Key Highlights:
- PhonePe launches an AI-powered natural language search feature built on Microsoft Foundry.
- Users can navigate, pay, and track transactions using simple voice or text commands.
- The feature uses intent-based routing instead of traditional menu navigation.
- PhonePe confirms a privacy-first approach, with no personal or transactional data leaving its ecosystem.
PhonePe has launched an AI-powered natural language search feature that allows users to complete tasks using simple voice or text commands. The feature is built on Microsoft Foundry and replaces traditional menu-based navigation with intent-driven interactions.
Users can now navigate the app, make payments, and track transactions by typing or speaking what they want to do. The company says the feature will roll out in phases across India.
How does PhonePe’s natural language search work?
The new search experience understands what a user wants to do, not just what they type. Instead of browsing through menus, users can issue direct commands.
For example:
- “Pay Hemanth 20 rupees” opens the payment screen with the recipient pre-selected.
- “Recharge FASTag” takes users directly to the FASTag recharge page.
- “Gold price” shows relevant gold-related information within the app.
PhonePe says the system routes users based on intent. This makes the experience faster and reduces friction during everyday actions.
Why PhonePe is moving away from menu-based navigation
Traditional payment apps rely heavily on icons, tabs, and nested menus. PhonePe says this approach was designed for transactions, not people.
Rahul Chari, Founder, Whole-time Director and CTO of PhonePe, said the launch marks a shift toward more intelligent platforms.
“For years, payment apps have been built as utilitarian tools, optimised for transactions and not people,” he said. “This launch is the first step towards changing that.”
The company believes natural language interfaces make digital payments more accessible, especially for users who may struggle with complex app layouts.
What powers the AI behind PhonePe’s new feature?
The feature is built using Microsoft Foundry, which provides the underlying AI infrastructure. According to PhonePe, the system uses a hybrid approach.
Some processing happens on the device. Other tasks use cloud inferencing. PhonePe says this setup improves speed while maintaining control over sensitive data.
Importantly, the company says no personal or transactional data leaves the PhonePe environment. This addresses growing concerns around privacy and AI-driven platforms.
Microsoft’s role in PhonePe’s AI push
Puneet Chandok, President, Microsoft India and South Asia, said the collaboration reflects a broader shift in how Indians interact with digital services.
“As more Indians embrace natural language to interact with digital services, PhonePe’s new AI-powered experience is a strong step toward more intuitive and accessible digital payments,” he said.
Microsoft Foundry, he added, is designed to help companies build secure and scalable AI-driven experiences for large user bases.
Where can users access the new AI search feature?
PhonePe says users can access the AI-powered natural language search through multiple entry points:
- The Global Search Bar
- The Help Center
- The History tab
This ensures users can discover the feature while performing different actions inside the app.
What this means for India’s digital payments ecosystem
PhonePe was founded in 2016 and is one of India’s largest digital payments platforms. As of September 30, 2025, it had over 65 crore registered users and more than 4.7 crore merchant acceptance points.
By introducing conversational AI, PhonePe is aligning with a broader industry trend. Apps are increasingly designed to understand user intent rather than rely on fixed workflows.
The company says this approach could reduce friction, improve accessibility, and simplify daily payment tasks for millions of users.
What comes next for PhonePe?
PhonePe says the rollout will happen in phases across India. The company has not shared a detailed timeline or language support roadmap yet.
Still, the launch signals a clear direction. PhonePe is positioning AI as a core layer of its user experience, not an add-on feature.
As the feature expands, PhonePe aims to make payments feel less like a process and more like a conversation. The company says this is just the beginning of its AI journey.
Conclusion
With this launch, PhonePe is using AI-powered natural language search to change how users interact with payment apps. By focusing on intent, privacy, and accessibility, PhonePe is moving beyond traditional menus toward a more conversational payment experience.
