A blackout of nearly 24 hours because of the Unplanned maintenance activity of PhonePe, an e-commerce payment system, and digital wallet company headquartered in Bangalore, got back into action with its UPI services.
UPI services are provided to users with a rollout phase strategy performed by the PhonePe platform to remove all the malfunctions.
RBI made a rare move recently as a temporary prohibition was applied against Yes Bank and all its sub-partners. Eventually, hitting its digital partners as well.
PhonePe provides UPI services through Yes Bank. And since RBI suspended YesBank. It has increased problems for PhonePe.
For ease of comeback, PhonePe began disbursing the trader’s balance, which had been stuck already as users would be facing difficulties affecting business continuity with the merchant base of 10 million.
Lately, PhonePe declares that the payment gateway has been restarted, allowing customers to pay by debit card, credit card, or Digi wallet. And yesterday, Rahul Chari, CTO of PhonePe, tweeted about the restoration of UPI payments as well as sharing happiness and love with the loyal users and merchants.
And we’re back! pic.twitter.com/vJW23jLgTn
— PhonePe (@PhonePe_) March 6, 2020
Phonepe and competitors suffer due to Yes Bank’s temporary suspension
Not only PhonePe was suffering from Yes Bank’s temporary suspension, but PhonePe’s competitor, BharatPe, also.
These two entities wrote to the Reserve Bank of India, seeking their permission to reassign the YBL handle to other banks.
Though in this, YBL got moved to ICICI Bank from Yes Bank at the technical end. Making no impact on customers of PhonePe and allow the company to continue its business as usual. Moreover, the risk of users to use any other UPI decreased.
With an estimation of 40 percent market share, PhonePe is one of India’s top UPI app.
It is to be believed that there’s been a drop of 50% in UPI payments only because of the outage during these last 24 hours.
“Due to strain on UPI network, the ” Check Account Balance” option was temporarily down in the app.” –
Google Pay tweeted.