After facing over 24 hours of service outage following partner bank Yes Bank moratorium, consumer-facing digital payments app PhonePe has finally claimed to have restored its UPI payment services and digital wallet for users.
The company first enabled wallet and cards based payment, and afterwards, it claimed to restore UPI services, said Rahul Chari, CTO of PhonePe, who along with PhonePe team were working hard since last night to restore its payment services.
Entrackr team also checked the PhonePe app and found the same to be true. PhonePe is working fine with all the other banks apart from Yes Bank.
And we're back! pic.twitter.com/vJW23jLgTn
— PhonePe (@PhonePe_) March 6, 2020
Currently, the payment app has retained its old handle @ybl.
Earlier on Thursday evening PhonePe suffered an outage post its banking partner Yes Bank placed under moratorium by the Reserve Bank of India (RBI).
Founder and CEO Sameer Nigam acknowledged and expressed regret over the long outage their customers faced. “Our partner bank (Yes Bank) was placed under moratorium by RBI. The entire team has been working all night to get services back up asap,” he said yesterday in a tweet.
PhonePe’s competitor BharatPe’s users too faced the same issues. However, the Delhi-based firm’s services were only partially hit as it has ICICI Bank as its other banking partner.
PhonePe and BharatPe contribute a significant chunk in Yes Bank’s UPI volume. PhonePe, the Flipkart-owned digital payments firm, focuses on UPI-enabled peer-to-merchant (P2M) as well as peer-to-peer (P2P) payments, while BharatPe only offers P2M payments under its platform.
Several other startups who partner Yes Bank like Udaan, Neo-bank, Cashfree, MakeMyTrip, Myntra, Ezetap and Swiggy among many others have also been said to be partially hit due Yes Bank’s crisis.
The outage hampering fintech startups is likely to dent UPI transactions for the month. Yes Bank was one of the first banks to read the potential of UPI and launched the country’s maiden UPI-enabled payment app with PhonePe. It outran all the leading private banks, contributing over 39% of the total transactions registered on UPI in January this year.