New Delhi: India’s payment race is now moving toward AI-powered merchant onboarding.
PhonePe has launched a new AI-based integration system that allows businesses to connect its payment gateway within minutes, reducing a process that traditionally took days or even weeks.
The company said merchants can now use a conversational AI interface instead of relying heavily on developers to complete payment gateway integration. The system automatically handles API workflows, payload formatting, and error management, reducing manual coding work for businesses.
The launch highlights how AI is increasingly being used beyond chatbots and customer support in India’s fintech sector.
Payment firms are now focusing on backend automation, faster onboarding, and reducing operational delays for merchants.
PhonePe said the tool is designed mainly for small and medium enterprises, where limited engineering resources often slow online payment setup. Faster integrations could help businesses start transactions earlier and avoid long onboarding cycles.
Rahul Chari, CTO and co-founder of PhonePe, said the company has built its own “Integration Intelligence” layer on top of AI coding assistants to improve payment-related workflows.
Fintech firms are increasingly trying to reduce onboarding friction as more offline sellers and small businesses move online.
The use of AI for payment gateway integration could also reduce dependency on large tech teams, making digital payment infrastructure more accessible for startups and smaller merchants.
Unlike consumer-facing AI launches, PhonePe’s latest rollout targets a less visible but critical part of India’s fintech infrastructure, helping businesses go live faster in a market where speed directly impacts revenue generation.
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