India pilots AI-powered UPI payments through ChatGPT
Yes India is progressing toward the UPI payment mode. India’s National Payments Corporation of India (NPCI) has launched a groundbreaking pilot program in partnership with fintech firm Razorpay and OpenAI, enabling users to make UPI payments directly through ChatGPT.
​Both corporate have started using the services are Axis Bank and Airtel Payments Bank, they are among the banking partners for the pilot. Meanwhile, Big Basket, a quick commerce platform Bigbasket is among the first platforms to allow customers to shop using the new AI-powered experience on ChatGPT.
The initiative, announced on October 9, marks the first integration of India’s real-time payment network with conversational AI, allowing users to complete purchases within the AI chatbot interface without switching between apps
The pilot launched during Global Fintech Fest 2025 highlights the following key aspects:
Multi-Stage User Experience
- The ChatGPT interface allows users to initiate product searches, receive recommendations, and make purchases—all within a single conversational workflow.
- UPI payment authorization, order confirmation, and instant digital receipts are managed by Razorpay’s payment gateway.
- The system emphasizes user empowerment, enabling quick order adjustments, cancellations, and real-time support from the chatbot.
Market Expansion Potential
- NPCI and OpenAI are exploring future rollouts beyond groceries, including electronics, travel, and bill payments.
- Axis Bank and Airtel Payments Bank provide the banking backbone, ensuring compliance with UPI regulations and robust customer protection mechanisms.
Security and Transparency
- Payments within ChatGPT use UPI’s multi-factor authentication, maintaining transaction security and user trust.
- Users interact with merchant catalogs without leaving ChatGPT, reducing friction and risk associated with external links and redirects.
Industry Reception
- The fintech community views the pilot as a blueprint for embedding AI into everyday commerce, with potential to scale across millions of merchants and users.
- Early limited access will help refine contextual recommendations, fraud detection, and personalized shopping experiences using conversational AI.
Strategic Importance
- NPCI sees this as a push to make India a global hub for AI-integrated fintech.
- The pilot could inspire similar integrations in other countries, given India’s outsized influence in mobile payments and digital commerce adoption.
