Is this the end of tap-heavy payment apps? PhonePe brings AI search, one-touch UPI authentication

PhonePe on Friday announced the launch of an AI-powered natural language search feature that would enable users to navigate the app, make payments and access transaction insights through simple voice or text commands.

Built using Microsoft Foundry, the new capability allows customers to initiate and complete in-app tasks using conversational prompts, replacing traditional menu-based navigation with intent-driven routing.

For example, commands such as “Pay Hemanth 20 rupees”, “Recharge FASTag” or “Gold price” directly take users to the relevant payment interface or information page, the company said.

The feature can also interpret whether a user is trying to make a payment, complete a purchase or reach customer support.

PhonePe said the system operates on a hybrid model combining on-device and cloud inferencing, while ensuring that personal or transactional data does not leave its environment.

Rahul Chari, Founder, Whole-time Director and CTO of PhonePe, said the launch marks a shift from purely utilitarian payment apps to more intuitive, user-centric experiences.

“Our vision is to make payments accessible to every Indian, and AI enables us to build an intelligent interface that anticipates what users need before they even go looking for it. Through our collaboration with Microsoft, we aim to simplify payments further by understanding intent, not just inputs,” Chari said.

Puneet Chandok, President, Microsoft India and South Asia, said the new feature reflects growing adoption of natural language interfaces across digital services in the country.

“Microsoft Foundry provides the underlying capabilities that help innovators like PhonePe build secure, scalable and human-centred products for millions. We’re committed to supporting India’s digital ecosystem with trusted AI that enables simpler and more meaningful customer experiences,” Chandok said.

PhonePe said the AI-powered search will be rolled out in phases to users across India.

The feature can be accessed via the Global Search Bar, Help Centre and the History tab on the PhonePe app.

UPI payments with biometric authentication

The announcement comes a day after PhonePe launched the biometric authentication for UPI payments for a faster and more seamless ‘one-touch’ payment experience for its users.

The new feature allows users to authorise transactions using their smartphone’s native security, such as fingerprint or facial recognition.

"With this launch, PhonePe becomes one of the first major payments players to bring this capability to market at scale," the company said.

The ‘one-touch’ approach leverages device-level biometric verification as a secure two-factor authentication layer for UPI transactions up to ₹5,000.

"Transactions exceeding this limit will continue to require UPI PIN authentication to ensure maximum security," it added.