BHIM and UPI are often confused as the same, but they aren’t. Learn the key difference between BHIM and UPI, how each works, and which one you should use for digital payments in India.
Often, people use the terms BHIM and UPI interchangeably in everyday conversations. In most cases, the difference between the two is not given much thought. While both are closely related in the context of digital payments, BHIM and UPI are not the same—they serve different purposes.
If you, too, find yourself confused when BHIM and UPI are treated as identical, this article will help clear all doubts. Here, we explain the difference between BHIM and UPI in simple language, so the confusion surrounding these terms can be cleared once and for all.
What is UPI?
UPI (Unified Payments Interface) is a modern digital payment system designed to make cashless transactions extremely simple for anyone with a bank account and a smartphone. It is a key initiative aimed at promoting a cashless economy in India.
UPI is built on the IMPS (Immediate Payment Service) framework but is far more user-friendly. Unlike traditional bank transfers, UPI does not require users to enter the beneficiary’s name, bank account number, or IFSC code. Instead, transactions can be completed using a Virtual Payment Address (VPA).
Another major advantage of UPI is that it offers a 24x7 instant payment facility, allowing users to transfer money anytime—day or night—without delays.
What is BHIM?
BHIM (Bharat Interface for Money) is a mobile application that enables digital payments using UPI technology. It was launched in 2016, alongside UPI, to help ordinary users easily understand and adopt digital payments.
BHIM was introduced as a proof of concept for UPI and is the official UPI app developed by the National Payments Corporation of India (NPCI). The app allows users to send or request money using a UPI ID, VPA, QR code, or mobile number.
Since BHIM is government-backed and developed by NPCI itself, it is often perceived as a more reliable and secure option for UPI-based transactions.
BHIM vs UPI: Key difference explained
Understanding the difference between UPI and BHIM is quite simple:
UPI is a payment technology and infrastructure
BHIM is a mobile app that uses UPI to facilitate payments
In other words, UPI is the system that powers digital transactions, while BHIM is one of the many apps that allow users to access this system.
For users who want a simple and straightforward UPI experience, BHIM is an excellent choice. However, for those looking for additional features beyond basic payments, there are several other UPI apps available in the market.
The good news is that users can install multiple UPI apps on a single smartphone and use them as needed. NPCI has set a Rs 1 lakh per transaction limit for UPI, and the BHIM app follows the same guidelines.
