PhonePe, Swiggy, Flipkart Affected By Yes Bank Crisis: Report

The crisis at Yeah Bank is affecting not but depositors and investors, but also many third-party merchants and financial service providers. PhonePe is 1 such entity that has been facing a complete outage over the past 24 hours with users not being able to brand any transactions post-obit the desperate action that led to a halt in UPI transactions via Yes Bank.

However, while PhonePe's travails over the past couple of days have been well-documented, a report from NDTV at present suggests that other companies like Swiggy and Flipkart are too being adversely impacted by the developments. All these companies, in case y'all're wondering, employ Yes Banking concern's Application Programming Interface (API) to facilitate transactions on their platforms, which is why the crisis has hit them hard.

API banking is a ready of protocols or tools that allows 3rd-party platforms access to a bank's services, and given that Yep Bank is 1 of the major fintech enablers in the land through the Aye Fintech initiatives, dozens of merchants are believed to exist feeling the heat because of the latest developments. However, companies similar Airtel and CRED that use the UPI back-ends of other banks, remain relatively unaffected.

Important Discover from #AirtelPaymentsBank picture.twitter.com/gKeUjY7HYg

— Airtel Payments Banking company (@airtelbank) March 6, 2020

Equally for PhonePe, later originally trying to pass off the prolonged outage equally an "unscheduled maintenance activity", the company finally admitted that it is the outcome of Yes Bank'south moratorium, with the visitor'south founder and CEO, Sameer Nigam, posting an apology on Twitter, saying that the company is trying its best to get its services back upwards sooner rather than later.

Dear @PhonePe_ customers. We sincerely regret the long outage. Our partner bank (Yes Banking company) was placed nether moratorium past RBI. Entire team'due south been working all night to go services back up asap. We promise to be live in a few hours. Cheers for your patience. Stay tuned for updates!

— Sameer.Nigam (@_sameernigam) March half-dozen, 2020

In case yous don't know it already, the Yes Bank lath was superseded by the RBI today following surging NPA (non-performing assets) and direction uncertainty at the bank that left it unable to raise majuscule to address its losses and resultant downgrades by credit rating agencies. The central banking company likewise put a maximum withdrawal limit of Rs. l,000 per month, setting-up the domino effect that is now affecting several sectors of the country'south economy.