India's homegrown UPI app, BHIM, is witnessing a remarkable revival. After losing significant market share to rivals like PhonePe and Google Pay over the past few years, the app has recorded a nearly 10-fold increase in monthly UPI transactions over the last two years.

The growth comes as the National Payments Corporation of India (NPCI) prepares to transform BHIM from a payments app into a broader financial services platform.

BHIM's UPI Transactions Surge

According to NPCI data:

• June 2024: 23 million UPI transactions

• June 2026: 224 million UPI transactions

The total value of transactions also grew significantly:

• June 2024: ₹7,966 crore

• June 2026: ₹25,613 crore

While the numbers reflect strong growth, BHIM still accounts for only about 1% of India's total UPI transactions. In comparison, PhonePe and Google Pay together control nearly 79% of the market, highlighting the challenge that still lies ahead.

What Triggered the Comeback?

BHIM's turnaround began in 2024 when NPCI separated the app into an independent subsidiary, NPCI BHIM Services Limited, giving it greater operational flexibility and a commercial business model.

NPCI also invested ₹300 crore into the new entity.

Following the restructuring, BHIM introduced several changes, including:

• Higher cashback rewards

• A redesigned user interface

• Improved payment experience

• Branding focused on being "India's own payments app"

These initiatives have helped attract new users and revive interest in the platform.

From Payments to Financial Services

BHIM is now preparing to expand beyond UPI payments.

According to company plans, the platform intends to introduce services such as:

• Digital gold

• Credit products

• Credit cards

• Expanded banking partnerships

The company is also working with banks to integrate BHIM's technology into their own UPI applications. Canara Bank is among the first lenders to adopt this integration.

BHIM's leadership has also indicated that the company wants to strengthen digital payments in underserved segments, including:

• Government payments

• Direct Benefit Transfer (DBT)

• Self-help groups

• Rural and underserved communities

Profitability Remains a Challenge

Despite the rapid growth in transactions, BHIM is still working toward building a sustainable business.

For the financial year 2024–25:

• Revenue: ₹4 crore

• Net loss: ₹68 crore

Its financial results for FY 2025–26 have not yet been made public.

Unlike NPCI, which operates as a not-for-profit organization, BHIM's subsidiary has been established with a commercial business model focused on long-term growth.

Competition in the UPI Market Is Heating Up

BHIM is not the only smaller UPI platform gaining momentum.

WhatsApp Pay has also expanded rapidly:

• Transactions increased from 37 million in June 2024 to 150 million in June 2026.

• Its market share rose from 0.27% to nearly 0.7%, helping it overtake CRED to become the eighth-largest UPI app by transaction volume.

Meanwhile, competitors such as Navi and super.money continue to strengthen their presence in India's highly competitive UPI ecosystem.

The Bottom Line

BHIM's recent growth signals a strong revival after years of declining market share. Backed by NPCI, the app is no longer focusing only on digital payments but is evolving into a broader financial services platform with offerings such as digital gold, credit, and banking solutions. The next challenge for BHIM will be converting its growing user base into long-term engagement while competing against well-established UPI leaders.