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).