A widespread technical issue affected Unified Payments Interface (UPI) transactions across India on Monday evening, making it the third major disruption within the last month.
Users of major digital payment platforms such as Google Pay, PhonePe, and Paytm experienced transaction failures, leading to significant disruptions for both consumers and merchants.
A sharp spike in complaints on Downdetector indicates a widespread disruption in UPI services. Social media platforms are also flooded with user reports highlighting issues with digital payments. Attempts to make transactions via Paytm displayed an error message stating, “UPI app is facing some issues.”
Unified Payments Interface (UPI) transactions in India hit a record high of 18.30 billion in March, rebounding strongly after a 5% dip in February, when 16.11 billion transactions were recorded. The total transaction value for March stood at INR 24.77 lakh crore, reflecting a 12.8% increase from February’s INR 21.96 lakh crore.
PhonePe, which is preparing for its initial public offering (IPO), retained its dominant position in the UPI ecosystem during March. The fintech platform handled 864.7 crore transactions, representing 47.25% of all UPI transactions. Google Pay followed as the second-largest player, processing 36.04% of the total UPI transactions and contributing to 34.98% of the total transaction value.
In a move to boost digital payments among small vendors, the Indian government recently sanctioned an incentive program worth INR 1,500 crore, specifically aimed at encouraging low-value transactions conducted via the BHIM-UPI platform.