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ToggleOn Monday evening, a significant number of users faced challenges when attempting to conduct online fund transfers, primarily through PhonePe. Initially thought to be a widespread UPI outage, it was later clarified that the issue was limited to PhonePe, resulting from a shortfall in network capacity. This clarification came in response to the numerous complaints lodged by users experiencing difficulties with online transactions.
During the peak of the outage, attempts to make payments via PhonePe met with failure, displaying a message indicating that the “UPI app is experiencing some issues.” Users were advised to try sending money to an alternative account. The FAQ section assured users that any deducted funds would be reimbursed to their respective bank accounts within a few business days.
In a statement on X, Rahul Chari, Co-founder and CTO of PhonePe, explained that after a recent escalation in conflict, the company had initiated active disaster recovery drills, implementing enhanced cybersecurity measures across its network. He noted, “This evening, 100% of our traffic was managed through a newly established data center. Unfortunately, the surge in traffic during the peak hours exposed a shortfall in our network capacity, resulting in failed transactions.”
Chari continued, “We have since rebalanced our traffic across our other sites, and we are witnessing a recovery. We sincerely apologize for this incident and are committed to learning from it to further fortify our systems.”
According to data from Downdetector, over 900 users reported issues, with more than 80% indicating problems with fund transfers, around 20% citing concerns regarding the application itself, and only 2% reporting issues with the payment process. Fortunately, services have been restored and are functioning normally once again.
In response to the situation, many frustrated users took to X, sharing their experiences and venting their frustrations. Some found humor in the mishap, posting memes, videos, and witty commentary under the hashtag #UPIDown. Below are a few notable tweets capturing the sentiments of those impacted by the outage.
Use cards, UPI downtime seems common these days
— Richie issrani (@Richieissrani) May 12, 2025
UPI down
guys UPI kaam nahi kar raha hai
— SATYAM SHUKLA (@satyamshuk21) May 12, 2025
This 30-year-old grown man always broke with his UPI QR on timeline for people to send him money, hmm…
— down bad (@coneyisland4eva) May 12, 2025
UPI DOWN HAI KYA????
— Lumin⁷🐣 | ᶠᵘᵗᵘʳᵉ’ˢ ᵍᵒⁿⁿᵃ ᵇᵉ ᵒᵏᵃʸ ‘²⁵ (@jmnsmin) May 12, 2025
While the difficulties were primarily associated with PhonePe, many users also found themselves unable to complete transactions on Gpay and Paytm. This issue may have stemmed from increased traffic load on these platforms rather than a more extensive problem with the NPCI-managed UPI system itself.