NPCI’s move to spin off BHIM has yielded results, with the app quadrupling its transactions to 100 million within a year
NPCI spun off BHIM as a separate arm in August 2024 to meet the growing demand for digital transactions and also to end PhonePe and Google Pay's dominance of UPI
BHIM has plans to aggressively acquire merchants and has spoken to Razorpay to launch UPI Plug-in, which will help merchants get their own UPI address
This strategic decision is seen as NPCI's attempt to address the concentration risk in India’s Unified Payments Interface (UPI) market.