India is testing a new way to shop and pay using AI chatbots like ChatGPT, combining artificial intelligence with its powerful UPI payments system.
Quick Summary – TLDR:
- NPCI, Razorpay, and OpenAI are piloting payments through ChatGPT using UPI.
- Users can shop on platforms like BigBasket and Vi directly via AI chatbots.
- NPCI is also planning integrations with Google’s Gemini and Anthropic’s Claude.
- The pilot uses new UPI protocols for secure, user-controlled AI transactions.
What Happened?
India’s National Payments Corporation of India (NPCI), along with Razorpay and OpenAI, has launched a pilot that allows users to make purchases and complete payments directly through ChatGPT. This is part of a broader initiative to blend conversational AI with India’s digital payment ecosystem.
The pilot integrates NPCI’s UPI with ChatGPT to let users shop, pay, and interact with businesses without leaving the chatbot interface. It’s currently being rolled out nationwide, with major partners like Axis Bank, Airtel Payments Bank, BigBasket, and Vi involved.
AI made its first payment in India – seamlessly – no redirects, no hassles.
— Harshil Mathur (@harshilmathur) October 9, 2025
We just piloted Razorpay Agentic Payments with @NPCI_NPCI & @OpenAI at #GFF2025.
You chat → the AI shops → you confirm → it pays.
India didn’t wait for the future. It switched it on. 🚀 pic.twitter.com/GI7rM28NMJ
AI Chatbots Meet UPI in a First-of-its-Kind Integration
In a first for India, AI chatbots are being tested as digital storefronts and payment gateways. The experience is powered by UPI Reserve Pay, a feature that allows users to block funds for merchant payments, and UPI Circle, which enables authentication within the chatbot without switching to other apps.
- Users can interact with ChatGPT to discover products and services.
- Payments are handled through UPI with secure two-factor authentication.
- No need to switch apps or websites to complete the transaction.
Razorpay developed the merchant integration layer, making it easier for businesses to plug into this system. BigBasket and telecom operator Vi are the initial platforms where consumers can test this AI-led shopping experience.
Expanding the AI Ecosystem with Gemini and Claude
OpenAI may have launched the pilot, but other AI giants are not far behind. Google’s Gemini and Anthropic’s Claude are already in the proof-of-concept stage, according to Razorpay CEO Harshil Mathur. These platforms are expected to join the initiative in the coming weeks.
India, with over a billion internet users, is a key growth market for global AI companies. OpenAI has been ramping up its efforts, offering a budget ChatGPT Go plan and now moving into commerce with localized tools. The new pilot is part of a broader trend to integrate agentic commerce protocols into consumer experiences.
Safe, Secure, and Scalable
One of the standout features of this pilot is its focus on user privacy and control. Razorpay confirmed that AI companies like OpenAI will not access payment data. All payments are user-approved and protected by India’s robust UPI authentication system.
Key banking partners like Axis Bank and Airtel Payments Bank provide the banking infrastructure, while Razorpay’s backend handles transactions and merchant integration.
Meanwhile, NPCI continues to launch innovations. At the Global Fintech Fest 2025, it showcased several tools including:
- UPI HELP, an AI-based support tool for mandates and disputes.
- IoT-based UPI payments, enabling payments via cars, TVs, and wearables.
- UPI Reserve Pay, which powers the current chatbot pilot.
- Banking Connect, an interoperable net banking framework.
More Players Jump In
Beyond Razorpay, Cashfree Payments has introduced its own version of agentic payments called Agentic Payments MCP, supporting both card and UPI transactions. It showcased a chatbot demo that lets users buy products like iPhones via conversational agents.
While Cashfree hasn’t named its launch partners yet, it says it’s in talks with major enterprises in e-commerce and lending. In this setup, merchants must build their own chatbot interfaces and integrate them with MCP.
SQ Magazine’s Takeaway
I’m genuinely excited about this pilot. It’s not just a cool tech experiment; it’s a real shift in how we might shop and pay online. Imagine chatting with a bot, asking for groceries, and paying right there without clicking through five different pages. India’s UPI is already a fintech marvel, and combining it with AI could make everyday commerce feel seamless. Sure, it’s early days, but this could change how we think about customer service, online shopping, and digital payments.
