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March 6, 2020Blog Posts

Indian Bank Meltdown Takes Out Walmart’s Leading Payments App

Bloomberg

Walmart Inc.’s Indian payments service went down late Thursday after India’s central bank seized control of Yes Bank and froze transactions with the troubled domestic lender.

PhonePe Pvt Ltd, India’s leading digital payments provider with more than 175 million users, is the largest of a plethora of local startups that relied on the bank to process transactions. Leading business-to-business software platform Udaan asked buyers and sellers on its platform to refrain from using the Udaan Pay QR code, powered by Yes Bank.

Others that depended on Yes Bank included Microsoft’s Kaizala mobile chat app and online travel providers MakeMyTrip and Cleartrip, according to the website of the country’s official online payments infrastructure operator. All succumbed Thursday evening, when the Reserve Bank of India took control of Yes Bank to stem a threat to the nation’s banking system.

“We sincerely regret the long outage,” Sameer Nigam, PhonePe’s founder and chief executive officer, said on Twitter. “Our partner bank Yes Bank was placed under moratorium by RBI. Entire team’s been working all night to get services back up as soon as possible.”

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