Pine Labs Launches P3P Protocol for AI-Driven Autonomous Payments in India
Pine Labs introduced its new Payment Protocol (P3P) in India on Thursday. This innovative system allows AI agents to complete UPI transactions autonomously.
The protocol removes the need for manual authentication during payments. It builds directly on the existing UPI mandate framework. As a result, users now set spending rules once. After that, AI agents handle purchases on their behalf within those limits.
Current UPI infrastructure works well for human-initiated payments. However, it creates challenges for agentic commerce. In this emerging field, AI systems browse products, compare prices, negotiate deals, and finish transactions independently. Pine Labs designed P3P to solve these bottlenecks.
The new system extends UPI’s mandate-based architecture. It also uses established features such as One Time Mandates (OTM), Reserve Pay, and Single Block Multiple Debit (SBMD). Users complete a single authorisation process upfront. Then, AI agents execute payments automatically without repeated checks.
Pine Labs partnered with Grantex to strengthen security. The collaboration provides identity verification, delegated authorisation, spending controls, compliance checks, and clear audit trails. In addition, P3P incorporates the HTTP 402 standard. This web protocol supports machine-readable payment requests and smooth agent-to-agent interactions.
Users maintain full control throughout the process. They define spending limits, verify AI agent identities, review past transactions, and revoke permissions anytime.
The P3P system is already live in production. Several companies have started using it. For example, digital gold platform Gullak has fully integrated the protocol. Electronics retailer Vijay Sales is running a successful proof-of-concept. Pine Labs currently focuses on UPI. At the same time, the company works with major card networks to expand support for card transactions.
Industry experts project strong growth ahead. The global agentic commerce market may reach $65.47 billion (roughly Rs. 6.22 lakh crore) by 2033. Moreover, India stands ready to lead this expansion. Its robust UPI infrastructure gives the country a clear advantage in autonomous commerce.
This launch marks an important step toward agentic AI in everyday finance. It opens new possibilities for seamless, intelligent transactions across retail, investments, and services.