BHIM's UPI Transactions Jump 10x In Two Years As NPCI Eyes Financial Services Push

The National Payments Corporation of India's (NPCI) BHIM app has staged a strong comeback, with its monthly UPI transaction volume rising nearly tenfold over the past two years as the government-backed platform prepares to expand into loans, credit cards and other financial services.

BHIM processed 224 million UPI transactions in June 2026, compared with 23 million in June 2024, according to NPCI data. The value of transactions climbed to ₹25,613 crore from ₹7,966 crore during the period.

The sharp rise marks a turnaround for one of India's earliest UPI applications, which had steadily lost market share after PhonePe and Google Pay emerged as the dominant players in the country's digital payments ecosystem.

Despite the rebound, BHIM accounted for only around 1% of total UPI transaction volume in June, while PhonePe and Google Pay together controlled nearly 79% of the market.

Restructuring Sparks Revival

BHIM's resurgence began after NPCI carved the platform into a separate subsidiary in 2024, giving it an independent mandate and a commercial business structure.

NPCI infused ₹300 crore into NPCI BHIM Services following the restructuring. The company subsequently rolled out cashback programmes to acquire users while revamping the app's interface and payment experience.

BHIM has also positioned itself as "India's own payment app", differentiating itself from PhonePe and Google Pay, both of which are owned by US-based companies.

The turnaround follows years of declining market share. BHIM accounted for around 40% of UPI transactions during the first half of 2017, but its share fell to 25% by October that year, declined to about 6% by mid-2018 and dropped further to around 4% by the end of 2018.

Beyond Payments

The next phase of BHIM's strategy will focus on building a broader financial services platform around its expanding payments base.

The company told Moneycontrol that it plans to enter loans and credit card products while working with banks to integrate its plug-in into their UPI applications. Canara Bank has already become one of the first lenders to activate the feature.

"We are expanding into large, underserved payment use cases such as government flows, DBT and self-help groups where digital payments are still underpenetrated," Lalitha Nataraj, Managing Director and Chief Executive Officer of BHIM, told Moneycontrol.

The expansion comes as the company looks to build a sustainable business. While parent NPCI operates as a not-for-profit entity, NPCI BHIM Services has a commercial mandate.

The subsidiary reported ₹4 crore in revenue and a ₹68 crore loss in FY25. Its FY26 financial results have not yet been disclosed.

WhatsApp Pay, Navi Also Gain Market Share

BHIM is not the only challenger gaining traction in India's UPI ecosystem. WhatsApp Pay processed 150 million transactions in June 2026, more than four times the 37 million recorded two years earlier. Its market share rose to around 0.7% from 0.27%, helping it overtake CRED to become the eighth-largest UPI app by transaction volume.

Meanwhile, Sachin Bansal-backed Navi has strengthened its position as the fourth-largest UPI app, while Flipkart Group's super.money has also expanded rapidly.

While BHIM's sharp recovery suggests the platform has regained momentum after years of decline, its next challenge will be converting that growth into regular customer usage, sustainable revenue and a stronger competitive position against India's dominant UPI players.