PayU Launches AI‑Powered Fraud Liability Protect (FLP) Solution

PayU, described as India’s leading diversified fintech platform and backed by Prosus, unveiled its Fraud Liability Protect (FLP) solution at the Global Fintech Fest 2026 in Mumbai. The product is targeted at Indian merchants that accept cross‑border card payments, particularly in segments such as travel, online travel agencies, airlines, e‑commerce, quick commerce and food‑tech.

Core Capabilities

The FLP solution integrates three core capabilities: (i) an AI/ML‑driven risk assessment engine that evaluates each international card transaction against multiple transaction and behavioural signals; (ii) dynamic risk‑based authentication that applies frictionless processing for low‑risk payments while routing higher‑risk transactions through more stringent authentication steps; and (iii) fraud liability protection that shields merchants from eligible chargeback losses arising from both human‑initiated and AI‑enabled fraud.

Reported Performance Gains

According to PayU, merchants using the FLP solution have already observed an approximate 4‑5% improvement in international card payment success rates. A prominent online travel merchant recorded a 14% uplift in payment success and an 83% reduction in the fraud‑to‑sales ratio after adopting the solution. Zomato, a major Indian food‑ordering and delivery platform, also employs FLP to deliver a more reliable payment experience for higher‑risk international transactions.

Quote from Leadership

Manas Mishra, Chief Product Officer of PayU and Wibmo, stated that “Fraud protection should not come at the cost of payment acceptance, especially as Indian merchants scale across geographies. With scams becoming more sophisticated and harder to detect amid the rise of AI, PayU’s Fraud Liability Protect is designed to safeguard Indian merchants against both human‑initiated and AI‑enabled fraud.”

Integration and Reach

The FLP solution is built to integrate seamlessly with PayU Checkout, allowing merchants to adopt the protection without extensive technical changes. PayU currently serves over 4.5 lakh businesses, offering payment gateway services across more than 100 online payment methods, including credit cards, debit cards, net banking, EMIs, pay‑later, QR, UPI, and wallets. All PayU operations are regulated by the Reserve Bank of India.

Disclaimer

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