ChatGPT Enters India’s UPI Payment Ecosystem
In a groundbreaking step for conversational commerce, India’s National Payments Corporation of India (NPCI) and fintech firm Razorpay have partnered with OpenAI to launch a pilot that enables Unified Payments Interface (UPI) transactions directly within ChatGPT. The initiative, unveiled on October 10, 2025, marks the first real-world test of AI-driven payments through chat-based interaction.
The project integrates ChatGPT’s conversational capabilities with India’s trusted digital payment infrastructure. Initially, the pilot will focus on testing transaction safety, user adoption, and the potential of “agentic AI” — an advanced form of artificial intelligence capable of completing tasks independently.
From Chatting to Shopping: How It Works
The pilot effectively turns ChatGPT into an intelligent shopping assistant. Users can browse products, ask for recommendations, and make secure payments — all through a single chat window. The goal is to transform ChatGPT from a purely informational tool into a fully interactive assistant capable of completing real transactions.
Harshil Mathur, CEO of Razorpay, called it “the next big step in AI innovation,” explaining, “We’re turning AI assistants from simple discovery tools into full shopping companions.”
Through the new feature, ChatGPT users will be able to engage in natural conversations about products, compare options, and make instant payments using UPI — eliminating the need to switch apps or open payment gateways manually.
Powered by UPI’s New Reserve Pay Feature
At the core of this system is Reserve Pay, a new feature from UPI that allows users to pre-authorize funds for specific merchants. This ensures that payments can only be processed after user confirmation, adding an additional layer of security for AI-based transactions.
Axis Bank and Airtel Payments Bank are the official banking partners supporting the pilot, while Bigbasket has become one of the first e-commerce platforms to enable ChatGPT-powered payments.
By integrating these partners, the project aims to demonstrate how safe, scalable, and intelligent digital transactions can become through the use of conversational AI.
What OpenAI and NPCI Are Aiming For
Oliver Jay, OpenAI’s Managing Director for International Strategy, said the company is “excited to work with NPCI and explore how AI can combine with one of the world’s most trusted real-time payment systems.”
The pilot will explore how ChatGPT’s agentic AI can handle secure transactions without human intervention, while maintaining transparency, user control, and data safety. NPCI’s involvement ensures that all UPI-linked payments remain compliant with India’s financial and cybersecurity standards.
The project also aims to identify new opportunities where conversational AI can simplify complex financial tasks — from bill payments and ticket bookings to microtransactions — while ensuring users always remain in control.
India Leads the Global AI Payments Race
This pilot places India at the forefront of the global AI payments revolution. The country’s UPI system, already a model for instant payments worldwide, is now becoming a testing ground for how artificial intelligence can integrate seamlessly with financial infrastructure.
While ChatGPT’s partnership with NPCI and Razorpay is the most high-profile collaboration so far, other Indian fintech firms are also racing to blend AI with financial technology. Rival company Cashfree has announced its own AI payments solution, underscoring the momentum toward conversational commerce.
Experts say that these innovations are setting the stage for a future where users can interact with financial systems naturally — simply by talking to them.
What This Means for Users
For consumers, this integration means payments could soon become as simple as sending a message. Imagine asking ChatGPT to “order groceries from Bigbasket” or “pay the electricity bill,” and seeing the transaction completed instantly through UPI.
By combining the simplicity of chat-based interaction with the reliability of UPI, this pilot could redefine how Indians make everyday payments. As agentic AI becomes more capable, ChatGPT may evolve into a true digital assistant — handling transactions, reminders, and services without requiring separate apps.
The pilot also promises strong safeguards, from Reserve Pay’s authorization system to encrypted banking integrations, ensuring user safety remains a top priority.
India’s rapid embrace of AI-powered transactions highlights how fintech innovation and digital infrastructure can work hand in hand — making daily life faster, safer, and more convenient.
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