BHIM shifts beyond payments to build digital financial ecosystem

NPCI BHIM Services Ltd is positioning BHIM as a trusted, homegrown and neutral digital payments platform while expanding beyond conventional UPI transactions into financial services, government benefit delivery and untapped digital ecosystems, according to Lalitha Nataraj, Managing Director and Chief Executive Officer of NPCI BHIM Services Ltd.

Speaking to the media here, Nataraj said BHIM is not seeking to directly challenge dominant private UPI players such as PhonePe and Google Pay, but instead aims to offer consumers a reliable Indian alternative while supporting banks, government agencies and underserved user segments.

“We are not trying to disturb users who are happy with their existing payment apps. Our objective is to provide a sturdy, homegrown alternative that people can choose to use,” she said.

Nataraj emphasised that BHIM has evolved beyond being merely a payments application and is increasingly becoming a technology platform for banks, governments and financial institutions. The platform currently serves around 1.5 crore monthly active users and has demonstrated the scale necessary to support large public-sector initiatives.

She revealed that BHIM is working closely with government departments to facilitate Direct Benefit Transfers (DBT) through the app, while also integrating pension schemes and other citizen-centric services. According to her, these initiatives are expected to bring more first-time digital users into the UPI ecosystem.

Highlighting future growth drivers, Natarajan identified UPI Circle, DBT programmes, digitisation of Self-Help Groups (SHGs), and deeper engagement with Tier-2 and Tier-3 consumers through banks and business correspondents as key areas of focus.