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ChatGPT can make UPI payments for you, but your password will be…
The system will use existing UPI authentication layers, including biometric and PIN-based verification.
In a move that could redefine how Indians shop and pay online, the National Payments Corporation of India (NPCI) and fintech major Razorpay have partnered with Microsoft-backed OpenAI to launch a pilot programme that enables users to make UPI payments directly through ChatGPT.
Announced on Thursday, the initiative will test how artificial intelligence can handle real financial transactions, from exploring products to completing purchases, while ensuring user data and passwords remain protected.
ChatGPT turns into a shopping and payments assistant
The pilot brings “agentic AI” to payments, a form of artificial intelligence capable of performing multi-step tasks with minimal human input. In this case, users can chat with ChatGPT, browse products, and make secure UPI payments within the same conversation.
“Agentic payments are the next big step in AI innovation,” said Harshil Mathur, CEO of Razorpay. “We’re turning AI assistants from simple discovery tools into full shopping companions.”
The system will use existing UPI authentication layers, including biometric and PIN-based verification, which means ChatGPT will not have access to a user’s UPI PIN or password. Instead, users will approve transactions through their registered banking app or UPI ID, keeping sensitive data completely secure.
Backed by UPI’s new ‘Reserve Pay’ feature
The feature runs on UPI Reserve Pay, a new functionality that allows users to reserve funds for specific merchants before finalising a purchase. That means your password will be safe. This additional step adds a buffer of safety for AI-driven transactions and ensures payments only go through once a user confirms.
Axis Bank and Airtel Payments Bank are serving as official banking partners for the pilot, while Bigbasket has become one of the first e-commerce platforms in India to integrate the feature into its payment workflow.
How AI and UPI are converging
According to Oliver Jay, OpenAI’s Managing Director for International Strategy, “We’re 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 examine how conversational AI can simplify e-commerce and financial interactions while maintaining the high level of security associated with India’s UPI framework.
Meanwhile, rival fintech company Cashfree has also announced its own agentic AI payments solution for merchants, signalling the start of an AI-powered payments race in India.
If successful, NPCI’s partnership could mark a major step in making ChatGPT not just a conversational tool, but also a secure digital assistant capable of completing real-world financial tasks, all while keeping your password out of its reach.
