The National Payments Corporation of India (NPCI), which is the government body responsible for the United Payments Interface (UPI), has revealed a collaboration with OpenAI and Razorpay to facilitate direct payments through ChatGPT.

The shift follows the announcement from Google and Perplexity about their AI-driven payment services.

Razorpay has now disclosed that it has begun private testing of the beta version of Agentic Payments, a feature allowing users to finalize transactions without exiting the AI platform they are currently using.

As reported by Reuters, the current pilot program aims to find out how UPI can be utilized “to autonomously complete transactions on behalf of users in a safe, secure and user controlled manner”.

UPI’s newly launched ‘reserve pay’ feature, which enables users to set aside a portion of their funds for specific merchants, along with UPI Circle.

A feature that allows users to make UPI payments without leaving an app.

Airtel Payments Bank and Axis Bank are the banking partners involved in the pilot program, while Tata Group’s BigBasket and network operator Vodafone Idea will be among the first platforms to facilitate payments through ChatGPT.

In a statement to TechCrunch, RazorPay co-founder and CEO Harshil Mathur mentioned that they have also conducted trials for the new agentic AI payment systems with other AI chatbots like Gemini and Claude.

However, it will take a few weeks before these integrations are officially launched.

AI companies will not have access to payment data, and users will need to authorize their transactions using a two factor authentication method.

DISCLAIMER: This article is derived from information available in the public domain.

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