Payments industry adopts AI-led interfaces, LLMs to reshape transactions

Fintechs, NPCI are deepening AI integration across India's payments stack, from agentic interfaces and conversational payments to domain-specific LLMs designed to streamline disputes and transactions

India’s payments ecosystem is entering a phase of deeper integration with artificial intelligence (AI) systems as players integrate with agentic interfaces and partner with global AI software firms to process transactions.

 

Fintechs are deploying agentic interfaces that interact with agents of a merchant to allow transaction completion.

Alongside the push at the application layer, there is a parallel focus on developing and refining the underlying large language model infrastructure.

 

For instance, the National Payments Corporation of India (NPCI) rolled out FiMI (Finance Model for India), a domain-specific language model for the Indian payments ecosystem.

 

NPCI said that FiMI is built to natively understand the complexity of Indian payment systems, including India’s real-time payments system, Unified Payments Interface (UPI), along with associated transaction dispute handling, management of payment mandates and other functions.

 

The feature has been rolled out as NPCI UPI Help Assistant, an AI-powered conversational support system. The assistant supports Indian languages such as Hindi, Telugu and Bengali along with English, with more in the pipeline over the next six to eight months.

 

Bengaluru-based Cashfree Payments said that its AI transactions feature, in collaboration with Swiggy and Mastercard, enables firms to accept payments within conversational interfaces like ChatGPT and Claude.

 

This implies that the payments extension would rest within agentic chat interfaces.

 

Unveiled at India AI Impact Summit 2026, the feature Cashfree Here allows businesses to accept payments natively inside conversational interfaces, marking a decisive shift in how AI-driven commerce is experienced, the firm said in a statement.

 

Fintech major Razorpay on Tuesday partnered with agentic software development platform Replit. The partnership will allow products developed using the AI platform to accept recurring payment methods like UPI and card payments.

 

To illustrate an example, Razorpay explained how this can work.

 

A developer on Replit can prompt the platform to generate an AI-powered personal finance assistant with an ability to track expenses and investments. Once the application is generated, Razorpay’s monetisation layer will be embedded into the app, allowing payment acceptance, including UPI and card payments.