Daybreak A hair away from unicorn status, but Juspay just can't catch a break
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Feb 17, 2025 This discussion reveals the rollercoaster journey of Juspay as it inches closer to becoming a unicorn. The company faces a challenging landscape, having lost crucial partnerships with notable fintechs like Phonepe, Razorpay, and Cashfree. Merchants are caught in a dilemma: stay loyal to Juspay or switch strategies? The stakes are high, with potential ripple effects on the entire payments industry. Additionally, there's a strategic challenge posed to business leaders, highlighting the fierce competition within quick commerce and payment orchestration.
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Juspay's Role
- Juspay, a payment orchestrator, routes payments across multiple aggregators like Phonepe and Razorpay.
- It selects the optimal route based on commission rates, success rates, and payment methods.
The Fallout
- Juspay obtained a payment aggregator license in early 2024 and began prioritizing its own aggregator, HyperPG.
- Phonepe, Razorpay, and Cashfree subsequently severed ties with Juspay, viewing it as a competitor.
Orchestrator's Importance
- High-volume merchants, like Swiggy and BookMyShow, use payment orchestrators to ensure smooth transactions.
- Orchestration generates over half of Juspay's revenue, highlighting its importance.