Paytm Payment Gateway has announced the launch of Agentic AI Card Checkout, a new payment solution that aims to reduce friction during online transactions and help businesses improve payment completion rates.
The new feature has been introduced by Paytm Payments Services Limited, the company’s payment gateway arm. According to Paytm, the solution uses agentic artificial intelligence to simplify the card payment process while maintaining existing security and authentication requirements.
Online businesses often face a common challenge where customers abandon transactions even after showing clear purchase intent. Paytm says its new checkout system is designed to address this issue by carrying payment-related context throughout the transaction journey and reducing the number of steps required before authentication.
The company said the solution is aimed at sectors where faster checkout can directly influence conversions, including travel bookings, bill payments, subscriptions, quick commerce, food delivery, and e-commerce platforms.
Alongside the launch, Paytm has also introduced support for its Model Context Protocol (MCP). The protocol is designed to enable secure API connectivity between businesses, developers, AI agents, and Paytm Payment Gateway. The company said this would allow developers to build AI-driven checkout experiences across websites, applications, and other digital commerce platforms.
Customer authentication remains mandatory under the new system. Users can complete authentication through passkey-based biometric methods such as fingerprint or facial recognition. OTP-based authentication will continue to be available wherever required.
The new checkout solution supports both debit and credit card transactions.
The announcement comes at a time when technology companies are increasingly exploring AI-powered commerce experiences. Businesses across industries are looking at ways to use artificial intelligence to simplify customer journeys while maintaining security and regulatory compliance during online transactions.
Paytm Payment Gateway currently supports multiple payment methods and offers services such as payment links, subscriptions, analytics, and merchant payment solutions. The company says its platform is capable of processing more than 3,000 transactions per second and provides next-day settlements for businesses.
