AI companies and payment firms are building systems that allow AI agents to interact with payment infrastructure. In India, NPCI is developing a framework to identify and authorise agents making transactions through UPI, bringing the prospect of software making payments on a user’s behalf closer to reality.
NPCI is working on a registry to verify and monitor AI agents that make payments through UPI, according to reports. The registry is expected to be part of the organisation’s planned Unified Agentic Protocol. It could initially cover UPI and later extend to cards, bill payments and other payment methods.
NPCI chairman Ajay Kumar Choudhary said at the Global Fintech Fest in Mumbai on Thursday that the organisation is examining protocols to identify and authorise digital AI agents within the UPI ecosystem.
The proposed system is expected to begin with low-value, frequent payments, such as grocery purchases. Under the model being discussed, users could set rules and limits for an AI agent, allowing it to make qualifying payments without seeking approval for every transaction. More complex uses could eventually include buying a product when its price falls below a specified level.
The move comes as global payment companies are also developing systems for AI-led commerce. Visa, Mastercard and Ant International have said that they had begun work on a common ‘Know-Your-Agent’ framework to help payment networks, digital wallets, AI platforms and marketplaces identify and verify AI agents across different systems.
Indian payment companies are already connecting their infrastructure with AI tools. Razorpay said in April that developers using OpenAI’s Codex could connect its payment infrastructure through its Model Context Protocol (MCP) Server. Razorpay also brought its app to ChatGPT for conversational payment management.
Paytm has taken a more limited step. Its Payment Gateway Plugin for ChatGPT, launched on September 7, allows businesses to use natural-language prompts to access transactions, refunds, settlements, payment links and sales trends. The integration uses MCP to connect authorised merchant payment information with ChatGPT.
Paytm’s current integration is read-only. It can retrieve permitted payment information but cannot initiate a payment, issue a refund or move funds. Payment execution remains within Paytm Payment Gateway and under the merchant’s control.
“Businesses need answers on their payments as quickly as they ask for them,” a Paytm Payment Gateway spokesperson said.
The proposed shift from users directly approving each payment to AI agents acting within pre-set permissions creates new questions around identity, spending limits, security and liability.
