UPI Payments Through Securities Platforms Decline for Fifth Month, Drop 8.6% YoY

Despite strong growth in digital consumption during the festive season, securities-linked UPI (Unified Payments Interface) transactions continued to decline for the fifth consecutive month in October 2025, as per Moneycontrol. Market volatility and cautious investor sentiment weighed on capital market–related activities. 

Capital Market UPI Transactions Continue Downtrend 

UPI payments routed through brokerages and investment platforms registered an 8.6% year-on-year decline in October 2025, falling to 70.24 million transactions. The downtrend, which began in June 2025, persists despite broader strength in usage of UPI for other sectors. This marks a shift from the active retail participation seen in 2023 and early 2024, when demat accounts and trading enthusiasm soared. 

On a sequential basis, however, there was a 14.4% month-on-month improvement in securities-related UPI activity, indicating some rebound although overall numbers still trail the 76.88 million transactions seen in October 2024. 

Robust Festive Digital Transactions in Other Segments 

Unlike capital markets, festive spending spurred sharp increases in UPI transactions elsewhere. Digital gold purchases rose 12.4% compared to September. Liquor stores witnessed UPI transaction values doubling year-over-year, suggesting shifting preferences toward home-based celebrations over outdoor entertainment. 

Everyday consumption also recorded robust movements. Men’s and women’s clothing outlets grew nearly 50%, while groceries gained 38.3%. Passenger rail services rose by 26.1%, beauty shops by 25.6%, and telecom services by 12%, reflecting broader recovery across domestic services. 

Read More: UPI To Arrive in East Asia and Middle East? Here is Why NRIs Can Expect Low-Cost Payments Ahead!! 

Utilities and Nightlife Lag 

In contrast, UPI payments for electricity and water bills dropped by 8.5%, showing muted utility-related consumption. Moreover, nightlife hubs such as bars and lounges increased only 2.4% compared to October 2024, underlining restrained discretionary out-of-home spending by consumers. 

Overall UPI Usage Remains Strong 

Aggregate UPI transaction volumes rose 26.4% year-on-year in October 2025 and 5.3% compared to September, demonstrating continued adoption of digital payments. The divergence between strong overall UPI volumes and weakening stock market–linked transactions reflects a cautious stance by retail investors despite economic momentum in other sectors. 

Conclusion 

Securities-associated UPI payments have now declined consecutively for 5 months, in contrast with broader digital spending momentum. While October brought some recovery in volumes from September, overall activity remains subdued compared to last year’s levels. The market-specific caution among investors continues alongside wider digital consumption growth. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.