Paytm and juspay
Also, suppose Paytm makes the routing algorithm fair (based on SR, cost etc), won't it mean less traffic for it's own PG and indirectly impacting revenue?
Arent these the same problems juspay will have when you become an aggregator?
Good point. But Juspay can afford to lose orchestration business if the aggregator business picks up. The commission rates are higher for aggregators than orchestrators.
But if Paytm focuses more on orchestration, it will lose PG business. Commission rates of PG are higher than orchestrators.
Paytm is going top down approach where as Juspay is going bottoms up!
these kind of news are always given out before qtrly results. nothing worthwhile will happen.
Can you explain the reason behind this ?
Paytm is still discussing about how to become profitable. For the last 3 years they have given roadmaps to profitability. None of them came true. Couple of month back , they announced restrictions to their lending business. Now suddenly a news article appears on how they are head to head with a competitor? These kind of PR's are from the 1980's.... Their PR team is probably ripping them off.
Paytm has no option but to go this route since they can’t on-board accounts on their payment aggregator business. It’s much easier to build an orchestrator than an aggregator — latter needs competence in banking ops and now, serious compliance, over and above the tech. Multiple country payments orchestration is definitely hot right now; in India too, there’s great scope to level up in orchestration.
Indian orchestration is pretty much a Juspay monopoly. They have priced themselves so low that it doesnt make economic sense for anyone else to get into this.
Issue is when cashfree and Razorpay eventually start causing issues for juspay the orchestrator. Juspay will move traffic to their own PA product and this is a battle that I am eagerly awaiting.
Optimizer crying in the corner 🤣🤣🤣🤣🤣🤣