India's leading fintech companies are rapidly rolling out artificial intelligence (AI)-based products, but the technology is yet to become a meaningful revenue driver, at least not in the near term, according to Emkay Research, as cited by PTI.
The brokerage expects AI-led revenue generation in the fintech sector to become more visible from FY28 onwards, even as companies such as Paytm, PhonePe and Razorpay expand their use of AI across payments, lending, customer service and merchant operations.
AI Products Are Growing, But Revenue Still Elusive
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AI emerged as the dominant theme at the Global Fintech Fest 2026, with over 32% of the total sessions explicitly focused on AI or agentic AI, as Emkay Research said in a report following the event.
However, the brokerage noted that adoption and monetisation remain at an early stage. None of the companies covered in its report disclosed revenue generated from their newly launched AI products. "We expect AI-led revenue to be an FY28 and beyond story, with servicing and insight work showing up sooner," the brokerage said.
Paytm showcased an AI platform aimed at banks, lenders, insurers and small merchants, offering tools for customer service, sales, fraud assessment and marketing, while PhonePe demonstrated AI-powered search, transaction insights and merchant-focused tools.
Razorpay, meanwhile, showcased an AI account manager for small businesses and a proprietary payments model trained on around 3 trillion data points across four billion payments.
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Cost Savings May Come Before AI Revenue
The brokerage also indicated that for fintech companies, initially the benefits might come via internal efficiencies rather than direct monetisation.
The benefits might include lower servicing costs, better customer support, faster technology integration and other potential benefits. Whether these efficiencies lead to higher usage and incremental revenue should become clearer over the near to medium term.
The brokerage also highlighted increasing adoption of digital payments as UPI processed 24.51 billion transactions worth Rs 29.82 trillion in August 2026, while the Unified Lending Interface had more than 64 lenders and 136 data services.
Meanwhile, agentic payments face regulatory hurdles as the Unified Agent Protocol for small autonomous debits was still pending at the close of the fintech fest, according to the brokerage report, and it also emphasizes the need for human checkpoints in the process.
Thus, for investors, this assessment suggests that AI product launches should currently be viewed more as a sign of future ambition than immediate earnings potential. Proprietary data, distribution, and the ability to convert AI capabilities into higher usage are likely to determine which fintech companies eventually turn their AI investments into meaningful revenue growth.
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