From Prompt to Payment: How Agentic AI and UPI Are Redefining Digital Transactions in India
Just think about it: you type a prompt, and the payment is complete.
Sounds cool?!
Well, now it is a reality.
Would you like to know how?
Nowadays, it’s the trending story around the globe. NPCI, ChatGPT, and Razorpay have partnered to make payments secure and superfast. They have introduced India’s first conversational pilot project of agentic transactions. You must have come across the news, as every news website, tech site, and newspaper has highlighted this story.
Here, in this blog, we are going to mention this one-of-a-kind disruption in the fintech industry. Agentic AI in Fintech, Razorpay+ AI is among the top searches on web page results and has created a global buzz.
Purchase with One Prompt: Conversational Payments via ChatGPT
Whether it’s a student or a working professional, almost everyone is accessing ChatGPT, just like any other social media app, such as WhatsApp, Instagram, and Facebook. Until now, people have been accustomed to ChatGPT handling tasks such as preparing assignments, brainstorming, and researching information on complex projects to inform strategic planning. But now the picture is wider.
From conventional to conversational, that's how things evolved. Let’s compare the shift when a “human is in every loop” and when “conversational AI agents” are present.
“Remember the rush moment at the time of ordering groceries or food through apps? Your typical process involved navigating the app, purchasing items, adding them to the cart, confirming the delivery address, and initiating payments.
After tapping on the grocery delivery app to pay, the user enters the amount and PIN and is then redirected to the payment app and finally to the grocery app for confirmation.”
The cycle is included in 4 to 6 steps, consuming time. If the payment app fails to work due to poor network conditions or cannot fetch user details or UPI, the payment may be disrupted. This could result in disappointment, as the request is incomplete, and you may not make a purchase.
No more hopping between multiple app screens. The payment process has been streamlined to just 2 or 3 taps for purchase confirmation. Razorpay is enabling the payment functionality, NPCI’s UPI mechanism, and OpenAI assistance capabilities. Axis Bank and Airtel Payment Bank are key partners in making this vision a reality.
UPI also received a framework upgrade, as UPI Circle and UPI Reserve Pay by Cashfree initiate AI-driven payments.
An Advanced System Unveiled by Razorpay, UPI & NPCI
Beyond just a collaboration, the project validates the extraordinary capabilities of the AI agents. Their ability to take ownership of e-commerce platforms, handling all personalized transactions that require human intervention, ensures security and transparency.
From discovering the products to making the purchase successful, and also creating a bridge to connect sellers and other users. The convergence of AI with UPI is a futuristic move shaping up a new world of secure, seamless transactions: Oliver Jay, (MD of International Strategy of OpenAI) and Sohini Rajola (the Executive Director of NPCI) stated this partnership.
BigBasket comes first, joining hands as a merchant to drive this new pilot agentic payment. Now, users simply need to type their daily needs, and the prompt will be paid for and delivered hassle-free.
The Progression of Payment Transactions in Different Forms
From barter to coins to cashless to conversational chatbot models, each evolution inked a different story of payment mechanisms in the real world. Each step moves us towards a better tomorrow, making people’s lives comfortable and easy.
Barter System: Exchanging goods and services
Commodity: Gold, Silver, or other metallic ornaments
Coin System and Paper Money (Physical Currency): Formal Transaction
Checks: Another form of paper-based transfer for a significant amount, secure
ETF Transfer: Around the 1970s, bank-to-bank
Plastic Money: In the 20th century, around 1980, as a cashless electronic payment, smart upgradation
Internet Banking: After the 2000s, multiple activities under an umbrella
CryptoCurrency: Blockchain-integrated decentralized form of exchange
Mobile Payments via UPI & Digital Wallets: In-person transaction: Apple Pay, Google Pay, Phonepe
Prompt Agentic AI: Recent Launch
What is Agentic AI in Fintech?
Agentic AI refers to artificial intelligence models that can make informed decisions to execute complex, multi-step tasks. Likewise, humans have brains to think that these agents have LLMs. Utilizing the capabilities of the generative AI. They continue to learn and evolve from previous actions and user interactions and accomplish goals.
The collaboration is significant because it eliminates the need for consumers to confirm and reset credentials, inquire, or access accounts. Also, payment timing can now be optimized and preplanned autonomously with a single prompt.
What can be Accomplished with AI Agents in the Fintech Industry?
AI agents are capable of performing the following operations, thereby reducing the need for human intervention in the real world.
Real-time fraud and anomaly detection following the compliance
Cancel, decline subscription, or reallocate the savings
Personalized customer assistance
Negotiate & detect bills and recurring payments that need to be paid in the future
Investment Portfolio Management
Automating disruption-free auditing
Are you curious about how the loop executes for agentic payment backed by Razorpay and NPCI via ChatGPT?
Let’s jump right in!
It’s not a sci-fi movie scene or a feature upgrade, but the reality turned out. Shifting the gears of the fintech industry with the latest evolution of AI driven transactions with prompts.
India’s first-of-a-kind, unique, and uniform conversational platform to make the payment experience more intuitive and interactive.
The momentum of AI driven payment operations has risen since Google launched the Agent Payments Protocol. It is a standard, open, and flexible protocol developed on top of LLM to make the purchase autonomous, strengthening the 3 A's: authorization, authentication, and accountability.
It is equipped with cryptographically signed tamper-proof digital contracts and liability protection. All the significant payment drivers, such as Mastercard, Shopify, and PayPal, have shown interest in being key partners and collaborating.
Challenges and Risks: AI-driven Conversation Payments Execution
Of course, like any other adoption of tech trends, this evolution of AI in fintech raises data privacy and security concerns. The fintech organization needs to develop more robust frameworks to integrate the AI agents. Thus, it can protect against cyber threats, malicious attacks, and unauthorized attempts.
In addition, if the government implements firm guidelines, the financial process will be more seamless, secure, and transparent.
Some Findings and Reports Data Reflecting the Value of Agentic AI in Fintech:
More than 90% of business owners acknowledged the positive impact on their financial services endeavors.
By 2024, 25% to 60% of fintech companies will have integrated generative AI into their operations for customer-service management.
JP Morgan has saved up to 48% on manual labor, along with 360,000 hours.
Visa has already transformed its consumer shopping experience with futuristic AI agents integrated into its global network.
Mastercard’s Agent launched Agent Pay in April 2025 to make their consumer experience safer and more seamless.
The future of agentic AI in fintech is going only upwards with advanced rollouts, as all the giant drivers across the globe are adopting Agentic AI in their ecosystem.
Final Words
Billions of users are interacting with ChatGPT and UPI in their day to day life. This collaboration to make the purchase autonomously without the intervention of users sounds so interesting. This pilot project introduces the new use case of agentic AI transaction, enabling tasks to be completed instantly with a single conversational input or instruction.
At Eternalight Infotech, we are a team of intellectual minds shaping AI-driven solutions to expand our clients’ businesses. Also, closely associated with Razorpay to feature and function their services.
If you would like to integrate automation and make a successful release shortly, do consult with us!
Ayushi Shrivastava
(Author)
Senior Content Writer
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