This is important news for Google Pay, PhonePe, and Paytm users. In the future, AI may enter UPI payments, enabling them to make small digital payments without customer approval. According to a Reuters report, India is developing a framework that will allow AI agents to make small digital payments on behalf of users without requiring approval for each transaction. This proposed system will be based on UPI. If implemented, India could be among the first countries to enable “agentive payments” through the country’s national digital payment infrastructure.
If you make UPI payments, you likely use apps like Paytm, Google Pay, and PhonePe. Users have complete control over these apps and make payments based on their needs. With the introduction of AI agents into this system, users can provide necessary instructions to their AI agents, telling them when and how much money can be spent. After this, the user will not need to make the payment. The AI ​​will do the work itself.
According to reports, this framework has been named the ‘Unified Agent Protocol’.
It is likely to be announced at the Global Fintech Fest to be held in Mumbai next week.
Under the system, users will be able to instruct AI agents on when and how much money they can spend.
Payment companies in countries like the US, Europe, Singapore, and Australia are also working on such systems.
It is being said that AI agents may initially be used for payments that occur frequently, such as grocery purchases. On e-commerce platforms, customers will be able to authorize the AI ​​agent to make purchases under set rules, rather than manually approving each transaction.
According to reports, the new framework will be based on two existing features of UPI.
UPI Circle: In this, the main account holder authorizes payments to another user. Now, this same power can be granted to AI agents.
Reserve Pay: This allows customers to block funds for multiple payments. Currently, banks allow a maximum block of up to ₹10,000 for 90 days, although this limit may be reviewed for AI payments.
If the Indian government integrates AI into UPI, it could become a new revolution. While initially, people may lack trust and understand it, it could gradually strengthen its position in the payment system.