In a rare disruption that affected millions of digital transactions across India, the Unified Payments Interface (UPI) experienced a widespread outage on Saturday, leading to transaction failures and delays for users of multiple digital payment platforms. The glitch, which began in the early afternoon, triggered a flood of complaints on social media platforms as users reported being unable to send or receive money using popular UPI apps like Google Pay, PhonePe, Paytm, and BHIM.
The National Payments Corporation of India (NPCI), which manages UPI infrastructure, acknowledged the issue in a brief statement:
“We are aware that some UPI services are currently facing intermittent issues. Our technical teams are actively working to resolve the matter. We regret the inconvenience caused and appreciate your patience.”
The NPCI did not provide specific details about the root cause of the disruption, but it assured users that efforts are underway to restore normalcy at the earliest. Several banks also confirmed on their social media handles that they were facing temporary disruptions in UPI services and were coordinating with NPCI to restore operations.
Impact Across Platforms
Major payment apps reported partial or complete outages:
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PhonePe acknowledged “intermittent issues with bank partners” and said it was monitoring the situation closely.
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Google Pay issued a message within its app informing users about “higher-than-normal transaction failures.”
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Paytm encouraged users to retry transactions later, citing backend connectivity issues.
Retailers and merchants who rely heavily on UPI for point-of-sale payments also voiced concern. “We had to turn away several customers or ask for cash payments. It’s a reminder of how dependent we’ve become on UPI,” said Rajeev Sharma, a grocery store owner in Delhi.
UPI – A Backbone of India’s Digital Economy
UPI has grown exponentially over the past few years, processing more than 12 billion transactions monthly as of early 2025. Its popularity stems from its ease of use, interoperability across banks and apps, and near-instant settlement times. However, Saturday’s disruption has highlighted concerns about the reliability and load-bearing capacity of the UPI infrastructure, especially during peak hours or festive seasons.
Experts Weigh In
Digital finance experts have urged stronger infrastructure investments and failover mechanisms to prevent similar outages in the future. “While outages are rare, the impact is significant. It’s vital to implement robust backup systems to ensure continuity,” said Rachna Mehta, a fintech analyst based in Mumbai.
As of late evening, some UPI services began to show signs of recovery, though users were still advised to expect intermittent failures and delays until full services resume.
For now, users are advised to check their payment app notifications or bank alerts for the latest updates and consider alternative modes of payment where possible.
