Paytm Moves To Begin Direct Payment Processing, Ends Third-Party Platform Use, In-Line With Razorpay, Cashfree, PhonePe

Paytm, an arm of One97 Communication has announced that it will discontinue the use of third-party payment orchestration platforms, including Juspay, as it transitioned to direct transaction processing through its in-house system. Paytm share price in trading in the green, up 2.15 per cent, at Rs 781.85, at 1:46 pm, on March 25, on NSE. The company enjoys a market capitalisation of Rs 49,862.66 crore. The company hit its 52-week high of Rs 1,062.95, on December 17, 2024, on NSE.

The move, first reported by Moneycontrol, indicated a broader trend in the fintech industry, where companies like Razorpay, PhonePe, and Cashfree Payments are moving away from intermediary platforms to strengthen operational control.

According to Paytm's notice to merchants, starting April 1, 2025, all transactions will be handled exclusively by Paytm Payments Services Limited (PPSL). To avoid potential disruptions, the company is advising businesses to migrate to the direct processing model before the deadline.

“Ensuring a seamless and efficient payment experience for our merchants remains a top priority. As part of this commitment, we are enhancing our payment gateway infrastructure. Effective April 1, 2025, PPSL will only support transactions routed directly through its platform and will no longer process payments via Juspay,” Paytm stated in its merchant notification.

As digital transactions have become increasingly secure and transparent, regulatory scrutiny has increased. In order to optimise transaction efficacy and imply compliance with changing payment regulations, Paytm eliminated third-party intermediaries.

Earlier this year in January, One97 Communications, the parent company of Paytm, recorded an overall loss of Rs 208.5 crore for the third quarter ending December 31, 2024. This is an improvement over the Rs 221.7 crore loss in the same period last year.

Paytm parent One 97 Communications on January 20, 2025, recorded a profit after tax (PAT) of Rs 930 crore for the September quarter, benefitting from a one-time exceptional gain of Rs 1,345 crore from the sale of its entertainment ticketing business,

It reported 11 per cent quarter-on-quarter (QoQ) revenue growth due to a 5 per cent QoQ growth in GMV, better realisation from devices, and a 34 per cent QoQ increase in financial services.