BHIM Overtakes CRED as UPI Hits Record 21.7Bn in January

NPCI’s BHIM app recorded 17.2 crore UPI transactions worth ₹22,025.9 crore in January, surpassing CRED and FamApp in transaction volume. Meanwhile, total UPI transactions touched a new all-time high of 21.7 billion transactions valued at ₹28.33 lakh crore, underscoring the continued expansion of India’s digital payments ecosystem.

India’s Unified Payments Interface (UPI) ecosystem continues to break records, and January delivered yet another milestone. According to data released by the National Payments Corporation of India (NPCI), total UPI transactions reached 21.7 billion during the month, amounting to ₹28.33 lakh crore — the highest ever recorded in a single month.

Amid this surge, NPCI’s flagship app, BHIM (Bharat Interface for Money), emerged as a notable gainer, overtaking fintech platforms such as CRED and FamApp in terms of transaction volume.

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BHIM’s Performance: Market Share Gains

In January, BHIM recorded 17.2 crore UPI transactions worth ₹22,025.9 crore. The app’s market share rose to 0.8%, up from 0.7% in December — a modest but meaningful improvement in a highly competitive market dominated by private fintech players.

Platform	January Transaction Volume	Market Share Trend
BHIM	17.2 Cr	Increased to 0.8%
CRED	Lower than BHIM	Declined relative position
FamApp	Below BHIM	Trailed in volume

While BHIM’s share remains small compared to market leaders, the growth reflects improved user adoption and possibly greater institutional trust in government-backed payment platforms.

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UPI Ecosystem: Record-Breaking Growth

The broader UPI network continues to demonstrate scale and resilience. January’s data indicates both transaction value and volume growth.

Metric	January 2026	Significance
Total UPI Transactions	21.7 Bn	All-time high
Transaction Value	₹28.33 Lakh Cr	Record monthly value
Growth Trend	Rising	Continued digital adoption

The rise highlights increasing digital penetration across urban and rural India, alongside expanding merchant acceptance and QR-based payments.

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Competitive Landscape: PhonePe Remains Dominant

Despite BHIM’s gains, private players continue to dominate the ecosystem. PhonePe recorded a slight increase in transaction volume, reaching 991.3 crore transactions in January.

Platform	January Volume (Cr)	Position
PhonePe	991.3 Cr	Market leader
Google Pay	Among top players	Strong contender
Paytm	Major participant	Stable presence
BHIM	17.2 Cr	Emerging rebound

The dominance of PhonePe and other large fintech platforms underscores the scale gap between government-backed apps and private-sector payment ecosystems.

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Why BHIM’s Rise Matters

BHIM’s performance carries strategic importance beyond raw numbers. As a government-promoted UPI app, it represents:

• A trust-driven payments alternative • A benchmark for public digital infrastructure • A fallback ecosystem in case of fintech disruptions

The incremental rise in market share may reflect growing consumer confidence, awareness campaigns, or institutional integration.

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Industry Context: India’s Digital Payments Momentum

India’s UPI ecosystem has evolved into one of the world’s largest real-time payment systems. Several structural drivers continue to support growth:

Growth Driver	Impact
Smartphone Penetration	Expanding user base
Merchant QR Adoption	Wider acceptance
Government Support	Policy backing
Interoperability	Seamless transactions
Fintech Innovation	Enhanced user experience

The 21.7 billion monthly transactions reinforce UPI’s position as a backbone of India’s digital economy.

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Strategic Implications for Fintech Players

For fintech platforms, rising transaction volumes mean:

• Increased float income • Cross-selling opportunities • Higher customer engagement • Data-driven credit and lending expansion

However, competition remains intense, with margins compressed due to zero MDR (Merchant Discount Rate) policies and regulatory oversight.

BHIM’s improvement could also signal increasing public sector competitiveness within digital finance.

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Market Outlook

As digital transactions continue to scale, investors and industry stakeholders will monitor:

• Monthly transaction growth trajectory • Market share shifts among platforms • Monetisation strategies amid regulatory constraints • Expansion into credit, insurance, and wealth services

If growth momentum sustains, India’s UPI system could further solidify its position as a global benchmark for digital payment infrastructure.

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FAQs

Q: What is BHIM? BHIM (Bharat Interface for Money) is a UPI-based digital payments app developed by NPCI to facilitate real-time money transfers.

Q: How many UPI transactions were recorded in January 2026? A total of 21.7 billion transactions worth ₹28.33 lakh crore were recorded — an all-time high.

Q: Did BHIM overtake PhonePe? No. BHIM surpassed CRED and FamApp in transaction volume but remains far behind market leaders like PhonePe.

Q: Why is UPI growth important? UPI growth reflects digital adoption, financial inclusion, and expansion of India’s cashless economy.

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Final Take

BHIM’s rise in January rankings, though incremental, signals strengthening adoption within India’s rapidly expanding UPI ecosystem. With record-breaking monthly transaction volumes, India’s digital payments infrastructure continues to set global standards — even as competition intensifies among fintech giants.

⚠️ DISCLAIMER: This article is for informational purposes only.