India’s digital payment story just took a bold leap forward. On October 9, 2025, the National Payments Corporation of India (NPCI) joined hands with Razorpay and OpenAI to launch a groundbreaking pilot. The initiative allows users to complete UPI-based e-commerce transactions directly through ChatGPT. This collaboration blends artificial intelligence with financial technology, creating a new era of conversational commerce.
ChatGPT Turns Talk Into Transactions
Imagine saying, “Buy this shirt from Myntra,” and seeing it done instantly. That’s now possible. Instead of switching between apps, users can chat, confirm, and pay — all in the same window.
Here’s how it works. ChatGPT reads your intent, checks product availability, and confirms details. Then, it connects to Razorpay’s payment system, which sends a secure UPI payment request. Once you approve it in your preferred UPI app, the payment completes automatically.
With this design, transactions feel natural. People can shop as easily as they talk.
According to Dilip Asbe, CEO of NPCI, this pilot “marks the next phase in India’s payments revolution.” He added that UPI built the rails for seamless payments, and now AI gives those rails intelligence and context.
How the Technology Works
The system runs through ChatGPT Plugins and custom OpenAI actions connected to Razorpay’s API. Step by step, the experience looks like this:
- You start a chat about a product or service.
- ChatGPT connects with the merchant’s live catalog.
- It fetches item details such as price and stock.
- You confirm the purchase.
- Razorpay triggers a UPI payment request.
- You approve the transaction on your UPI app.
- Razorpay confirms the payment within ChatGPT.
This chain keeps everything fast, conversational, and secure.
Harshil Mathur, Razorpay’s co-founder, explained, “People already describe what they want when chatting with ChatGPT. So why make them open another app to pay? We built a layer that keeps payments inside the same conversation.”
When AI Meets India’s Payment Network
India’s UPI already handles over 14 billion transactions monthly. Millions of small businesses and individuals use it daily. Now, ChatGPT adds intelligence to that vast ecosystem.
Unlike traditional checkout systems, ChatGPT understands language, emotion, and intent. It doesn’t just process transactions — it can recommend, compare, and even negotiate.
For example:
User: “Order a power bank under ₹1,000.”
ChatGPT: “Zebronics and Portronics both offer 10,000 mAh models for ₹899. Would you like fast charging?”
Once you reply, ChatGPT completes the payment within seconds. As a result, shopping feels human again — quick, simple, and personalized.
Why India Became the Launchpad
India often leads digital innovation. NPCI continues to push beyond basic payments through initiatives like UPI Lite, Credit on UPI, and Tap-and-Pay. Therefore, adding AI-driven payments fits naturally into the country’s roadmap.
OpenAI’s ChatGPT already supports real-time web browsing and Indian language prompts. Its ability to handle Hindi, Tamil, and other languages makes it the ideal partner for a multilingual market like India.
An NPCI official said during the Mumbai launch, “Our goal is to make payments as natural as conversation. ChatGPT understands people in their language, and UPI gives that understanding financial power.”
Security and Trust Come First
Security forms the backbone of this initiative. NPCI, Razorpay, and OpenAI designed multiple layers of protection.
ChatGPT never stores sensitive details such as UPI IDs or bank data. Razorpay manages encryption and tokenization under PCI-DSS compliance. All transactions move through secure channels with real-time authentication.
Moreover, users must confirm every payment manually. ChatGPT redirects the final approval to the user’s chosen UPI app. This step ensures control always stays with the user.
To enhance safety, Razorpay’s Fraud Guard AI monitors unusual patterns. If a suspicious chat or phishing attempt appears, ChatGPT warns the user immediately. Thanks to these measures, the system balances innovation with responsibility.
E-Commerce Platforms Embrace the Future
Several major Indian platforms joined the pilot early, including Zomato, Myntra, Blinkit, and BigBasket. Their integration lets users order food, fashion, or groceries through chat.
For instance, a customer can say, “Order groceries worth ₹500 from Blinkit,” and ChatGPT handles everything from cart creation to checkout.
Retailers love this model because it reduces abandoned carts. When transactions happen inside a chat, customers stay engaged longer.
A Zomato spokesperson noted, “We already use AI for recommendations. Now, ChatGPT lets users talk about what they crave and pay instantly. It’s convenience redefined.”
Business Impact and Benefits
Razorpay gains both transaction revenue and insights into new consumer behavior. Merchants get access to AI-powered discovery, which brings products closer to customers through natural conversation.
For OpenAI, the partnership opens an entirely new use case — turning ChatGPT into an actionable commerce engine rather than just an information tool.
Meanwhile, NPCI strengthens UPI’s position as the most flexible payment system worldwide. This collaboration showcases how fintech and AI can work together to simplify daily life.
Challenges Along the Way
Although the idea sounds revolutionary, several hurdles remain.
First, users must learn to trust AI-driven payments. Many still view ChatGPT only as a chatbot, not a financial interface. Educational campaigns will play a vital role.
Second, India’s linguistic diversity poses challenges. ChatGPT must continue improving its understanding of local accents and slang to serve rural areas effectively.
Third, regulatory approval will shape the future rollout. The Reserve Bank of India (RBI) will assess how safely AI handles financial commands and user consent.
Even with these challenges, early feedback remains positive. Test users praise the speed, simplicity, and intuitive nature of the experience.
A Ripple Effect Beyond India
If this pilot succeeds, global fintech ecosystems will take notice. Many countries already admire India’s UPI success. By combining that with ChatGPT’s AI, India could set a new global standard for digital payments.
OpenAI can expand similar integrations in Europe, Japan, and North America next year. Consequently, India’s experiment may shape how the world pays through conversations.
Analysts already call this shift the “WhatsApp moment” for payments. Just as messaging changed communication, conversational AI could now redefine commerce itself.
The Road Ahead
India thrives on innovation. It built UPI from the ground up and made it a global model. Now, it steps into the next frontier — merging conversation and commerce.
Each time a user says, “Pay through ChatGPT,” India demonstrates how imagination, technology, and trust can work together. This pilot doesn’t just introduce a new feature; it reimagines the payment experience entirely.
Ultimately, the future of e-commerce may not depend on clicks or taps anymore. It may depend on conversations — simple, secure, and intelligent.
As India leads this transformation, it once again proves that the world’s next big fintech revolution often begins with a single smart idea — and a few well-placed words.
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