Pine Labs launches AI payment protocol for agent-led UPI transactions

By Puja Sharma

Pine Labs has launched the Pine Labs Payment Protocol (P3P), a payment protocol built on UPI that enables AI agents to initiate and complete transactions through pre-authorised mandates.

UPI currently requires user authentication for each transaction, which creates challenges for agent-led commerce models where AI systems act on behalf of users. P3P extends existing UPI mandate frameworks, allowing users to provide upfront authorisation while enabling AI agents to execute transactions within predefined parameters.

The protocol combines UPI mandate infrastructure with Grantex’s identity and authorisation capabilities and uses HTTP 402 standards for machine-readable payment requests. The framework includes spending controls, audit trails, and mandate management features.

Digital gold savings platform Gullak is among the first companies to implement P3P. Under the model, users can set predefined purchase conditions and authorise transactions through a UPI mandate, allowing AI agents to execute purchases when those conditions are met.

Manthan Shah, Co-founder of Gullak, said the integration enables users to automate gold purchases based on predefined rules, allowing transactions to be executed when specified conditions are met.

Amrish Rau, CEO of Pine Labs, said, “We have always built by asking what existing infrastructure already makes possible — then building the layer that was missing. In India, UPI’s mandate framework was already architected for agentic commerce. P3P is that layer. An agent securing a flash sale the moment it goes live. A down payment locked in before inventory disappears. A savings trigger at the right price. These are new behaviours, native to how India transacts. Pine Labs is building the commerce infrastructure for that world. Not catching up to anyone. Building ahead.”

According to Pine Labs, the protocol is intended to support agent-to-agent transactions while maintaining user controls, spending limits, and compliance requirements. The company said the framework could be applied across use cases, including automated purchases, savings products, and other AI-driven commerce scenarios.