NPCI launches AI-powered UPI payments via ChatGPT in partnership with Razorpay and OpenAI, revolutionizing digital shopping and fintech innovation in India.
NPCI, Razorpay, and OpenAI Launch AI-Powered UPI Payments in India
Mumbai | October 9, 2025 | The Interview Times — In a groundbreaking move that could redefine India’s digital payment ecosystem, the National Payments Corporation of India (NPCI) has launched an AI-powered UPI payment pilot integrated with ChatGPT. This innovative program allows users to make UPI payments seamlessly within a conversational AI interface — marking a milestone in the country’s fintech evolution.
Announced on October 9, 2025, during the Global Fintech Fest in Mumbai, the initiative represents a joint collaboration between NPCI, Razorpay, and OpenAI. It showcases the next generation of AI-driven financial transactions and e-commerce, positioning India as a global leader in fintech innovation.
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AI-Powered UPI Payments: Revolutionizing Payments with AI and UPI Integration
The pilot leverages India’s Unified Payments Interface (UPI) — the backbone of over 20 billion monthly transactions — to integrate conversational AI with real-time payments.
Termed “Agentic Payments,” this feature enables users to shop and pay simply by chatting with ChatGPT. For example, a user can say:
“Help me order ingredients for Chicken Tikka Masala for 4 people,”
and the AI assistant will autonomously search merchant catalogs, recommend items, finalize selections, and complete payments using Razorpay’s secure UPI infrastructure.
BigBasket, owned by the Tata Group, is among the first e-commerce platforms to support this AI-driven feature. Banking partners Axis Bank and Airtel Payments Bank are also backing the pilot.
The integration enhances existing UPI innovations such as UPI Circle and UPI Reserve Pay, offering features like seamless order tracking, instant cancellations, and real-time security — all within the ChatGPT interface.
AI-Powered UPI Payments: Strategic Push at Global Fintech Fest 2025
The announcement coincides with the Global Fintech Fest 2025, underlining India’s growing global influence in fintech. Notably, ChatGPT has a strong footprint in India, which is OpenAI’s second-largest market, with 800 million weekly active users worldwide.
This development comes after OpenAI faced UPI integration issues with Stripe during ChatGPT’s India launch in August. The new Razorpay-led initiative aims to overcome those challenges by blending UPI’s trusted real-time network with advanced AI capabilities, ensuring smoother and more secure transactions.
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AI-Powered UPI Payments: Industry Leaders on the AI–Fintech Revolution
Harshil Mathur, CEO of Razorpay, hailed the project as transformative:
“We are elevating AI assistants from simple discovery tools to full-fledged shopping agents that offer every buyer a personal assistant capable of product discovery and seamless purchase.”
Oliver Jay, Managing Director of International Strategy at OpenAI, highlighted the strategic potential of the partnership:
“Combining advanced AI with UPI — one of the world’s most trusted payment systems — unlocks a new era of effortless and secure commerce, making digital payments more user-friendly and accessible.”
AI-Powered UPI Payments: Future Implications and Expansion Plans
The pilot aims to study how AI agents can autonomously complete secure transactions while maintaining user control, privacy, and data protection.
If successful, it could pave the way for wider adoption across e-commerce, retail, and service sectors, reshaping how consumers, merchants, and payment systems interact.
With India continuously innovating in digital payments, AI, and fintech regulation, this initiative positions NPCI, Razorpay, and OpenAI at the forefront of digital commerce transformation.
As the lines between AI conversation and financial action blur, users can look forward to a future where chatting with AI doesn’t just inform — it completes your transactions instantly and securely.
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