Unified Payments Interface (UPI) services faced a major outage across India on Saturday, interrupting digital transactions on platforms such as PhonePe, Paytm, Google Pay, and several banking apps. The disruption lasted for over an hour and was reported across multiple regions and affected peer-to-peer transfers and merchant payments.
According to real-time outage monitoring service Downdetector, over 2,000 complaints were logged by midday, with users citing failed payments and delayed fund transfers as the primary issues. Reports indicate that the problem was not restricted to one service provider but spanned multiple platforms and banks, pointing to a broader issue within the UPI ecosystem.
This marks the third such incident in the past 20 days, as noted by Dainik Bhaskar, with previous service interruptions recorded on March 26 and April 2. Saturday’s outage began in the late morning and was resolved by early afternoon. However, no official timeline or cause has been released by the National Payments Corporation of India (NPCI), which operates the UPI network.
The disruption had a significant impact on small businesses that rely heavily on UPI for daily transactions. Retail, food, and service sector merchants suffered delays in payment. Many shopkeepers and delivery operators said they were not able to carry out transactions during peak hours, leading to decreased footfall and slow customer service.
In cities and towns where QR-based UPI payments have replaced cash transactions, especially among street vendors and local service providers, temporary inaccessibility to digital payments led to operational inconveniences. For many of these businesses, UPI is the primary mode of transaction, with limited access to card machines or POS alternatives.
While customers went into a frenzy on social media with screenshots and fretting, UPI apps and NPCI at that time had not made any formal statement. Industry observers pointed out that the absence of statements during such downtime can cause uncertainty among users, especially small-scale merchants who depend on such systems for a daily flow of revenue.
UPI, regulated by the Reserve Bank of India and widely adopted for its speed and zero-fee structure, processed over 13 billion transactions in March 2025 alone. The scale of adoption has brought with it the need for consistent uptime and communication protocols, particularly for micro and small enterprises that operate with thin margins.
As of now, services appear to have resumed, though stakeholders are awaiting clarification from NPCI on the technical cause and preventive measures moving forward.
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