The unified payments system went out for a period which lasted for over an hour recently. The short failure meant that people across the country could not use their Unified payments system accounts to make transactions at all.
People went on social media to voice their thoughts about the failure as people weren’t able to use Gpay, PhonePe, iMobilePay or any fintech payment service. People realised that it was not a problem from their side as whole sleuths of people from all around the country weren’t able to complete transactions using these apps.
This is not the first time that the service has failed just this year as in on the 9th of January. It has even failed multiple times in the previous year as well. The National Payments Corporation of India took still has not acknowledged, announced or apologized about the temporary breakdown.
The unified payments interface mode of payment has gained popularity by leaps and bounds every year ever since its inception 6 years ago in April of 2016. Currently, around 60% of all retail transactions and deal use the UPI as a mode of payment.
Unified payments interface has become so popular that you can see the QR codes for them in almost every shop you enter. From the road side tea shops to the high-end upscale restaurants. From your local grocery store to the multi-level department store. They all have provisions for you to pay using the UPI.
The introduction of budget smartphones alongside a massive middle class has really accelerated the use of UPI as it has become the second most common method of payment just behind cash transactions in the country. For the fiscal year of 2021-22, UPI transactions crossed $1 trillion USD which shows that the system is heading in the right direction.
In just the month of March, total UPI transactions crossed the Rs. 500 crores mark.
Perhaps the rapid increase is one of the reasons that the servers are not able to withstand it which causes the failures. The rise of the coronavirus pandemic along with the lockdowns forced people to look for options to pay for things quickly and without contact which the UPI was able to solve perfectly.
It is a very safe and convenient method of payment which are the two biggest advantages, but the regular failures and server breakdowns make it unreliable at times. The UPI has the potential to be the biggest service fintech has to offer but for now, it is a work in progress.