Government-backed UPI app BHIM has staged a notable comeback over the past year, with strong growth in transactions, value, and rankings. The app has moved up significantly in the UPI ecosystem, representing improved user adoption and engagement, even as the market continues to be dominated by larger private players such as PhonePe and Google Pay.
According to data from the National Payments Corporation of India, BHIM’s customer-initiated transaction volume surged 4.7X to 175.93 million in February 2026 from 36.88 million in February 2025. In value terms, transactions processed via the app stood at Rs 21,264 crore in February 2026, compared to Rs 8,475 crore in February 2025.
The jump in volumes has also led to a sharp improvement in rankings. BHIM climbed to the 6th spot by February 2026 from 15th position in February 2025 among UPI apps, which makes it one of the fastest recoveries in the ecosystem during the period. For context, BHIM’s ranking stood at 6th in 2024.
The turnaround is also visible in user adoption. BHIM has crossed 100 million downloads on the Google Play Store. The increase in downloads aligns with the spike in transaction activity, which showed improved user engagement rather than just passive installs.
Despite this growth, the UPI market remains heavily concentrated, with PhonePe and Google Pay continuing to dominate customer-initiated transactions, followed by Paytm.
BHIM’s growth over the past year seems to be steered by a mix of better branding, discounts and broader ecosystem support. The onboarding of MS Dhoni as brand ambassador is likely to improve recall, especially in smaller cities. At the same time, the government’s push for digital payments and rising concerns around fraud may be encouraging users to shift towards a trusted, government-backed platform.
For BHIM, the real test lies in retention and depth of engagement. While initial momentum is visible, long-term progress will depend on product experience, and of course discount. In a market guided by habit and convenience, converting this interest into sustained usage will determine whether it can strengthen its position over time.