Cause and Effect

BHIM has strengthened further… The UPI powered Bharat Interface for Money (BHIM) was among the first to app launched to complete digital payments using Universal Payments Interface (UPI). Read the following details which is more interesting.

  1. The number of banks live on BHIM have more than doubled to 65
  2. The volume of transactions has gone up by 212 times
  3. Money transacted under BHIM has gone up 1660 times.

However, the last six months, has in toto showed a reduction in BHIM’s growth when compared to the previous months of the year.

  • The percentage of BHIM transaction to total UPI transaction, declined from 40 per cent in Jan 2017 to 6.27 per cent in December
  • However, the value of transaction had increased from 21 per cent to 23 per cent during the same period.
  • The increase is due to overall increase in digital transactions.
  • The reason attributed to the reduction is due to shifting of business to other service providers like Google Tez, MobiKwik, Paytem or PhonePe. Out of this Paytm has in the middle of last year clinched around 15-20 percent of UPI transactions.

What went wrong with BHIM?

  • Lot of cashback and freebies are offered by others
  • Convenience of operation is another important factor
  • BHIM is being managed by the not for-profit National Payments Corporation of India (NPCI)

However, BHIM has over 65 million users.  As of January 1, 2018 BHIM had recorded around 21.65 million downloads on Android and 1.03 million on Apple iOS.  Thus it is felt that BHIM has served its purpose and once it reaches a position like other apps viz Facebook, Twiter or Linkedin, Whatsapp orother media platforms, with adequate marketing it will be able to do better.  Following is a comparative chart which shows the growth rate of BHIM month wise.

(Source : RBI: NPC)



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