PayU rolls out MCP server to integrate AI assistants, payment systems

The MCP server helps AI assistants like Claude integrate with PayU's core APIs to automate tasks like invoicing, payment status checks, and customer onboarding

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Prosus-backed fintech PayU has joined other peers in the category to roll out a Model Context Protocol (MCP) server, where its merchants can connect their artificial intelligence (AI) assistants to the company’s payment systems.

 

Razorpay and Cashfree Payments rolled out the offering for their customers earlier this month.

 

An MCP server acts as a bridge to communicate between AI assistants — such as Claude or VS Code — and the company’s payment gateway.

 

Think of it like a “universal connector” — in other words, like a USB-C port — that allows different software systems to work together easily. This enables AI agents and assistants to interface directly with core application programming interfaces (APIs), streamlining integration for merchants of all sizes.

 

Without it, businesses would require manual and complex integration of compatible AI systems with every element of their fintech infrastructure, including applications such as payments, verification, and payouts. 

 

PayU said early use cases include generating payment links, emailing invoices to customers, fetching payment status using invoice IDs, and checking transaction or refund statuses.

 

The company said it was expanding the MCP server’s capabilities to include the ability to create invoices and orders through AI assistants and to onboard customers efficiently.

 

“The future of payments lies in intelligent automation and seamless integrations with advanced tools including GenAI platforms. With our latest MCP server, we are taking a leap forward in payments technology, enabling businesses to make their financial operations simple, more efficient, all while ensuring the highest standards of security,” said Narendra Babu, Chief Technology Officer at PayU.

 

PayU received the Reserve Bank of India’s (RBI) final licence to operate as an online payment aggregator this month.