration platforms has grown increasingly competitive as both expand into overlapping domains with rival products.

Juspay previously positioned itself as a platform enabling merchants to integrate with multiple payment gateways. It has argued that restricting third-party integrations could disrupt businesses and the broader payments ecosystem.

The company has also advocated for open-source and transparent payment technology, with its HyperSwitch platform designed to minimise merchant reliance on any single payment aggregator.

In February, Juspay secured a payment aggregator licence from the Reserve Bank of India, putting it in direct competition with companies such as Razorpay. However, co-founder Sheetal Lalwani had earlier told ET that the company did not intend to compete directly with other payment aggregators.