Consumer-facing digital payments app PhonePe has claimed to have bounced back to normal after being hit by its partner bank Yes Bank’s moratorium which led to a service outage for 24 hours on March 5.
The payment platform said that it has processed over Rs 4000 crore worth of transactions in 24 hours, which is the largest ever volume of user traffic in a single day (with over 70 million app sessions).
On Saturday, over 25 million customers used the PhonePe app, the company said in a statement.
At present, PhonePe has about 200 million customers.
Earlier on March 5, Bengaluru-based firm suffered a service outage after the RBI placed a moratorium on Yes Bank, which was the sole banking partner of PhonePe.
Yes Bank used to power the banking infrastructure for the Walmart-owned entity through its APIs. As a result of the RBI move, Yes Bank had stopped supporting PhonePe and many other fintech apps services.
Following complaints from users of not being able to perform transactions on the PhonePe app, the company claimed to have worked overnight with the National Payments Corporation of India (NPCI) and its new UPI partner ICICI Bank to ensure all its services were up within a day.
“We are grateful to RBI, NPCI, Yes Bank and ICICI for working collectively to ensure that millions of our customers and merchants were not inconvenienced a minute longer than necessary. The trust and loyalty our customer and merchant partners have reposed in us by coming back in larger numbers than ever before are truly humbling,” said Sameer Nigam, Founder and CEO PhonePe in the statement.
Post the migration to ICICI Bank, PhonePe’s users are able to continue to use their old UPI @ybl handles. The company has also been actively working on adding other PSP partners, in accordance with recent NPCI advisory released on March 2.
Several other startups who partner Yes Bank like BhartPe Udaan, Neo-bank, Cashfree, MakeMyTrip, Myntra, Ezetap and Swiggy have also been partially hit due to Yes Bank’s crisis.
The outage hampering fintech startups is likely to dent UPI transactions for this month.