Why BHIM is losing to other apps in UPI race

Digital transactions got a leg up post demonetization in November 2016 and so did the Unified Payments Interface (UPI), which was launched a few months before the note ban. A little later, the National Payments Corp. of India (NPCI) launched its own UPI app called BHIM, which took off in a big way. But the good run doesn’t seem to have lasted too long. With other companies, including Google Pay, PhonePe, Paytm and Mobikwik, also launching their UPI apps, BHIM’s market share has dipped in the past few years. UPI, on the other hand, has continued to grow at a rapid pace, surpassing even mobile wallets, which were more popular than UPI earlier, in terms of transaction volume and transaction value (see graphic).