In April 2025, the Unified Payments Interface (UPI) ecosystem saw a total of 17.89 billion transactions, showcasing the continued growth of digital payments across India. PhonePe and Google Pay retained their dominant positions, processing 836 crore and 648 crore transactions, respectively, solidifying their leadership in the UPI market.

Meanwhile, FamApp, formerly known as FamPay, made a remarkable leap in the UPI rankings. With nearly 10 crore transactions processed during the month, FamApp surpassed Amazon Pay to become the eighth-largest UPI player. This milestone highlights FamApp’s growing user base and its expanding role in India’s digital payments landscape.

The strong performance of these platforms reflects the increasing adoption of UPI as a preferred method for digital transactions, particularly among consumers in urban and rural areas alike. As UPI continues to drive India’s cashless economy, FamApp’s rise in the rankings is a testament to its innovative offerings and the competitive nature of the digital payments industry.

Digital payments giant PhonePe experienced a service disruption on Monday around 7:30 pm, according to sources familiar with the matter. While the exact cause of the outage remains unclear, a banker speculated that network issues or problems with the app’s customer database might be to blame. The disruption prevented PhonePe from processing person-to-person (P2P) transactions and also hindered its ability to locate accounts linked to upi IDs.

Users quickly took to X (formerly Twitter) to report issues with one of India’s most popular UPI-based payment platforms. PhonePe, backed by Walmart, processed a record 8.3 billion transactions in April 2025 and holds over 45% of the UPI market share. UPI as a whole settled more than 17 billion transactions in April.

This service disruption follows two significant outages on the UPI platform, which is operated by the National Payments Corporation of India (NPCI).

Unified Payments Interface (UPI) services suffered a major disruption across India on Monday evening, marking the third outage in less than a month. Users of popular digital payment apps—such as PhonePe, Google Pay, and Paytm—reported failed transactions and significant delays in fund transfers.

Downdetector, a service that tracks real-time issues with online platforms, recorded a sharp spike in complaints beginning in the early evening. Over 500 reports were submitted, with 80% related to fund transfer failures, followed by app functionality issues (20%) and payment problems (2%).

Social media platforms were quickly flooded with user reports, screenshots, and complaints about failed payments and app crashes. Many users confirmed either prolonged delays or complete outages when attempting upi transactions. The hashtag #UPIdown trended as frustrated users shared their experiences—some venting, others injecting humor through memes and videos.

As of now, the National Payments Corporation of India (NPCI) has not issued an official statement on the cause of the disruption. However, the recurring nature of these outages has raised growing concerns about the reliability of UPI, a system that underpins a significant portion of India’s digital economy.

A widespread technical glitch disrupted Unified Payments Interface (UPI) transactions across India on Monday evening, marking the third major outage in less than a month. Users of leading digital payment platforms—including Google Pay, PhonePe, and Paytm—faced transaction failures, causing significant inconvenience for both consumers and businesses.

A surge in complaints on Downdetector reflected the scale of the disruption, while social media platforms were flooded with user reports detailing issues with digital payments. Many Paytm users encountered an error message reading: “UPI app is facing some issues.”

The outage comes amid a period of strong growth for UPI. In March, UPI transactions in India hit a record 18.30 billion, rebounding from a 5% dip in February, which saw 16.11 billion transactions. The total transaction value for March stood at ₹24.77 lakh crore, marking a 12.8% rise from February’s ₹21.96 lakh crore.

PhonePe maintained its leading position in the UPI space during March, processing 864.7 crore transactions—accounting for 47.25% of all UPI activity. Google Pay followed with a 36.04% share of transactions and 34.98% of the total transaction value.

Meanwhile, in a bid to promote digital payments among small vendors, the Indian government has approved a ₹1,500 crore incentive scheme aimed at encouraging low-value transactions via the BHIM-UPI platform.

Google Pay is once again pushing the boundaries of digital payments with the launch of its game-changing voice-activated UPI payment feature. As part of its ongoing efforts to simplify and innovate within the digital finance space, Google Pay is introducing a feature that will allow users to make UPI payments simply by speaking. This addition is set to revolutionize how millions of people in India make payments, making the process more intuitive, seamless, and accessible than ever before.

The Convenience of Voice-Activated Payments

Gone are the days when users had to manually enter recipient details, payment amounts, and navigate through various screens in the app. With the new voice-activated feature, all users need to do is speak. Whether you’re sending money to a friend, paying a merchant, or settling a bill, all it takes is a simple voice command like “Pay ₹500 to [Name]” or “Send ₹1000 to [Merchant Name] for groceries.” The AI-powered system will process the transaction instantly, taking the hassle out of manual payment inputs and reducing the risk of errors.

This voice-based technology offers significant convenience, particularly for those on the go. Busy individuals, drivers, and multitaskers can now make payments without needing to stop and interact with their phone’s interface, making the entire experience quicker and more efficient.

Making Payments More Accessible

In a country like India, where literacy rates can vary and many users may not be fully comfortable with typing or navigating digital interfaces, this voice-activated feature offers a new level of accessibility. By allowing transactions to be initiated with simple spoken commands, Google Pay is breaking down barriers for individuals who may face challenges using traditional payment methods. This feature also holds the potential to bring digital finance to rural and underserved populations, ensuring that everyone, regardless of literacy levels or tech-savviness, can participate in the digital economy.

Further enhancing this accessibility, the system will support multiple local languages through its integration with the Government of India’s Bhasini AI project. This will allow users to interact with Google Pay in their native language, ensuring that voice-based transactions are possible for people across different regions and linguistic backgrounds. For instance, a user could simply say “Pay ₹500 for groceries” in Hindi, Tamil, or any other supported language, making it easier to use the app in diverse contexts.

Boosting Security with AI and Machine Learning

Alongside improving user experience, Google Pay is also doubling down on security. The voice-activated payment system leverages artificial intelligence and machine learning to ensure that transactions are safe and accurate. The AI system will verify and authenticate voice commands, ensuring that only authorized users can make payments through their voice. This helps prevent fraudulent transactions and adds an additional layer of security to the payment process.

Moreover, Google’s advanced machine learning algorithms will constantly adapt to understand the user’s voice patterns, accents, and speech nuances, ensuring a high degree of accuracy in voice recognition. This technology will also reduce the likelihood of mistakes or misinterpretations during transactions.

Strengthening Google Pay’s Position in the UPI Market

As of late 2024, Google Pay is one of the leading players in the UPI payment space, holding a 37% market share, just behind PhonePe’s 47.8%. Together, Google Pay and PhonePe dominate the UPI landscape, accounting for more than 80% of the market. This new voice-activated feature is poised to give Google Pay an even greater advantage, attracting more users and further cementing its position as a top choice for UPI transactions.

The integration of voice technology into Google Pay could also lead to increased adoption of digital payments among the wider Indian population, including those who may not have been as familiar with app-based payments. For people who already rely on UPI for their transactions, this new feature offers an extra layer of convenience and modernity, making it even more appealing.

The Future of Digital Payments

This voice-activated UPI payment feature marks just the beginning of what could be a transformative shift in how digital payments are made in India and beyond. As Google continues to invest in AI, machine learning, and voice recognition technologies, we can expect more advanced and user-friendly payment solutions to emerge. Whether it’s enhancing the safety of online transactions or enabling users to pay in their local language, Google Pay is determined to stay at the forefront of innovation in the digital payment space.

In conclusion, Google Pay’s voice-activated UPI payments are set to make digital transactions easier, faster, and more inclusive. With a focus on accessibility, security, and user experience, this feature has the potential to not only revolutionize how people make payments but also drive the adoption of digital payments in India’s rapidly growing economy. Get ready for a smarter, safer, and more convenient way to make payments with Google Pay—your voice is all you need.

Millions of Google Pay users are about to experience a major upgrade with the introduction of a new AI-powered feature. Soon, users will be able to make UPI payments using just their voice, making transactions faster and more accessible. The company has confirmed that the development of this feature is already underway and expected to roll out soon.

Sharath Bulusu, Lead Product Manager for Google Pay in India, highlighted that this voice functionality will significantly simplify the payment process for users. However, specific details about how the feature will work are still under wraps. This new addition is expected to be a game changer, especially for those who regularly rely on UPI for their digital transactions.

A Transformative Voice Feature

The introduction of voice-activated payments in Google Pay is set to be a breakthrough, particularly for people who may face literacy challenges. With this feature, users will be able to complete transactions entirely through voice commands. Additionally, Google is working closely with the Government of India on the Bhasini AI project, which aims to make payments more accessible in local languages. Google’s ongoing investment in machine learning and AI technologies also promises to address the growing issue of cyber fraud in India, ensuring safer online payments.

Google Pay’s Dominance in the Market

In India, Google Pay and PhonePe are the two dominant players in the UPI payment space. As of November 2024, Google Pay holds a 37 percent share of the total UPI transactions, while PhonePe leads with 47.8 percent. Together, these two platforms make up over 80 percent of the UPI market. With the upcoming launch of the voice command feature, Google Pay is poised to attract even more users, strengthening its position as a leader in the digital payments sector.

Karnataka Bank Ltd, a leading private sector lender, has reported suspicious cross-border Unified Payments Interface (UPI) transactions amounting to ₹18.87 crore to the Reserve Bank of India (RBI). The bank identified these transactions as unusual and flagged them for further investigation by regulatory authorities.

Details of the Transactions

According to sources, these transactions involved fund transfers through UPI to international accounts, raising concerns over potential misuse of the digital payment system. Karnataka Bank, adhering to its internal monitoring protocols, detected anomalies in these transactions and promptly escalated the matter to the RBI as part of its compliance obligations.

Regulatory Scrutiny and Actions

The RBI is expected to conduct a detailed probe into the nature of these cross-border transactions to determine whether they involve fraud, money laundering, or other financial irregularities. Regulatory authorities may also seek inputs from law enforcement agencies to examine if these transactions have links to any illicit activities.

Karnataka Bank has assured that it is fully cooperating with the regulators and has taken preventive measures to strengthen its internal monitoring mechanisms. The bank is also working closely with financial intelligence units to analyze transaction patterns and identify any potential loopholes in the system.

Growing Concerns Over Digital Payment Security

With the rapid expansion of UPI-based transactions, concerns over security and fraud prevention have become more pressing. While UPI has revolutionized digital payments in India, cases of unauthorized transactions, cyber fraud, and financial crime have also increased. Regulatory bodies, including the RBI, have been taking steps to introduce stricter compliance norms and enhance the security framework for digital payments.

Conclusion

Karnataka Bank’s proactive reporting of suspicious UPI transactions reflects the increasing focus on transparency and compliance in the banking sector. As the investigation unfolds, further clarity on the nature and impact of these transactions will emerge. Meanwhile, banks and regulators continue to emphasize the importance of secure and responsible use of digital payment platforms to safeguard the financial ecosystem.

The National Payments Corporation of India (NPCI), which regulates UPI transactions in India, has announced changes aimed at improving the chargeback process. These changes, set to take effect from February 15, focus on automating the acceptance and rejection of chargebacks, reducing manual intervention, and ensuring smoother dispute resolution.

What’s Changing?

Currently, when a chargeback is raised, it requires manual verification and processing by banks, leading to delays, errors, and potential penalties. NPCI is now automating the process by introducing a system where chargebacks will be automatically accepted or rejected based on Transaction Credit Confirmation (TCC) and return data provided by the beneficiary bank.

Under this new system:

• The beneficiary bank must raise a TCC or a return after the chargeback is initiated.
• Based on this, the system will automatically determine whether the chargeback should be accepted or rejected.
• This eliminates the need for banks to manually review every chargeback, making the process faster and more efficient.

This automation will be applied only to bulk chargeback processing and the Unified Dispute and Issue Resolution (UDIR) system. However, these changes will not be visible to customers through banking apps and will be handled internally by financial institutions.

What Are Chargebacks?

A chargeback occurs when a UPI transaction, initially deemed successful, is reversed by the issuing bank, acquiring bank, or NPCI before the recipient’s bank fully processes it. Chargebacks are typically initiated when there is a dispute regarding a transaction.

When Do Chargebacks Occur?

Chargebacks can be triggered under the following circumstances:

1. Unrecognized Transactions – A customer does not recall or recognize a transaction on their account.
2. Disputed Transactions – A customer raises a complaint about a payment with their bank.
3. Non-Delivery of Goods/Services – A customer is charged for an item that was never delivered.
4. Processing Errors – A transaction is processed twice due to a technical error.
5. Duplicate Charges – A merchant accidentally charges a customer multiple times for the same purchase.

Chargeback vs. Refund: What’s the Difference?

Many people confuse chargebacks with refunds, but they are two distinct processes:

• A refund occurs when a customer directly requests the merchant or payment service provider (such as a upi app) to return their money.
• A chargeback, on the other hand, is initiated by the bank when a customer disputes a transaction, and the bank investigates before processing the reversal.

While refunds are a more straightforward process handled between the merchant and the customer, chargebacks involve multiple banks and regulatory processes, making them more complex.

Why Are These Changes Needed?

Currently, chargebacks can be initiated on the same day as the transaction, leading to multiple challenges:

• Banks often do not have enough time to verify and process returns before chargebacks are raised.
• Some banks mistakenly initiate refund requests without checking if a chargeback is already in process.
• In such cases, chargebacks are automatically accepted on a deemed approval basis, which can result in penalties from the Reserve Bank of India (RBI).

By introducing automated acceptance and rejection, NPCI aims to:
✅ Reduce the time taken to resolve disputes.
✅ Minimize errors caused by manual processing.
✅ Prevent unnecessary penalties due to mismanagement of chargebacks.
✅ Streamline the UPI ecosystem for both banks and customers.

How Will This Affect Customers?

For regular upi users, this change will not directly impact how they make payments or raise disputes. The improvements are being made behind the scenes to ensure that chargebacks are processed more efficiently.

• If a customer raises a dispute, their bank will still handle it as before.
• The difference is that banks will now have an automated system to decide whether the chargeback should be approved or rejected based on TCC and return data.

Final Thoughts

With upi being one of the most widely used digital payment systems in India, ensuring a smooth and error-free chargeback process is crucial. These new changes will help banks and payment providers handle disputes more effectively, ultimately enhancing trust in the UPI ecosystem.

As the February 15 implementation date approaches, banks and payment service providers will update their systems to comply with the new guidelines, ensuring a faster and more efficient chargeback resolution process for all stakeholders.

The Securities and Exchange Board of India (SEBI) has proposed a significant enhancement to the UPI (Unified Payments Interface) payment system for capital market transactions. This move aims to strengthen investor security, reduce fraudulent activities, and improve payment transparency by ensuring that funds are directed only to legitimate, SEBI-registered market intermediaries.

The proposal introduces multiple security features, including unique UPI IDs for registered intermediaries, a verification icon for payment authentication, and an increased daily UPI transaction limit of ₹5 lakh. The changes seek to create a secure and streamlined environment for investors engaging in stock trading, mutual fund investments, and other financial activities within the capital markets.

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Key Features of the Proposed UPI Mechanism

SEBI plans to assign each registered market intermediary a unique alphanumeric UPI ID. This identifier will help investors verify the authenticity of intermediaries before making payments. It serves as a critical layer of protection against fraud, as unregistered entities often mislead investors and collect funds unlawfully.

Verification Icon for Payment Authenticity

To further enhance security, SEBI proposes a distinct verification icon—a “thumbs-up” symbol within a green triangle—that will appear when payments are made to verified intermediaries. This visual indicator will assure investors that their funds are being directed to legitimate entities.

If this verification icon is missing, investors will be alerted that the intermediary may not be registered with SEBI, signaling potential fraud.

Increased Daily UPI Transaction Limit

To facilitate higher-value transactions securely, SEBI proposes raising the current UPI transaction limit from ₹2 lakh to ₹5 lakh per day. This change will be implemented in collaboration with the National Payments Corporation of India (NPCI), which operates the UPI framework.

The increased transaction limit will be particularly beneficial for investors making large-scale investments in stock trading, mutual funds, and other financial instruments. SEBI has indicated that the limit will be reviewed periodically to ensure it continues to meet market demands.

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Addressing Rising Fraud in Capital Markets

Since 2019, when SEBI permitted UPI payments in the securities market, the number of fraudulent activities involving unregistered entities has grown. These entities often impersonate legitimate market intermediaries, collecting funds from unsuspecting investors under false pretenses.

SEBI’s proposed secure UPI payment framework is a response to these increasing risks. By introducing unique UPI IDs and a verification system, SEBI aims to minimize fraud and foster greater trust in digital transactions within the capital markets.

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How Will These Changes Benefit Investors?

1. Enhanced Security:
   The unique UPI ID and verification icon will help investors confidently identify legitimate intermediaries and avoid fraudulent transactions.
2. Higher Transaction Limits:
   The increased UPI limit of ₹5 lakh per day will enable smoother and safer high-value transactions, reducing the need for traditional payment methods that may involve longer processing times.
3. Greater Transparency:
   By directing payments solely to registered market intermediaries, SEBI’s framework will promote transparency and accountability in financial transactions.
4. Reduced Fraud:
   The mechanism will act as a deterrent against unregistered entities attempting to deceive investors.

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Public Consultation and Stakeholder Involvement

To ensure a well-rounded and effective implementation, SEBI has invited public comments on the proposal until February 21, 2025. This consultation period allows stakeholders, including investors, market intermediaries, and industry experts, to share their feedback and suggestions.

By seeking public input, SEBI aims to develop a payment mechanism that aligns with the needs of the capital markets while safeguarding investor interests.

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Conclusion

SEBI’s proposal for a secure UPI payment mechanism underscores its commitment to strengthening investor protection and enhancing market transparency. The introduction of unique UPI IDs, verification icons, and higher transaction limits marks a significant step forward in creating a safe and efficient payment ecosystem for capital market transactions.

As SEBI works to finalize the framework, collaboration with stakeholders and adherence to robust security measures will be crucial in building a trusted digital financial environment.

HDFC Bank has issued a notification informing customers about the temporary unavailability of its Unified Payments Interface (UPI) services due to scheduled system maintenance. This service suspension is necessary to improve system performance and ensure a smoother transaction experience in the future.

Key Details:

• Date: February 8, 2025
• Downtime: 12:00 AM to 3:00 AM (Saturday)
• Duration: 3 hours
• Affected Services:
  • UPI transactions for current and savings account holders
  • Payments and transactions involving RuPay credit cards linked to UPI

During the maintenance window, customers will not be able to initiate or complete UPI-based transactions. This includes peer-to-peer transfers, bill payments, merchant transactions, and other UPI-related services through HDFC Bank’s platform.

Advice to Customers:
To avoid disruptions, customers are strongly encouraged to plan and complete any critical transactions before the maintenance period. This will help ensure a seamless banking experience without interruptions during the downtime.

Customer Support:
HDFC Bank remains committed to providing assistance to its customers. In case of any queries or concerns, customers can reach out to the bank’s customer service helpline or use alternative payment methods during the affected hours.

The bank appreciates the understanding and cooperation of its customers as it works to enhance its digital payment infrastructure for a better service experience.