Emkay sees meaningful fintech AI revenue emerging only from FY28
Indian fintechs including Paytm, Pine Labs, PhonePe and Razorpay are likely to first use AI to cut service and support costs, Emkay said. Revenue impact may build from FY28 as regulation for agentic payments evolves.
What happened
India fintech sector · Emkay says Indian fintech AI products from Paytm, Pine Labs, Eternal, PhonePe and Razorpay will initially drive service-cost and support
Key facts
- 144 of 452 Global Fintech Fest 2026 sessions (32%) focused on AI or agentic AI
- AI-led revenue expected from FY28 onwards
- UPI recorded 24.51 billion transactions worth ₹29.82 lakh crore in August 2026
- Unified Lending Interface had more than 64 lenders and 136 data services
- Razorpay model trained on roughly 3 trillion data points across 4 billion payments
What changed
Emkay says Indian fintech AI products from Paytm, Pine Labs, Eternal, PhonePe and Razorpay will initially drive service-cost and support efficiencies, while meaningful revenue is likely only from FY28 onwards amid pending agentic-payment regulation.
Why this matters
Prioritise AI in customer service, fraud operations and back-office workflows to capture near-term cost savings, while treating agentic-payment revenue as a FY28-plus opportunity dependent on regulatory clarity.
What to watch
- RBI or NPCI guidance on agent-initiated payments, delegated authentication, transaction limits, dispute handling and fraud liability.
- Evidence of lower cost-to-serve: support headcount growth, complaint-resolution times, fraud-loss ratios and employee productivity disclosures.
- Fintech launches of paid AI merchant subscriptions, reconciliation copilots, underwriting tools or automated commerce products.
- Changes in UPI monetisation, MDR policy, digital-lending rules and data-consent standards that alter the economics of AI-enabled payment workflows.
- Material AI-related fraud, mis-selling, data-privacy incidents or regulatory enforcement that raises compliance costs.