Key facts
- Pine Labs has launched an AI agent, P3P, that can autonomously make UPI payments.
- The AI agent bypasses the need for human authentication for each transaction.
- Users set a target price and approve a mandate once, allowing the AI to execute purchases.
- The technology is currently used on Gullak for digital gold purchases and at Vijay Sales for product deals.
- Safety features include verifiable identity, spend controls, and auditability, with user control to revoke mandates.
Fintech firm Pine Labs has introduced India's first agent-to-agent payment capability, allowing AI agents to make UPI payments autonomously. Dubbed the Pine Labs Payment Protocol (P3P), this technology enables AI agents to complete transactions without requiring human authentication like an MPIN, a significant departure from current practices where human approval is mandatory for each payment.
The P3P system builds upon existing UPI frameworks, specifically UPI One Time Mandates (OTM) and Reserve Pay. In this model, a user sets a specific rule or target price for a purchase and approves a UPI mandate only once. Subsequently, the AI agent can independently browse for products, negotiate prices, and execute payments based on the pre-approved conditions.
This capability is already live on Gullak, a digital gold savings platform, where users can set a rule like "Buy ₹500 of gold if the price drops below Rs 16,000 per gram." The AI agent then monitors gold prices and completes the purchase automatically, with the consumer receiving a confirmation rather than a request for permission. Gullak co-founder Manthan Shah described this as a move from "manual savings to autonomous wealth creation."
Beyond financial services, the P3P agent is also being deployed in retail, with Vijay Sales using it to help value-conscious consumers secure products at their target prices without constant monitoring. Karan Gupta, Managing Director of Vijay Sales, likened the agent to a "personal shopper who never misses a deal."
Pine Labs CEO Amrish Rau indicated that the AI agent will soon be deployed across various sectors including retail, fintech, and travel, enabling actions like securing flash sales, locking in down payments, or triggering savings at specific price points.
Addressing concerns about security, Pine Labs stated that Grantex provides the necessary controls. These include verifiable identity for the AI agent, delegated authorization, spend limits, and a full audit trail for every transaction. Consumers retain the ability to revoke or update their mandates at any time, ensuring they remain in control of their finances.