Mumbai: PayU has introduced a new server technology that connects AI tools with its payment systems, aiming to simplify how merchants manage transactions.
The new Model Context Protocol (MCP) Server allows businesses to automate common payment tasks like generating payment links or tracking refunds through everyday AI assistants, such as Claude or tools like VS Code, without any coding.
AI Integration in Payments Workflows
The MCP Server acts as a backend bridge between the merchant’s AI tools and PayU’s payment gateway. By interpreting voice or text commands issued to AI platforms, the server fetches relevant data from PayU’s systems in real-time.
This could reduce the need for manual input or navigation through dashboards.
According to PayU, the server currently supports key use cases:
Generating and emailing payment links
Fetching payment status using invoice IDs
Tracking transaction, settlement, or refund statuses
These actions, typically handled through manual processes or technical integrations, can now be executed by AI tools using natural language prompts.
Push Toward Automation
This move reflects a broader industry trend where payment providers are aligning their infrastructure with generative AI platforms to improve business operations. As financial automation gains traction, companies like PayU are enabling easier API access through AI intermediaries.
Narendra Babu, CTO at PayU, noted that the company is expanding the server’s capabilities to cover invoice and order creation and customer onboarding. These are also expected to run through AI platforms without requiring custom development.
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