Razorpay, India’s biggest digital payments gateway, has introduced the nation’s first artificial intelligence (AI) payment gateway, developed on the Model Context Protocol (MCP) server. The innovation allows AI systems, chatbots, apps, and self-sustaining agents to trigger payments and process them in real-time.
Razorpay is changing the way businesses and developers integrate smooth financial transactions into AI-driven digital experiences by putting payments within smart technologies.
The Future of Payments Is Ambient, Seamless, and Agent-Driven
Razorpay has introduced a cutting-edge Model Context Protocol (MCP) server that allows businesses to seamlessly integrate AI assistants, agents, and automated systems with its payment ecosystem. This facilitates fast, secure transactions through easy text commands, eliminating the need for manual intervention through dashboards.
Previously, payments were managed via the Razorpay dashboard. Now, AI tools such as Claude, Zapier, VS Code, and in-house-developed agents are able to create payment links, process orders, provide refunds, and more, all of this straight away through Razorpay.
Explaining the process, the founder of Razorpay, Shashank Kumar, wrote in a X post that,
Connect to any AI system, whether it’s a chat, an app, or a fully autonomous system – you can embed payments within it. For example: Type “Send ₹500 payment link to Neha”, and a payment link is generated, shared on WhatsApp, and completed, all within seconds.
This change eliminates the requirement for manual input or numerous click processes. Businesses may now use conversational AI or automated routines to handle payments, refunds, and order tracking with no effort. Razorpay’s technology converts simple instructions into immediate financial actions, making payments effortless and discreet.
To begin, users must install the MCP server and configure an MCP client, such as Claude Desktop, VS Code, or Cursor, which allows AI systems to communicate directly with Razorpay’s capabilities.
What is the Model Context Protocol (MCP)?
Anthropic’s MCP (Model-Callable Protocol) is an open standard that facilitates seamless communication between AI models and external systems such as tools, APIs, and databases. Razorpay is the first payment gateway in India to use this protocol, opening the way for more intelligent and context-sensitive AI integrations in the finance space.
With the Razorpay MCP server installed and connected to supported AI clients like Claude Desktop, Cursor, or Visual Studio Code, developers can automate a wide range of payment functions. These include generating payment links and issuing refunds, all within a streamlined, AI-driven workflow.
Implications for Businesses and Developers
The innovation represents a major advance for startups, small and medium-sized enterprises, and enterprise developers. The integration mitigates backend complexity while enabling quicker user response times as well as more comprehensive personalisation using AI-driven payment flows.
The interoperability of the MCP server with GitHub-hosted open source initiatives promotes adoption while allowing flexibility for diverse use cases such as financial chatbots, AI customer support systems, as well as embedded commerce functionality. The CPO of Razorpay, Khilan Haria, said in a statement,
This small but significant launch carries massive future implications: seamless multi-provider connections, simplified payment flows across diverse systems, enhanced security with standardised protocols, and a foundation ready to power the next wave of innovations. It opens the door to intelligent, frictionless financial experiences where businesses no longer have to adapt to payments, payments adapt to them.
Razorpay’s AI-integrated MCP server sets a new standard for finance innovation in India and globally. Businesses can automate transactions by seamlessly integrating payments into AI workflows, thus increasing user engagement and speeding digital transformation. As AI-powered commerce advances, Razorpay positions itself at the forefront of intelligent, creative payment solutions.
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