In a historic collaboration that merges India’s digital payments leadership with cutting-edge AI, the National Payments Corporation of India (NPCI), fintech leader Razorpay, and OpenAI have launched a private beta for Agentic Payments—India’s first AI-powered conversational commerce experience inside ChatGPT. Announced on October 9, 2025, at the Global Fintech Fest, this initiative allows users to browse, compare, and purchase products using UPI—all through a simple chat interface.
This pilot represents a major leap in making AI not just an assistant but an actionable, transactional partner in everyday tasks, from grocery shopping to bill payments.
How Agentic Payments Work
Seamless Conversational Commerce
Users can now type commands like:
- “Order ingredients for Thai vegetable curry for four from BigBasket”
- “Recharge my Vi number with ₹499 plan”
The AI agent then:
- Searches for relevant products or services
- Compares options and confirms user preferences
- Processes payment via UPI without leaving ChatGPT
Key Technologies Powering the System
- NPCI’s UPI Infrastructure: Leveraging UPI Circle for payment delegation and UPI Reserve Pay for pre-authorizations
- Razorpay’s Payment Stack: Handling transaction security, compliance, and merchant integration
- OpenAI’s Advanced Models: Enabling natural language understanding and task execution
Security and Control
- Users set spending limits for AI agents
- Real-time tracking of transactions
- Instant revocation of agent permissions
- End-to-end encryption and NPCI-grade security protocols
Launch Partners and Early Use Cases
The private beta includes integrations with leading platforms:
BigBasket
- AI fetches product options based on conversational queries
- Processes UPI payments via banking partners like Axis Bank and Airtel Payments Bank
Vodafone Idea (Vi)
- Supports seamless mobile recharges through chat commands
- Demonstrates utility for frequent, low-value transactions
Why This Partnership Is Transformative
For Consumers
- Frictionless Experience: Complete shopping without switching apps
- Time-Saving: AI handles product search, comparison, and checkout
- Accessibility: Voice or text-based interface simplifies digital commerce
For Businesses
- New Sales Channel: Direct integration with ChatGPT’s massive user base
- Higher Conversion: Reduced steps from discovery to purchase
- Personalization: AI can learn user preferences for tailored recommendations
For India’s Digital Economy
- UPI Goes Global: Showcases India’s payment infrastructure as a world-class AI-enabler
- Boost to E-commerce: Taps into India’s position as ChatGPT’s fastest-growing user base
- Inclusive Growth: Makes digital transactions accessible to non-tech-savvy users
Leadership Insights
Harshil Mathur, CEO of Razorpay
“We’re turning AI assistants into full-fledged shopping agents that complete the entire journey seamlessly—from discovery to payment.”
Oliver Jay, OpenAI
“Combining advanced AI with UPI unlocks effortless, secure commerce. This is just the beginning of how conversational interfaces will redefine digital experiences.”
The Road Ahead
The pilot will evolve in phases:
Short-term (Next 3–6 Months)
- Expand merchant partnerships across e-commerce, food delivery, and travel
- Introduce multilingual support for Hindi and other Indian languages
- Enhance AI’s contextual understanding of complex user requests
Long-term Vision
- Personalized AI Shopping Assistants: Learn user habits for proactive suggestions
- Loyalty Integration: Automatically apply coupons or reward points
- Cross-Platform Expansion: Extend Agentic Payments to other AI platforms and apps
Market Impact and Global Relevance
Positioning India as a Pioneer
- First large-scale implementation of AI-native payments
- Demonstrates UPI’s adaptability to next-gen interfaces
- Strengthens India’s claim as the world’s AI adoption leader
Business Opportunities
- Merchants can tap into ChatGPT’s user base without building custom AI
- Fintechs can develop niche agentic payment solutions
- AI Startups can leverage the model for vertical-specific commerce
Challenges to Address
User Trust
- Ensuring transparency in AI decision-making
- Building confidence in automated financial transactions
Technical Hurdles
- Handling ambiguous or complex user requests
- Scaling infrastructure to support high transaction volumes
Regulatory Compliance
- Adhering to RBI’s guidelines for digital payments and data privacy
- Managing cross-border data flows in global AI systems
Conclusion: Redefining Digital Commerce
The collaboration between NPCI, Razorpay, and OpenAI marks a watershed moment for AI and payments. By enabling conversational commerce powered by UPI, this initiative:
- Bridges the gap between AI assistants and actionable financial transactions
- Sets a global benchmark for integrating national payment systems with AI
- Accelerates India’s vision of a digitally empowered, self-reliant economy
