BHIM, the government-backed payment app developed by the National Payments Corporation of India (NPCI), is leveling up its venture into the e-commerce sector through the Open Network for Digital Commerce (ONDC).
This development, as reported by the Business Standard, aims to disrupt the dominance of Google Pay and PhonePe, two major players in the market.
Leveraging ONDC’s platform, BHIM intends to broaden its footprint in e-commerce, offering a diverse array of products and services including groceries, fashion, food and beverages, and more.
The initiative, slated for launch through a dedicated division, seeks to bolster BHIM’s user base by providing a seamless shopping experience.
Rahul Handa, former executive vice president for strategic initiatives at ONDC, has been appointed as the chief business officer of BHIM, signaling NPCI’s commitment to fortifying the app’s market position.
This move underscores NPCI’s broader strategy to encourage investment in new third-party payment apps on the Unified Payments Interface (UPI), diversifying the market and reducing reliance on a few dominant platforms.
Despite its initial struggles since its inception in 2016, BHIM aims to revitalize its user experience with the upcoming BHIM 2.0 project, bolstered by strategic partnerships like ONDC.
However, industry experts caution that breaking entrenched consumer habits will require more than just technological integration.
With regulatory constraints impacting Paytm, the third-largest player in the market, a significant portion of its merchant base is reportedly migrating to alternative platforms, including BHIM, presenting a substantial opportunity for expansion.
As the competition heats up in India’s digital payment landscape, BHIM’s foray into e-commerce through ONDC integration sets the stage for a fierce battle for market share against established rivals Google Pay and PhonePe.
However, this move underscores the NPCI’s commitment to fostering competition and innovation in the digital payments ecosystem, ultimately benefiting consumers and merchants alike.
