Bharat Interface for Money (BHIM) payment app - Careerswin

Bharat Interface for Money completes 6 years - Careerswin

On 30 December 2016, Prime Minister of India Narendra Modi launched the Bharat Interface for Money (BHIM) payment app. Six years later, BHIM is still going strong, with an ever-growing user base and high volumes of transactions being processed through the app. In this article, we take a look at what BHIM is, how it works, and its impact on the Indian payments landscape.

What is Bharat Interface for Money (BHIM)?

BHIM is a mobile payment app developed by the National Payments Corporation of India (NPCI). It is based on the Unified Payments Interface (UPI), which allows electronic payments directly through the bank. The app is available for use on all mobile devices, including smartphones and feature phones, and can be used with or without an internet connection.

One of the key features of BHIM is its use of biometric authentication. Users can link their bank accounts with the app and make payments using only their thumb impression. This makes the payment process quick and easy, and also helps ensure the security of transactions.

How does BHIM work?

To use BHIM, users first need to download the app and link it with their bank account. This can be done by entering their bank details and authenticating the connection using their thumb impression. Once the app is set up, users can make payments to other BHIM users or merchants who accept BHIM payments.

To make a payment, the user just needs to enter the payee's UPI ID or scan their QR code. They can then enter the amount they wish to pay and confirm the transaction using their thumb impression. The payment is then transferred to the recipient's account immediately.

BHIM also has a number of additional features, including the ability to check account balances, view transaction history, and request and send money to other users.

BHIM's impact on the Indian payments landscape.

BHIM has had a significant impact on the Indian payments landscape since its launch. One of the main goals of the app was to encourage cashless transactions and reduce dependence on physical currency. In this regard, BHIM has been successful, with the number of transactions through the app increasing steadily.

According to NPCI data, the value of UPI transactions processed through BHIM in November 2021 stood at Rs 11.9 lakh crore (about $162 billion) with a volume of 7.3 billion transactions. This represents a significant increase over the previous year, and is a testimony to the growing popularity of BHIM among users.

Apart from increasing the usage of cashless transactions, BHIM has also helped in making the payment process more efficient. By allowing users to make payments directly through their bank accounts, BHIM has reduced the need for intermediaries, such as credit card companies, in the payment process. 

This has helped in reducing transaction fees and making the payment process more cost-effective for both users and merchants.

In the six years since its launch, BHIM has become an integral part of the Indian payments landscape. Its use of biometric authentication and its ability to facilitate direct electronic payments through bank accounts have made it an attractive option for both users and merchants. As the app continues to grow in popularity, it is likely to have an even greater impact on the way payments are made in India.