India is once again leading in digital finance innovation. The National Payments Corporation of India (NPCI), in collaboration with Razorpay and OpenAI, has launched a pilot program allowing users to make AI-powered payments directly through ChatGPT using the Unified Payments Interface (UPI). This initiative marks a major step toward agentic AI commerce, where artificial intelligence can autonomously handle transactions securely and efficiently.
Transforming AI into Shopping Agents
The concept of agentic AI refers to AI models capable of performing complex tasks with minimal human intervention. By embedding UPI credentials within ChatGPT, users can authorize transactions, enabling AI to act as a transactional assistant. Razorpay CEO Harshil Mathur emphasizes that this technology transforms AI assistants from simple discovery tools into full-fledged shopping agents capable of completing purchases autonomously.
Secure Transactions with ‘Reserve Pay’
The pilot leverages UPI’s “reserve pay” feature, allowing users to pre-authorize funds for selected merchants. This provides an extra layer of security for AI-driven payments, ensuring users maintain control while the system executes transactions. Financial partners such as Axis Bank and Airtel Payments Bank will manage backend processing, while Bigbasket is the first retail partner to accept AI-powered UPI payments.
India’s Advantage in AI Payments
Unlike global competitors, India’s UPI infrastructure allows seamless integration of AI-driven commerce with a secure, scalable domestic network. With NPCI’s open and interoperable framework, fintech companies can innovate rapidly. Local rivals like Cashfree are already rolling out similar agentic AI payment systems, suggesting a fast-growing market for AI-enabled commerce in India.
The Road to an AI-Powered Super-App
This pilot is part of OpenAI’s broader vision of evolving ChatGPT into an “everything app” — a platform capable of not just conversation but also shopping, bill payments, and other financial tasks. If successful, AI will no longer just recommend products; it will actively participate in financial ecosystems, merging generative AI capabilities with real-time digital payments.
Conclusion
India’s integration of UPI with ChatGPT represents a transformative moment for AI and fintech. By combining secure digital payments with intelligent AI assistants, the pilot program has the potential to redefine everyday transactions, making AI a proactive and trusted participant in commerce, retail, and financial services.
