3 ms·
This meltdown also exposed a bunch of embarrassingly poor engineering / design practices with several fintech startups. PhonePe, a payment app valued at $7 bil
by flak48 7y ago
This meltdown also exposed a bunch of embarrassingly poor engineering / design practices with several fintech startups.
PhonePe, a payment app valued at $7 billion and a subsidiary of Walmart owned Flipkart has been down since this morning since Yes Bank was the only bank they had partnered with since 2016.
A $7 billion dollar company running without failover / redundancy is just crazy.
Google Pay, their competitor on the other hand has atleast 2 banks (HDFC and Axis) it has partnered with.
What's worse is Yes Bank/Phone pe handled around 40% of daily UPI transactions - so millions of folks have been affected by this screw up.
- nwsm 7y agoEmbarrassing but not surprising. Billion dollar startups do not operate like billion dollar companies. That's kind of the point, but the valuation is very misleading when it comes to expectations like this.
- pkaye 7y agoWhat is UPI transactions?
- captn3m0 7y agoIts a mobile banking platform in India, which enable money transfers b/w Bank accounts as well as to various merchants on the platform. PhonePe, the leading UPI-provider app was running it with Yes Bank as the partner, but the bank went down.
- mkagenius 7y agoso NEFT?
- sfifs 7y agoNo there's a separate system for NEFT. UPI is a central bank mandated payment gateway standard. It runs on top of an instant settlement system called IMPS. Implementations tend to be very low cost but there's a cap on transaction size. It's very likely now that Visa and Master Card network will never penetrate in India beyond the wealthy class that travels abroad. This was kind of a pre-emptive strike to keep rent seeking companies at Bay.