Razorpay introduces India’s first MCP server for AI-based payment integration

Fintech firm Razorpay has launched what it claims is India’s first Model Context Protocol (MCP) server for a payment gateway, enabling businesses to integrate Artificial Intelligence (AI)-driven systems directly with its payment infrastructure. The new system allows AI assistants to carry out tasks such as creating payment links, initiating refunds, and managing transactions without the need for traditional dashboards or Application Programming Interfaces (APIs).

With this development, businesses using Razorpay can now connect their AI tools—ranging from chat-based assistants to automated systems—directly to Razorpay’s backend. This enables payments to be initiated and processed with simple commands, making the process faster and less dependent on manual inputs.

For instance, commands like “Send a payment link of ₹500 to Neha on WhatsApp” can now be executed in real time. Razorpay’s system will generate the payment link, send it via WhatsApp, and complete the transaction within seconds.

The company said this shift makes payment handling more efficient and adaptable to various platforms, from apps and websites to chat-based AI services. It also suggests potential for new features in the future, such as voice-activated payments and real-time fraud detection.

Razorpay’s Chief Product Officer, Khilan Haria, said the new system represents a step towards making payments more seamless and integrated with everyday business tools. He added that future updates are already in development to expand the role of AI in financial workflows.

As competition grows in India’s fintech sector, the launch positions Razorpay to further its reach in AI-powered business finance solutions.

Earlier, Razorpay announced a partnership with Airtel Payments Bank to offer Unified Payments Interface (UPI) infrastructure services through its new UPI Switch. This move marks the fintech company’s entry into the backend side of the Unified Payments Interface ecosystem.

In a statement, Razorpay said the UPI Switch is capable of handling up to 10,000 transactions per second, aiming to provide businesses with faster access to UPI features. The company also claimed that the system can resolve issues within 24 hours, which it said is seven times quicker than the industry average.

The UPI Switch reportedly operates with a latency of under 100 milliseconds and offers a 4–5% improvement in transaction success rates. Razorpay added that the system includes customisable features to better suit business needs and allows for near-instant refunds, as opposed to the usual industry processing time of up to three days.