What is NPCI’s game plan for the BHIM app?
Mint explains: BHIM, the payment application developed by NPCI, was among the first wave of apps launched (in December 2016) to facilitate digital payments using the Unified Payments Interface (UPI). BHIM allows users to send or receive money from a UPI payment addressee, or send money to non-UPI based accounts by scanning a QR code. For BHIM, the maximum transaction limit is ₹1 lakh per day for a single bank account linked to the app.
Like other UPI apps, one can link BHIM to multiple bank accounts and seamlessly switch between different accounts when making transactions or checking balances. Read more: Dressing Pine Labs for IPO: What ‘fintech bully’ Amrish Rau can learn from Paytm The BHIM app’s market share has dipped in the past few years. In July 2024, BHIM processed 27 million transactions worth ₹8,932 crore while Walmart-owned PhonePe processed as many as 6,983.9 million transactions worth ₹10.28 trillion and Google Pay saw 5,341 million transactions worth ₹7.35 trillion.
The reason why third-party UPI apps are popular compared with the BHIM app is not difficult to see: private apps provide promotional offers like rewards and cash backs. On the other hand, there is a limit to what NPCI, which is incorporated as a ‘not for profit’ company, can offer consumers. The move could boost BHIM’s market share vis-à-vis Google Pay and PhonePe, which dominate the payment landscape with a market share of 85%.
The BHIM app had limited marketing budgets and lacked in consumer awareness. With the creation of a new subsidiary, BHIM will have a dedicated team to focus on its development. Read more: RBI’s digital rupee needn’t languish: Here’s how it can succeed The biggest will be to improve its market share in the retail
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