With over 491 million users, 65 million merchants and 675 connected banks, India carries out more than 640 million transactions in a day, and leads the world in digital payments.
To advance digital payments and improve user experience, the National Payments Corporation of India (NPCI) has partnered with Razorpay and OpenAI to launch a new agentic payments initiative that enables UPI payments directly through ChatGPT. While it is still in the pilot stage, this integration allows users to automate routine tasks by entering a simple chat prompt.
What Are Agentic Payment Systems?
Agentic payment systems are a new generation of payment systems powered by artificial intelligence that can autonomously execute transactions on behalf of users. Unlike traditional digital payment platforms, where every action from entering payment details to confirming a transaction requires manual input, agentic systems can carry out tasks based on simple instructions and contextual understanding.
This makes digital payment systems not only faster, but also smarter and more adaptive to individual user behaviour, all while maintaining strict compliance with regulatory and security standards. Bigbasket is the first quick-commerce platform integrated into ChatGPT, allowing users to order groceries directly via chat, thus providing a seamless experience to users.
How Does Agentic Payment Systems Work?
When a user provides a command, the AI interprets the intent, validates it against security protocols, and chooses the payment system to make payment. Users retain full control with real-time tracking and instant revocation, ensuring a secure and user-first shopping and payment experience.
In one of its blog posts, NPCI explains how ChatGPT’s agentic payment feature will work with a practical example. A user could ask, “Help me order ingredients for a Thai-style vegetable curry for 4 people from BigBasket.” The AI agent then searches BigBasket’s catalogue, presents product options, and, with a single confirmation, places the order via Razorpay’s payment system.
Key Use Cases Of The Agentic Payment System
With agentic payments, shopping and payments become effortless. ChatGPT transforms into a trusted AI shopping partner, capable of completing transactions intelligently and securely, all with a single prompt. Here's how it will ease everyday lives for users in the near future.
Meal Planning & Grocery Orders
Users can now just ask ChatGPT about what to cook, but also command it to order ingredients for a specific recipe, and the AI will select products from BigBasket and automatically complete the payment via Razorpay.
Automate Regular Purchases
AI can manage regular purchases, such as monthly grocery or utility bills, etc, so that you don't even need to set a reminder or worry about missing a due date.
Personalized Recommendations
The system can suggest products based on your past purchases, dietary preferences, or budget and assist in decision-making.
Budget Management
The AI can track spending patterns, alert users of overspending, and suggest cost-effective alternatives when placing orders.
Advantages And Drawbacks Of Agentic Payment System
The blend of Artificial Intelligence (AI) with Unified Payment Interface (UPI) is an innovative step that will open doors to several new opportunities. This integration has the potential to revolutionise the way we make payments, manage finances, and interact with digital platforms. But its widespread adoption, users must know it also comes with certain drawbacks.
Advantages
Efficient And Accurate Transactions
Agentic payment systems significantly improve efficiency by automating repetitive tasks and reducing the need for manual interruptions. This automation minimises human error, speeds up workflows, and ensures that payments are processed accurately and on time.
2. Round The Clock Functionality
Agentic payment systems can function 24/7. Unlike humans, AI don't need breaks or have time zone limitations, ensuring seamless and uninterrupted service. Whether it’s paying bills, transferring funds, or placing an order, users can rely on them for instant, round-the-clock financial operations.
3. Smarter Financial Behaviour Modelling
Agentic payment systems analyse user behaviour, spending patterns, and transaction history. By understanding individual preferences and habits, these systems can provide tailored recommendations, suggest cost-effective alternatives, and even anticipate user needs. This not only helps users make more informed financial decisions but also encourages smarter and more responsible spending habits over time.
4. Integration Across Services:
Agentic payment systems can link multiple platforms, such as UPI, quick-commerce apps, and subscription services, within a single interface. This integration reduces friction and centralises financial tasks, creating a streamlined workflow for users.
Drawbacks
1. Limited Reasoning
Agentic payment systems are great at automating routine tasks, but they have limits when it comes to complex decision-making. They follow instructions and rules accurately but may misinterpret unusual situations. Tasks that require judgment, ethical considerations, or problem-solving still need human supervision.
2. Risk Of Fraud
While agentic payment systems are designed with security in mind, they are not completely immune to fraud. Cybercriminals could exploit vulnerabilities to attempt unauthorised transactions. Users must remain vigilant, use strong authentication methods, and monitor activity regularly.
3. Data Privacy and Security Concerns
Agentic payment systems handle sensitive user data, including transaction history, personal details, and payment credentials. If not properly managed, this information could be exposed to unauthorised access or misuse. Ensuring strong encryption, secure storage, and compliance with data protection regulations is crucial. Users also need to remain cautious and follow best practices to maintain privacy while using AI-driven payment systems.
4. Technical Glitches
Agentic payment systems might occasionally face technical glitches, system downtime, connectivity issues, or integration errors, which might cause delays or failed payments. Hence, it might still need human supervision.
The Future Of Agentic Payment Systems
Protecting sensitive financial data, preventing fraud, and ensuring privacy are essential for building trust among users. As these systems evolve, developers and regulators must continue to implement robust security protocols, strong authentication methods, and constant monitoring to mitigate risks and maintain a safe digital environment.
The future of agentic payments is extremely promising. As AI becomes smarter and more adaptive, these systems will not only automate routine transactions but also provide personalised financial insights, predictive recommendations, and seamless integration across platforms.