BHIM Payments App Eyes Bigger UPI Market Share After Strong Growth in 2025

BHIM Payments App recorded sharp growth in 2025, with monthly transactions rising more than fourfold during the year. The app processed 165.1 million transactions in December 2025, compared with just 38.97 million in January. 

This translated into an average month-on-month growth of around 14%. In value terms, transactions reached ₹20,854 crore in December. This steady rise highlighted the growing adoption of the app among UPI users across India.

Rising Usage Across Key Regions

The growth was particularly strong in northern states such as Delhi, Punjab, Haryana, Uttar Pradesh and Rajasthan. Increased usage in these regions pointed to higher trust in the app’s reliability, security and overall user experience. Despite being the seventh-largest UPI app by transaction volume in 2025, BHIM managed to carve out a niche by attracting users who prefer a government-backed, bank-led digital payments platform.

Focus On IPO Payments And High-Value Transactions

BHIM also played a meaningful role in IPO-related payments. Around 9–10% of UPI payments for IPO applications were routed through the app. The platform continued to see a relatively high average transaction value, indicating its growing relevance for larger and more structured digital payments rather than only small daily transactions.

Collaboration With Public Sector Banks

To expand its presence further, BHIM is focusing on collaboration rather than competition. NPCI BHIM Services Ltd is working closely with public sector banks to provide UPI payments technology. A recent partnership with Canara Bank enabled UPI-based digital payments on the bank’s Canara ai1Pe app for both customers and non-customers. Similar collaborations with other public sector banks are under discussion, with announcements expected in the first quarter of FY27.

New Features To Improve User Experience

BHIM has also introduced new features to enhance convenience and engagement. UPI Circle Full Delegation allows users to authorise trusted contacts to make payments within a monthly limit of up to ₹15,000 for a fixed period. Other additions include Split Expenses, which helps users divide bills easily, and Family Mode, which allows families to manage shared payments and track expenses together.

Read more: Budget 2026: Centre Invites Public Suggestions Through MyGov Platform.

Conclusion

With strong transaction growth, deeper bank partnerships and user-friendly features, BHIM Payments App is steadily strengthening its position in the UPI ecosystem. Its focus on collaboration and simplicity could help it gain a larger share in India’s fast-growing digital payments market.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.