Cashfree Payments launches AI-powered module to transform core services

The beta version, being tested in collaboration with Razorpay, targets a wide range of merchants—from startups to large enterprises—to validate the module's impact and scalability within the Indian fintech ecosystem

Fintech leader Cashfree Payments has launched the beta version of a new software module designed to transform merchant operations through the power of artificial intelligence. Known as the Model Context Protocol (MCP), this tool combines large language models (LLMs) with Cashfree’s proprietary APIs to automate complex processes and enhance service delivery across payment and verification workflows.

The MCP module functions as an AI engine that understands natural language prompts and executes real-time commands such as initiating payouts, verifying KYC documents, or generating payment links. This not only simplifies backend operations but significantly reduces execution time—from several minutes to mere seconds—offering merchants an efficient, scalable solution.

“This innovation allows merchants to go live within minutes,” said Nitin Pulyani, Senior Vice President of Product at Cashfree Payments. “With just one MCP server setup, the entire process becomes seamless and efficient. The goal is to remove operational friction and accelerate digital adoption.”

Currently, the beta version is being tested in collaboration with Razorpay, another key player in the Indian fintech ecosystem. The companies are targeting a wide range of merchants—from startups to large enterprises—to validate the impact and scalability of the module.

Cashfree integrates AI for merchant automation

Behind the scenes, Cashfree tested a variety of LLMs to power the MCP engine, including models from Anthropic (Claude), Google (Gemini), and X (Grok). These models were assessed for code generation, operational stability, and adaptability to high-volume environments. Pulyani confirmed that the models now have the maturity needed to deliver enterprise-grade results reliably.

“AI models are evolving fast. We now have the computing power and learning capability to support real-time financial applications. This is a turning point for merchant-centric automation,” he said.

While commercialization of MCP is still under consideration, the module has already been deployed internally across Cashfree’s core services, including payment collections and KYC verification. A proof of concept is also underway for integrating the module with payout services.

With this step, Cashfree Payments signals its continued commitment to leveraging cutting-edge AI to optimize digital financial infrastructure. As adoption of generative AI grows, such tools are expected to become integral in redefining how businesses manage financial operations.

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