Can Razorpay Turn ChatGPT Into India’s Next Commerce Channel?

Razorpay is building AI-native commerce infrastructure that lets merchants create ChatGPT storefronts and sell products within the chat interface.

As brands such as Nykaa, begin treating AI assistants as a customer acquisition channel, payment companies are racing to build the infrastructure for AI-led commerce

Razorpay says it is working with around 50 brands on ChatGPT commerce pilots and about 200 businesses on its Agent Studio platform

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ChatGPT is beginning to emerge as more than a search assistant for ecommerce. For a growing number of brands and marketplaces, it is also becoming a new channel for product discovery and, increasingly, shopping.

Nykaa offered one of the clearest signals of that shift in its recent Q1 FY27 management commentary.

The beauty retailer said it has become the top beauty brand on ChatGPT and Gemini through what it calls “Answer Engine Optimization” (AEO), and indicated that AI answer engines are emerging as a customer acquisition channel alongside Google Search. 

It also announced plans to bring Nykaa Beauty and Nykaa Fashion shopping experiences into ChatGPT as part of a broader OpenAI partnership.

If AI assistants become another place where consumers discover products, merchants will need more than visibility, they will also need the ability to complete transactions inside those conversations. That is the opportunity Razorpay is betting on.

If AI assistants become another place where consumers discover products, merchants will need more than visibility, they will also need the ability to complete transactions inside those conversations. That is the opportunity Razorpay is betting on.

Months before AI commerce entered mainstream investor conversations, the payments company began working with OpenAI and NPCI on infrastructure that enables merchants to build ChatGPT-native storefronts and complete purchases within the chat interface. 

According to CEO Harshil Mathur, Razorpay is currently working with around 50 brands and several ecommerce marketplaces experimenting with agentic commerce, with skincare brand Innovist among the first to go live on its ChatGPT commerce stack for select users.

According to CEO Harshil Mathur, Razorpay is currently working with around 50 brands and several ecommerce marketplaces experimenting with agentic commerce, with skincare brand Innovist among the first to go live on its ChatGPT commerce stack for select users.

The experience will be enabled on UPI Reserve Pay, which allows users to block a specific amount of funds for future debits to designated merchants, and UPI Circle, a solution that delegates UPI authentication,........

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