ChatGPT Integrates Indias UPI for Seamless AI Transactions

In a significant move for the fintech world, AI-driven payments are now being tested on ChatGPT through a major collaboration. India’s central payment authority, the National Payments Corporation of India (NPCI), and leading fintech company Razorpay have joined forces with OpenAI to pioneer this new service. Currently in a pilot phase, this initiative allows users to make payments directly within the ChatGPT interface using India’s widely adopted Unified Payments Interface (UPI).

What Are Agentic AI Payments?

This new technology represents a leap forward for AI assistants. Known as agentic AI payments, the system empowers AI to handle transactions autonomously on behalf of the user, transforming AI platforms from simple information tools into comprehensive shopping agents. Users can complete purchases without ever needing to leave the chat window, creating a truly seamless experience. Harshil Mathur, CEO of Razorpay, highlighted this evolution, stating, “With agentic payments, we are transforming AI assistants from simple discovery tools into full-fledged shopping agents.”

The Pilot Program and Key Partners

The initial pilot program is designed to explore the potential applications of this technology across various sectors. According to a joint statement, the goal is to see how UPI can equip AI agents with payment capabilities to “autonomously complete transactions on behalf of users in a safe, secure, and user-controlled manner.”

Several key players are supporting this pilot. The banking partners include Axis Bank and Airtel Payments Bank, while Tata-owned e-commerce giant BigBasket is one of the first platforms to integrate this AI-powered shopping feature. Oliver Jay, managing director of international strategy at OpenAI, expressed his enthusiasm for the partnership, saying, “We’re excited to work with NPCI and explore how we can combine advanced AI with UPI, one of the world’s most trusted real-time payment networks.”

The Competitive Landscape of AI Commerce

OpenAI is not alone in the race to integrate payments into AI. Earlier this year, Google launched its Agent Payments Protocol (AP2), an open framework developed with partners like American Express, Mastercard, Paypal, and Salesforce to facilitate secure agent-led transactions. Similarly, AI search engine Perplexity partnered with Paypal to allow users to make direct purchases for products, travel, and tickets within its chat interface using PayPal or Venmo.

OpenAI's Broader Push into E-commerce

This UPI integration is part of OpenAI's broader strategy to compete with established e-commerce and search platforms like Amazon and Google. The company recently launched a shopping system that enables ChatGPT users to buy products from U.S.-based Etsy sellers directly through conversation. This “Instant Checkout” feature is set to expand soon to include over a million Shopify merchants, further solidifying ChatGPT's role as a powerful tool for online commerce.