BHIM Payments App Sees Over Threefold Surge in Transactions as Digital Payments Gain Momentum
Platform processes ₹26,952 crore in May 2026; Telangana emerges as a fast-growing market driven by groceries, food outlets and quick commerce
"We are encouraged to see digital payments becoming an integral part of everyday life in Telangana," said Lalitha Nataraj, Managing Director and CEO of NPCI BHIM Services Limited.
Hyderabad: India’s homegrown digital payments platform, the BHIM Payments App, has recorded more than threefold growth in transaction volumes over the past year, underscoring the rapid expansion of Unified Payments Interface (UPI)-based payments across the country.
Developed by NPCI BHIM Services Limited (NBSL), the app witnessed monthly transaction volumes rise from 79.64 million in June 2025 to 244 million in May 2026, while the value of transactions processed during May alone reached ₹26,952 crore, according to data released by the company.
The growth reflects the continuing shift of Indian consumers toward digital payments for routine, everyday purchases, extending beyond urban centres into smaller towns and semi-urban markets.
Telangana Mirrors National Growth
Telangana has emerged as one of the notable contributors to the platform’s growth, recording a threefold increase in transaction volumes during the same period.
Data from May 2026 shows that groceries accounted for 23.9% of merchant transactions in the state, followed by food outlets (18.1%) and quick commerce (11.6%). Other frequently used payment categories included dairy and bakeries, fuel stations, e-commerce and government services, indicating that digital payments are increasingly becoming the preferred mode for daily spending.
The company also reported growing adoption of newer payment options such as UPI Lite and RuPay Credit Card on UPI, suggesting increasing consumer preference for faster and more flexible payment experiences.
“We are encouraged to see digital payments becoming an integral part of everyday life in Telangana,” said Lalitha Nataraj, Managing Director and CEO of NPCI BHIM Services Limited. She noted that the strongest growth is coming from routine consumer spending categories such as groceries, food outlets and quick commerce, reflecting deeper digital adoption among users.
Focus on Simplicity and Financial Inclusion
NBSL said the BHIM Payments App has been designed with financial inclusion as a key objective. The application supports more than 15 regional languages, including Telugu, and has been optimised to function efficiently even in low-connectivity environments, helping extend digital payment services to rural and semi-urban users.
Reward programmes and merchant partnerships have also contributed to sustained user engagement on the platform.
New Features Expand User Convenience
To strengthen its position in India’s rapidly evolving digital payments ecosystem, BHIM has introduced several new features aimed at improving convenience and financial management.
Among them is UPI Circle, which allows users to authorise trusted family members or dependents to make payments from their account within predefined limits. Other additions include Split Expenses, Family Mode, Spends Analytics, UPI Lite Auto Top-Up, RuPay Credit Card integration, Forex booking, Prepaid Recharge, and a rewards programme designed to encourage regular digital transactions.
These features position the platform beyond a conventional UPI payment application by incorporating family finance management, spending insights and value-added financial services.
Digital Payments Continue to Deepen Across India
The latest growth figures reinforce India’s continuing leadership in digital public infrastructure, with UPI becoming the preferred payment mechanism across retail segments. As digital payments increasingly penetrate grocery stores, neighbourhood merchants, quick commerce platforms and government services, platforms such as BHIM are expected to play an important role in advancing financial inclusion while supporting the country’s digital economy ambitions.
NPCI BHIM Services Limited, incorporated in 2024 as a wholly owned subsidiary of the National Payments Corporation of India (NPCI), is responsible for operating and expanding the BHIM Payments App as part of India’s digital payments ecosystem.
