en.Wedoany.com Reported - Pine Labs has launched a new payment infrastructure in India called the Pine Labs Payment Protocol, enabling AI agents to autonomously complete UPI transactions. The system, named P3P, is built on the existing UPI authorization framework and is said to eliminate the need for manual authentication during payment processes. Users can set spending rules with a one-time authorization, allowing AI agents to execute purchases on their behalf.
India's existing UPI infrastructure was designed for human-initiated transactions, requiring users to verify payments using methods such as MPIN. Pine Labs states that while this has been successful for digital payments, it creates a bottleneck for agent commerce—a growing industry where AI systems can autonomously browse, compare products, negotiate prices, and complete purchases. The P3P system addresses these limitations by extending UPI's existing authorization-based architecture, building on frameworks such as One Time Mandates (OTM), Reserve Pay, and Single Block Multiple Debit (SBMD). Users must first provide approval through a one-time mandate, after which AI agents can automatically execute transactions within predefined limits without requiring additional authentication for each purchase.
The company has partnered with Grantex to provide identity verification, authorization delegation, spending controls, compliance checks, and audit trails. The protocol also adopts HTTP 402, a web standard for machine-readable payment requests, to facilitate payment interactions between agents. Pine Labs emphasizes that users retain control throughout the process, allowing them to define spending limits, verify AI agent identities, review past transactions, and revoke permissions.
The P3P system is reportedly already in production and being deployed across multiple industries. Digital gold investment platform Gullak has integrated P3P into its services, and electronics retailer Vijay Sales is conducting a proof-of-concept deployment of the protocol. Currently, the system is limited to UPI payments, but the fintech company is working with major card networks to extend the protocol to card-based transactions. According to industry estimates, Pine Labs projects the global agent commerce market will reach $65.47 billion (approximately ₹6.22 trillion) by 2033, and believes India will play a key role in the growth of autonomous commerce due to its extensive UPI infrastructure.
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