Prosus-backed Fintech PayU has joined its peers in the category in launching a Model Context Protocol (MCP) server, which allows merchants to connect their artificial intelligence (AI) assistants to the company's payment systems.
Key Highlights
- PayU introduces MCP Server, enabling AI assistants to seamlessly integrate with its payment systems.
- The MCP Server allows merchants to automate tasks like invoicing and payment status checks via AI.
Razorpay and Cashfree Payments launched the service for their customers earlier this month.
An MCP server serves as a link between AI assistants (such as Claude or VS Code) and the company's payment gateway.
Consider it a "universal connector" — similar to a USB-C port — that enables various software systems to work together seamlessly. This allows AI agents and assistants to interact directly with core application programming interfaces (APIs), which simplifies integration for merchants of all sizes.
Without it, businesses would have to manually integrate compatible AI systems into every aspect of their fintech infrastructure, including applications like payments, verification, and payouts.
PayUsaid's early use cases included creating payment links, emailing invoices to customers, retrieving payment status via invoice IDs, and checking transaction or refund statuses.
The company stated that it was expanding the capabilities of the MCP server to include the ability to create invoices and orders using AI assistants, as well as efficiently onboarding customers.
"The future of payments is in intelligent automation and seamless integration with advanced tools such as GenAI platforms. With our latest MCP server, we are making a significant leap forward in payments technology, allowing businesses to simplify and streamline their financial operations while maintaining the highest levels of security," said Narendra Babu, PayU's Chief Technology Officer.
PayU received its final licence to operate as an online payment aggregator from the Reserve Bank of India (RBI) this month.
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