Called “Agentic AI Card Checkout”, the new offering uses agentic AI to carry payment context forward and shorten the journey from purchase intent to authenticated card payments, the company said in a statement on Tuesday (June 16).
The solution is designed for sectors where customers often abandon transactions despite showing strong purchase intent, including travel bookings, bill payments, subscriptions, quick commerce, food delivery and e-commerce.
According to Paytm, the technology enables businesses and developers to build AI-driven checkout experiences across apps, websites and other digital interfaces through its Model Context Protocol (MCP), which facilitates secure API access between merchants, developers, AI agents and the payment gateway.
The company said customer authentication will remain mandatory, with transactions requiring either passkey-based biometric approval through fingerprint or facial recognition, or OTP-based authentication where applicable. The feature supports both debit and credit card payments.
A Paytm Payment Gateway spokesperson said the new card payment flow is intended to help businesses reduce checkout friction and improve payment completion while building intelligent payment experiences on the company’s payment infrastructure.
The launch comes as payment companies explore the use of artificial intelligence to streamline digital transactions and reduce cart abandonment rates in online commerce.
ALSO READ | Paytm plans 10% staff boost in AI pivot with some roles cut
First Published: Jun 16, 2026 11:27 AM IST
