Razorpay POS, the offline payments arm of fintech firm Razorpay, has received the Payment Aggregator – Physical (PA-P) licence from the Reserve Bank of India (RBI). This authorisation enables the company to operate as an approved payment aggregator for in-store transactions, marking a significant milestone in its regulatory compliance journey.

Regulatory Authorisation Details

The PA-P licence strengthens Razorpay's regulatory standing in offline payments and allows it to support high-volume, in-store payment processing for various business segments. The authorisation covers multiple merchant categories and transaction types:

Comprehensive RBI Permissions Portfolio

With this latest approval, Razorpay now holds three key RBI permissions covering the complete payments ecosystem. The company secured its cross-border authorisation in December 2025, completing its regulatory framework:

• Online payments: Digital transaction processing
• Offline payments: In-store transaction aggregation
• Cross-border payments: International transaction facilitation

Strategic Impact on Omnichannel Operations

Shashank Kumar, MD and co-founder of Razorpay, highlighted that the licence strengthens the firm's ability to provide compliant in-store payment solutions as businesses expand their omnichannel presence. The authorisation supports merchants operating across both digital and in-store channels, enabling seamless payment integration.

Regulatory Framework Development

The RBI's PA-P framework aims to bring physical payment aggregation under regulatory oversight as more businesses integrate online and offline payment acceptance. This regulatory structure ensures compliance standards while supporting the growing demand for unified payment solutions across multiple channels.

In a groundbreaking move set to revolutionize digital payments, Razorpay, the National Payments Corporation of India (NPCI), and OpenAI have joined forces to introduce 'Agentic Payments'. This innovative feature enables users to conduct digital transactions directly through ChatGPT, seamlessly blending artificial intelligence with India's Unified Payments Interface (UPI).

AI Meets UPI: A New Era of Digital Transactions

The 'Agentic Payments' pilot project marks a significant leap in the integration of AI and financial technology. Users can now check, add, and purchase products within the ChatGPT interface, eliminating the need to switch between multiple apps or websites. This streamlined process promises to enhance user experience and convenience in digital transactions.

Key Features and Partnerships

The collaboration brings together some of the most innovative players in the fintech and AI spaces. Razorpay's robust payment infrastructure forms the backbone of this new system, while NPCI's UPI provides the necessary framework for seamless transactions.

How It Works

Users can interact with ChatGPT to:

1. Request assistance in ordering products
2. Receive options from merchant catalogues
3. Complete transactions using Razorpay's payment system

Throughout the process, users maintain full control, including the ability to track their orders in real-time and cancel them instantly if needed.

Future Implications

The long-term vision for 'Agentic Payments' is ambitious. The collaborators aim to develop the system further, potentially allowing AI agents to handle authorized payments autonomously through UPI. This could lead to a new paradigm in automated, AI-driven financial transactions.

As the pilot project unfolds, it will be interesting to observe how users adapt to this new form of AI-assisted shopping and payment. The success of 'Agentic Payments' could pave the way for more extensive integration of AI in everyday financial activities, potentially reshaping the landscape of digital transactions in India and beyond.