India’s payments firms deploy AI agents to automate merchant operations

BharatPe, PayU, Cashfree, Razorpay and Pine Labs are rolling out AI agents for payment recovery, chargebacks, refunds and reconciliation. The tools target SMBs and D2C brands, typically retaining human approval for customer outreach and money movement.

— Source publishedWed, 16 Sept, 2026, 11:00 IST·First seen Wed, 16 Sept, 2026, 11:57 IST·Source Inc42

What happened

Indian payment firms BharatPe, PayU, Cashfree, Razorpay and Pine Labs launched AI agents to automate merchant payment recovery, chargebacks, refunds and

Key facts

  • Five major B2B payments platforms
  • BharatPe agent works across more than 60 systems
  • SMB teams of around five people
  • Cashfree estimates up to ₹20,000 Cr in annual recovered sales
  • Pine Labs demonstrated an iPhone purchase trigger at a 40% price drop

What changed

Indian payment firms BharatPe, PayU, Cashfree, Razorpay and Pine Labs launched AI agents to automate merchant payment recovery, chargebacks, refunds and reconciliation. The tools target SMBs and D2C brands, with human approval controls for money movement and customer contact.

Why this matters

For SMB and D2C operators, payment providers’ AI agents could reduce reconciliation, refunds and recovery workloads, but human approval controls remain essential for customer communications and fund movements.

What to watch

  • Merchant adoption rates and paid attach rates for AI workflow modules.
  • Measured reductions in reconciliation time, chargeback losses, refund leakage and days-sales-outstanding.
  • RBI, NPCI or data-protection guidance on autonomous customer communication, payment actions and data use.
  • Whether major banks, ERP vendors and global PSPs release competing merchant agents.
  • Growth in outcome-based pricing tied to recovery, dispute wins or operational savings.