NPCI’s agentic AI and next-gen upgrades are turning UPI from a payment utility into a proactive, decision-making digital companion. Here’s what the future of Indian money looks like.
UPI 2.0: Entering the Age of Intelligent Commerce
Unified Payments Interface (UPI) is no longer just a transactional tool. It is transforming into a platform for intelligent, autonomous commerce, driven by real-time decisions and AI.
At the Global Fintech Fest (GFF) 2025, NPCI introduced a bold pilot—an AI assistant generated a recipe, ordered ingredients via BigBasket, and completed a credit card payment—all autonomously. This marked the first major public demo of agentic AI layered on top of UPI, redefining user interaction with money.
Agentic AI: From Discovery to Checkout
This new UPI model isn’t about just making payments; it’s about managing the entire purchase journey. Powered by platforms like Google Gemini and embedded in UPI flows, NPCI’s AI agents can now:
- Discover products or services
- Compare and decide based on user preferences
- Complete purchases without manual inputs
The only human role? Initial authorisation—everything else is automated.
IoT + UPI: Payments Without Phones
UPI’s next frontier is the Internet of Things (IoT). At GFF 2025, NPCI showcased:
- Smartwatches, fridges, and connected cars making real-time UPI payments
- Use cases where devices, not people, initiate and complete transactions
- Elimination of screen dependency—think of a fridge restocking milk or a car paying for tolls
This leap toward device-led autonomy aims to blend convenience with intelligent automation.
Reserve Pay: Credit Cards Reimagined
The newly introduced UPI Reserve Pay lets users lock a portion of their credit card limit for future payments via UPI.
This feature empowers users to plan expenses while maintaining control, blending the flexibility of credit with UPI’s real-time, secure infrastructure.
AI-First Customer Support
NPCI has launched an AI-led customer care system designed to:
- Resolve disputes faster
- Automate complaint tracking and resolutions
- Use an in-house Small Language Model (SLM) for accurate, contextual responses
This will greatly reduce wait times and bring precision to grievance redressal in UPI.
Beyond Screens: Voice & Biometric Transactions
UPI transactions no longer require PINs or even a screen. NPCI has enabled:
- Voice-based authentication through wearables and smart glasses
- On-device biometrics (face/fingerprint recognition) to complete transactions
- QR code scanning on AR glasses with instant voice verification
These advancements make UPI more accessible, inclusive, and user-friendly—especially for the elderly and digitally underserved.
One Platform to Rule All: Banking Connect
In a move to simplify backend systems, Banking Connect was launched—an infrastructure layer allowing all banks and gateways to integrate via a unified platform.
It streamlines settlement, improves interoperability, and reduces friction for developers and fintechs alike.
The Real Question: Simpler or More Complex?
As AI and automation embed deeper into financial transactions, some users may feel overwhelmed, questioning the lack of control or transparency.
Will a world where your fridge pays your grocer or your car fuels itself via UPI feel empowering or intrusive? That’s the paradox NPCI will need to address—balancing autonomy with assurance.
