‘Form Is Temporary, Class Is Permanent’: PhonePe, Paytm Engage In Twitter Spat After Yes Bank Crisis

Digital payment application Paytm took a dig on its rival PhonePe after it faced outage following partner bank Yes Bank moratorium. The bank was placed under a moratorium on Thursday evening, with the RBI capping deposit withdrawals at Rs 50,000 per account for a month and superseding its board. PhonePe, one of the country's largest digital payment platforms, is dependent upon Yes Bank to process its transactions.

The Twitter spar began after PhonePe founder and CEO Sameer Nigam said there has been an outage of service on its payment application due to restrictions on its banking partner Yes Bank and the service will be live soon.

Following this Paytm Payments Bank tweeted, "Inviting you to @PaytmBank #UPI platform. It already has huge adoption and can seamlessly scale manifold to handle your business. Let's get you back up, fast! (sic)."

Giving it back, PhonePe said that Paytm Payments Bank platform is not seamlessly scalable otherwise the company would have themselves approached it.

"Dear @PaytmBank Inviting you to consider that if your #UPI platform was so 'seamlessly scalable', we'd have called you ourselves. No point getting back up faster, if we have to desert our long term partners when they're down. Form is temporary, class is permanent," PhonePe's official twitter handle said.

Dear @PhonePe_ ,

Inviting you to @PaytmBank #UPI platform. It already has huge adoption and can seamlessly scale manifold to handle your business.

Let’s get you back up, fast!

— Paytm Payments Bank (@PaytmBank) March 6, 2020

However, PhonePe this morning claimed to have restored its UPI payment services and digital wallet for users.