NPCI BHIM Services is set to broaden financial inclusion by extending the BHIM app to feature phones, aiming to double its market share and enhance accessibility for users across India.
Key Points
- NPCI BHIM Services aims to double its market share by expanding the BHIM app's reach.
- The BHIM app will soon be available on feature phones to promote financial inclusion.
- Partnerships with banks are planned to distribute financial products through the BHIM platform.
- The app recorded substantial growth in transaction volumes, driven by cashback incentives and user-friendly design.
- BHIM is focusing on safety and simplicity, operating as a public utility without convenience fees.
NPCI BHIM Services Ltd, the wholly-owned subsidiary of NPCI, is working to expand the BHIM app's reach to feature phones as part of a broader strategy to deepen financial inclusion and diversify revenue through financial product distribution, its top executive said, eyeing a doubling of its market share.
In a move to transition from a "reference app" to a major market competitor by embarking on a comprehensive growth strategy focused on financial inclusivity and revenue diversification, said its MD and CEO, Lalitha Nataraj, on Wednesday.
BHIM App's Strategic Partnerships and Growth
Nataraj outlined a roadmap that includes partnering with banks to distribute financial products and embedding BHIM's technology into bank mobile applications through a white-labelling strategy.
The BHIM app was originally launched as a testing ground for Unified Payments Interface features, but the formation of NPCI BHIM Services Ltd about 1.5 years ago marked a significant shift in its identity.
"It was launched initially as a reference app... but in 2024, we thought that it is important that the app has come a long way. It's important to give it its separate identity," Nataraj said, adding that the goal was now to make the app as competitive as any other player in the market.
Transaction Growth and User Engagement
The app recorded 301 per cent growth in total transaction volumes in FY26 compared to FY25, with monthly volumes rising from 5.93 crore in April 2025 to 21.6 crore in March 2026. The momentum carried into FY27, with April 2026 recording 22.49 crore transactions valued at Rs 26,040 crore.
As of May 2026, BHIM has around 1.2 crore monthly active transacting users and 1.6 crore monthly login users. The app is currently available in 15 languages, including Bengali, with work underway to add two to three more, and is optimised for low bandwidth, targeting users in areas with poor network connectivity.
Expanding Access to Feature Phones
The company is also working with partners to extend the app's reach to feature phones over the next few months.
"We are also working with some phone makers to work on how we can make this possible in even feature phones," Nataraj said.
On market share, Nataraj said BHIM is looking to double its current share of nearly one per cent to 1.5-2 per cent in the near term. Cashback incentives introduced in January 2025 have also been a driver, with the app posting 300 per cent annual growth in FY26. Nataraj described the cashbacks as an "icebreaker" to encourage users to explore the app's clutter-free, ad-free interface.
BHIM App Usage in West Bengal
In West Bengal, 71 per cent of transactions on the app in FY26 were peer-to-merchant payments, reflecting growing use for routine purchases. Groceries accounted for 22.5 per cent of merchant transactions, followed by food outlets and restaurants at 18.7 per cent, quick commerce at 6.4 per cent, e-commerce at 3.9 per cent, and fuel stations at 3.4 per cent. The app is also seeing rising adoption of RuPay Credit Card on UPI.
"The strong growth in BHIM Payments App reflects the increasing trust that users across India are placing in a payments platform that is simple, secure and built for the masses. In West Bengal, we are seeing this adoption take shape across a wide range of everyday use cases, from groceries and dining to commuting and online purchases," Nataraj said.
Revenue Model and Future Plans
On revenue, Nataraj said since BHIM operates as a public utility and does not charge convenience fees on UPI transactions, the company is building a distribution-led model in partnership with banks.
"Because it is not a self-sustaining payments business, we are also working with various banks on financial product distribution so that in the long run, we are self-sustaining," she said.
Current collaborations include credit card distribution with several private banks, product development with Canara Bank, and mobile recharge services through like Jio, Vodafone, and Airtel, which provide some remuneration to the platform.
The platform is also banking on new technology and features like UPI Circle feature -- which allows a primary account holder to link family members with spending limits to children and senior citizens.
"We feel that this will bring net new UPI users because my parents would otherwise not use UPI if you leave it to them," she said.
The revamped BHIM app, relaunched in March 2025, focuses on a clutter-free, ad-free interface. Nataraj said the platform would continue to prioritise safety and simplicity over aggressive monetisation.
"We will ensure that we run this as a public utility," she said.
