Imagine talking to your AI chatbot and being able to shop and make payments all while you're chatting. This isn't science fiction, but it's soon going to become reality. Now, you'll be able to shop and make UPI payments while talking to AI chatbots like ChatGPT. This is a major change that will completely transform the way we shop and pay online. NPCI (National Payments Corporation of India) has partnered with OpenAI and Razorpay for this remarkable partnership.

Direct payments through AI chatbots: how will this magic happen?
NPCI, which operates UPI, has joined forces with OpenAI and Razorpay. This means that direct payments will now be possible through AI chatbots like ChatGPT. This is another big news after Google and Perplexity's own AI-powered payment services.

Razorpay has also started private beta testing of this feature called 'Agentic Payments'. This feature will allow you to complete transactions without leaving the AI platform.

UPI's New Look: 'Reserve Pay' and 'UPI Circle'
This new system will utilize UPI's unique 'Reserve Pay' feature. It allows you to set aside a portion of your funds for a specific merchant, ensuring instant payment. Additionally, the 'UPI Circle' feature will also be useful, allowing you to make UPI payments without leaving any app.

This is all being conducted as a pilot project to see how UPI can be used to complete transactions in a secure and controlled manner for users. This technology will give AI the freedom to act on your behalf, but under your complete supervision.

Which banks and platforms are participating?
Airtel Payments Bank and Axis Bank are banking partners in this pilot program. These banks will help roll out this new technology to customers. Initially, companies like Tata Group's BigBasket and Vodafone Idea will use this payment system on their platforms. RazorPay co-founder and CEO Harshil Mathur stated that they have completed trials of this new "Agency AI Payment" system with other AI chatbots like Gemini and Claude. However, these features will still take a few weeks to go live.

AI Companies Won't Access Your Payment Information
One important thing is that with this new system, AI companies won't receive any information related to your payments. This is very good news for your privacy. Furthermore, you will be required to authorize your payments through two-factor authentication for every transaction. This means your payments will always be secure, and no transaction will be processed without your approval. This step will reassure users that their money is in safe hands.

Future-Ready: The Confluence of AI and Payments
No specific revenue-sharing model has been finalized for this "Agency AI Payment" system. However, this move could help AI companies like OpenAI and Google retain users on their platforms. The more easily people can shop and make payments through AI, the more they will use these platforms. This marks another major step in India's digital payments revolution. This combination of AI and UPI will forever change the way online shopping and payments are conducted. This demonstrates how rapidly technology is advancing and how much it is simplifying our everyday tasks.

Disclaimer: This content has been sourced and edited from Zee Business. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.