Launch · Financial Services

PayU launches AI agent store and fraud protection

By Startup Enthusiast · 15 September 2026

What they do

PayU provides payment gateway solutions to online businesses across 100+ payment methods

It launches Agent HQ, an AI agent store for merchants, and Fraud Liability Protect for international card payments

Agent HQ is no-code and built into the dashboard; Policybazaar, Daily Objects, and Pinq Polka are early users

PayU launches Agent HQ, an AI agent store for Indian small and medium business (SMB) merchants.
Agent HQ lets merchants choose and deploy AI agents for tasks like discoverability, AI shopping agents, growth, payment operations, and conversational AI.
PayU also unveils Fraud Liability Protect (FLP) for merchants accepting international card payments at Global Fintech Fest 2026.
FLP combines AI/ML risk assessment, dynamic risk-based authentication, and fraud liability protection against unwarranted fraud chargebacks.
The Delhi High Court asks the RBI to mediate a dispute between PayU, YES Bank, ICICI Bank, other acquiring banks, and Visa over interchange reimbursement fee (IRF) claims.
The court directs parties to maintain status quo on past transaction claims and bars acquiring banks from further deductions from PayU's settlements during mediation.
The court restrains Visa from issuing final determinations on pending IRF claims concerning past transactions.
The court asks RBI to depute a senior officer to help parties reach resolution within 30 days; next hearing is October 27.

Industry reports say about 50% of search traffic is shifting to AI agents, and AI-referred shoppers convert up to 3x better.
PayU merchants using FLP see about 4-5% improvement in international card payment success rates.
An online travel merchant using FLP recorded 14% improvement in payment success rates and 83% reduction in fraud-to-sales ratio.
The IRF dispute involves claims of misclassification of merchant category codes (MCCs) by acquiring banks.

PayU provides payment gateway solutions to online businesses, enabling digital payments across 100+ methods (Credit Cards, Debit Cards, Net Banking, EMIs, pay-later, QR, UPI, Wallets).
PayU's platform powers 4.5 lakh+ merchants and 700M+ shoppers, and has processed Rs 7,800 billion in transaction volume.
Agent HQ is no-code, zero-integration, built into the PayU merchant dashboard; merchants hire an AI agent in a few clicks, set frequency, monitor via dashboard, and get outputs via email and WhatsApp.
Agent HQ outcomes include building an AI-ready growth engine (discoverable on Claude, ChatGPT, WhatsApp; custom conversational AI assistants) or running business efficiently (automate tasks like chargeback reconciliations, refund escalations, settlements).
Policybazaar, Daily Objects, and Pinq Polka are among merchants already using Agent HQ.
Zomato uses PayU's FLP solution.
PayU says it does not assign MCCs; it collects and verifies merchant business info and forwards to the acquiring bank, which independently assigns the code.

The Delhi High Court has asked the RBI to mediate the IRF dispute, with a resolution expected within 30 days.
The next court hearing is scheduled for October 27.

Product: Payments platform providing payment processing, checkout solutions, fraud management, and merchant services including UPI, cards, and wallets
Customers: Merchants and e-commerce businesses ranging from SMBs to enterprise seeking payment infrastructure and services
How it makes money: Payment processing with transaction fees, subscription services for merchant tools, and technology licensing
What sets it apart: Pan-India merchant network, AI-powered fraud protection, accessibility-first checkout, and integration with emerging channels like ChatGPT