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Razorpay Unveils India’s First AI-Powered Merchant-Centric Payment (MCP) Server for Seamless Transactions.

Banking & Finance | Dated: 07 May 2025

In April 2025, Bengaluru (Karnataka)-based Razorpay Software Private Limited, a leading payment service provider, launched India’s first Model Context Protocol (MCP) server for a payment gateway. This innovation enables businesses to seamlessly integrate Artificial Intelligence (AI)-driven systems directly with Razorpay’s payment infrastructure.

🎯 Key Highlights:

  • - For the first time, AI agents and tools like Claude, Zapier, and Visual Studio Code (VS Code) can natively communicate with Razorpay using simple natural language instructions.
  • - The launch of the MCP server aims to enhance workflow automation and reduce administrative overhead for businesses.
  • - The MCP server allows AI assistants to perform essential payment-related tasks such as generating payment links, initiating refunds, and managing transactions—eliminating the need for traditional dashboards or Application Programming Interfaces (APIs).

💡 Other Important Facts:

  • (i) With this integration, businesses using Razorpay can connect their AI tools—ranging from chat-based assistants to fully automated systems—directly to Razorpay’s backend. Payments can now be initiated and processed using simple commands, improving efficiency and reducing dependency on manual operations.
  • (ii) Previously, payment processing through Razorpay required manual input via dashboards. With the MCP server, that process is now AI-powered and automated.
  • (iii) The Model Context Protocol (MCP) was developed by Anthropic as an open standard. It allows Large Language Models (LLMs) to interact effortlessly with external tools, systems, and data sources.

📚 Test Your Knowledge:

Which company has recently launched India’s first AI-powered MCP server for payment processing?

Correct Answer: Razorpay

🚀 Quick Recap: