- PhonePe’s servers crashed drastically on late Thursday night after ongoing issues with YES Bank.
- Soon after this catastrophic fall, PhonePe partnered with ICIC Bank and within 36 hours it was revived again.
The day YES Bank announced ₹50,000 cash withdrawals due to internal issues, chaos prevailed not only among customers but also with PhonePay. Its servers went down and users of the app were not able to utilize PhonePay’s platform.
The PhonePe team was in shock as it experienced an outrage with the RBI moratorium on YES Bank. Initially, the payment app – PhonePe built its servers with YES Bank.
After realizing the catastrophic downfall of the private bank, PhonePe quickly shifted its servers from YES Bank and shook hands with another private bank ICICI Bank.
“Friday was an extraordinarily difficult situation with little precedence. We are grateful to RBI, NPCI, YES Bank and ICICI for working collectively to ensure that millions of our customers and merchants were not inconvenienced a minute longer than necessary. I would also like to take a moment to appreciate the mammoth effort to all the PhonePe employees who worked tirelessly for 36 hours straight with a singular focus on getting all our customers and merchants services live as fast as possible.” – Sameer Nigam – Founder and CEO PhonePe.
Anything Special Happened After Partnering with ICICI Bank?
Well, first things first. You have been contributing towards India being a digital economy so you download the PhonePe app which allows you to make payments digitally.
One morning you notice that the app isn’t working at all due to ongoing chaos with YES Bank. This will definitely come with rage and chaos!
All of a sudden you will feel like you have no other medium because the current payment transfer app you have been using for a long time crashed drastically.
But the start-up PhonePe was quick to stand up once again. This time it joined with a reputed private bank – ICICI Bank and it took some 36 straight hours to put on its servers with the ICICI Bank.
Which resulted in the good news. Soon after getting partnered with ICICI Bank, PhonePe witnessed transactions that touched ₹4000 crores mark in a single day with 70 million app sessions.
“The trust and loyalty our customer and merchants’ partners have reposed in us by coming back in larger numbers than ever before is truly humbling” – Sameer Nigam added.
Moment Marketing Done Right by Paytm
During the time when PhonePe was struggling with its servers, PayTm popped with a simple message telling the internet that its platform is working fine and adopted by a lot of people.
Today is the day when a single mistake is enough for others to highlight it and turn the tables in their favor.
Summing Up:
Times are still tough for the private bank YES Bank, but for PhonePe it is a piece of some happy news after reviving its servers and partnering with ICICI Bank.
Approximately 55 million monthly active users are said to be on PhonePe who use the app for all kinds of big and small payments. But nobody thought that after getting back its servers, the payment app would witness transactions of this huge amount.
Which signals 2 things. First being, the user base of PhonePe and their propensity to spend is behemoth which cannot be compromised again for whatever reasons. Secondly, it’s just one of the payments app in India’s digital payments ecosystem.
We hope that PhonePe becomes stable for long after partnering with ICICI Bank and both the entities gain only good things from each other.
