BHIM app to join govt-backed ONDC to challenge Google Pay, PhonePe dominance: Report

BHIM, the government-backed payments app, is planning to join the Open Network for Digital Commerce (ONDC) to challenge the dominance of Google Pay and PhonePe in India's digital payments sector, according to the Economic Times. 

BHIM, developed by the National Payments Corporation of India (NPCI), will expand into the e-commerce sector through a separate division, the report said.

Aiming to increase BHIM's adoption

The report said the move aims to increase BHIM's adoption by allowing its users to shop for various products on ONDC, including food and beverages, groceries, fashion, and apparel. The integration is expected to enhance BHIM's competitiveness against its rivals. 

Notably, NPCI also appointed ONDC’s former executive vice president for strategic initiatives, Rahul Handa, as the chief business officer (CBO) of BHIM in March.

BHIM's co-founders, Devansh Jain and Ackshay Jain, emphasized the platform's unique community-focused approach, saying, "Culture Circle is not just another online sneaker and streetwear store. We're creating a community where individuals passionate about premium brands can connect, discover, and buy exclusive pieces seamlessly at the guaranteed best prices in India without worrying about authenticity."

BHIM's market presence 

Despite launching in 2016, BHIM has struggled to gain significant market share due to limited marketing budgets and low consumer awareness.

NPCI's new BHIM 2.0 project aims to revitalize the app’s user journey and expand its reach through partnerships like ONDC. The app has experienced a surge in downloads following regulatory curbs on Paytm, with BHIM seeing a 50% increase in downloads during a recent four-day period.