BHIM app also saw a negative growth of 17.9% during June-July period this year.

At present the
Unified Payments Interface (UPI) based payment app holds about 5.37% market share.

According to a recent report by payment gateway Razorpay, among the top performing payment
gateways include Google Pay, which at present enjoys about 59.23% market chunk of total UPI
transactions. PhonePe remains a distant second with 24.70% share of UPI transactions followed
by Paytm with 6.35% market share of UPI based transactions.

Among these apps, GooglePay saw a 10.5% growth in June this year, however, in July it fell
0.9%. PhonePe also witnessed a negative growth of 3.9% during the same period with the worst
hit being Paytm which saw a negative growth of 26.9%.

Meanwhile, looking at the grim scenario faced by BHIM app the NPCI has already rationalised
the merchant discount rates for BHIM UPI transactions from September 1.

The retail payments watchdog has also capped Merchant Discount Rates (MDR) for large ticket
transactions at maximum ₹100 and made zero at offline merchants for transaction up to ₹100.
Currently it is available in 16 languages, i.e., Hindi, English, Tamil, Telugu, Malayalam,
Bengali, Odia, Kannada, Punjabi, Assamese, Urdu, Marathi, Gujarati, Haryanvi, Bhojpuri and
Konkani.

While PhonePe and GooglePay have emerged as the top two players in the Unified Payment
Interface or UPI, rest of the players including government-promoted BHIM are facing the
heat. According to data released by NPCI, the market share of BHIM in overall UPI transactions
has fallen to a new low of 0.88% in November.
UPI had recorded 2210.23 million or 2.2 billion transactions in the last month of which BHIM
contributed merely 19.49 million transactions.
The value of transactions processed by the government-promoted entity has fallen sharply as
well. The four-year-old platform processed only Rs 6668.02 crore in value through its funnel out
of total Rs 390,999.15 crore in November.
In comparison, BHIM’s contribution to the overall UPI transaction was recorded at 0.96% in
October and 0.97% in the previous month. BHIM has been facing a rough ride for the past two
years. In November last year, BHIM had recorded its lowest market share at 1.29% in the overall
transactions via UPI.
To reinvent itself and drive frequent use cases, BHIM started offering discounts on third-party
apps such as Oyo, Railyatri, Zoomcar, ShopClues, Faasos (now EatSure) and Box8 in November
last year. However, such partnerships didn’t work out and this was evident from its performance
since the beginning of this year.
While the current market share of top UPI-enabled apps including PhonePe and Google Pay
could not be ascertained, PhonePe dominated with more than 40% market share and 835 million
transactions in October followed by Google Pay’s 39.5% or 819 million transactions. Paytm and
Amazon have close to 12% and 6% market share, respectively.
Meanwhile, NPCI has been trying to control the duopoly and keep a tab on the accumulating UPI
volume to certain entities. The umbrella organization for retail payments in India had recently
announced a cap of 30% on the total volume of transactions processed in UPI for all third-party
app providers or TPAPs.
 According to NPCI, the move will be applicable from January 1, 2021, and it will help address
the risks and protect the UPI ecosystem as it further scales up.

Important
 BHIM’s market share has fallen in last two years even as UPI grows strong
 When using an app or a platform, consumers also look for other offerings such as
cashbacks and user-friendliness
As the government aims big to promote and make digital transactions easier with BHIM (Bharat
Interface for Money) app, a new survey on Tuesday claimed that only 35.7 percent people in
rural India are aware of BHIM that has over 10 million user base in the country.
Launched in December last year, BHIM is a digital payments solution app based on the Unified
Payments Interface (UPI) from the National Payments Corporation of India (NPCI).
According to Brickworks Media, a sister concern of research and data analytics company
Chrome DM, "only 16.2 percent of the respondents have downloaded the app which reflects the
low user base in rural India and nine percent of the respondents who have BHIM app are
completely aware of usage process".
The survey involved 5,478 rural respondents from across the country.
"Only 9.2 percent of the rural respondents have used BHIM app for any purpose till date and
approximately 15 percent of the rural respondents have found easy using the BHIM app," the
findings showed.
Approximately 20 percent of the respondents feel that BHIM app is a safe and secured way for
money transactions.
Prime Minister Narendra Modi said last week that the BHIM-Aadhaar digital payments platform
has the potential to revolutionise the Indian economy.
 Launching the new combined platform in Nagpur, he said that by enabling each Indian to pay
digitally using their biometric data on a merchant's biometric-enabled device, the BHIM-
Aadhaar will be like a smartphone with a biometric reader and boost digital payments in a
manner unprecedented anywhere in the world.
"With over 10 million user base, it is clear that major dominance for usage of BHIM app comes
from urban India. Therefore, the government needs to work more on branding and awareness in
rural India to increase its penetration," the survey stressed.
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).

“Incentives are good for platform adoption and faster adoption,” said Paytm
With BHIM, one can directly send, receive, and request for money to and from their bank
accounts. There is no need to fill up any wallet to proceed with a transaction. For those using
*99#, Rs. 0.50 is charged per transaction. It is the bank's discretion to levy charges on the
customer for using BHIM; from NPCI, there are no charges levied.
 The limit for USSD has currently been set at Rs. 5,000 per day. 
https://gadgets.ndtv.com/apps/news/awareness-of-bhim-app-is-less-than-40-percent-in-rural-
india-survey-1683364

Hypothesis
The researcher obtained the test statistic using sample observation selected by the researcher.
The result reveals that the variables used for analysis has positive impact on the effectiveness of
cashless transaction using BHIM application.
Important
 BHIM’s market share has fallen in last two years even as UPI grows strong
 When using an app or a platform, consumers also look for other offerings such as cash
backs and user-friendliness
BHIM app also saw a negative growth of 17.9% during June-July period this year.
According to a recent report by payment gateway Razorpay, among the top performing payment
gateways include Google Pay, which at present enjoys about 59.23% market chunk of total UPI
transactions. PhonePe remains a distant second with 24.70% share of UPI transactions followed
by Paytm with 6.35% market share of UPI based transactions.
Layered cross tab – age, duration of app, gender
Anova – dep – number of bank accounts, factor- monthly income
Anova – depdn – number of bank account, factor –frequency of making cashless transaction.
Chi-square test - Education Qualification and Frequency of Making Cashless Transaction
through Bharat Interface for Money (Bhim) Application
Independent sample t-test- opinion in quality of BHIM by single and multiple bank account
holders. Monthly Income of the respondents and the opinion in quality of BHIM.