How to integrate Loyverse MCP with Pydantic AI

This guide walks you through connecting Loyverse to Pydantic AI using the Composio tool router. By the end, you'll have a working Loyverse agent that can add a new supplier for fresh produce, remove unused category from your inventory, fetch details for a specific employee through natural language commands. This guide will help you understand how to give your Pydantic AI agent real control over a Loyverse account through Composio's Loyverse MCP server. Before we dive in, let's take a quick look at the key ideas and tools involved.

Loyverse logoLoyverse
Api Key

Loyverse is a point-of-sale (POS) platform for small businesses, offering tools for sales, inventory, and customer loyalty. It helps streamline retail operations and boost customer engagement.

58 Tools

Introduction

This guide walks you through connecting Loyverse to Pydantic AI using the Composio tool router. By the end, you'll have a working Loyverse agent that can add a new supplier for fresh produce, remove unused category from your inventory, fetch details for a specific employee through natural language commands.

This guide will help you understand how to give your Pydantic AI agent real control over a Loyverse account through Composio's Loyverse MCP server.

Before we dive in, let's take a quick look at the key ideas and tools involved.

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TL;DR

Here's what you'll learn:
  • How to set up your Composio API key and User ID
  • How to create a Composio Tool Router session for Loyverse
  • How to attach an MCP Server to a Pydantic AI agent
  • How to stream responses and maintain chat history
  • How to build a simple REPL-style chat interface to test your Loyverse workflows

What is Pydantic AI?

Pydantic AI is a Python framework for building AI agents with strong typing and validation. It leverages Pydantic's data validation capabilities to create robust, type-safe AI applications.

Key features include:

  • Type Safety: Built on Pydantic for automatic data validation
  • MCP Support: Native support for Model Context Protocol servers
  • Streaming: Built-in support for streaming responses
  • Async First: Designed for async/await patterns

What is the Loyverse MCP server, and what's possible with it?

The Loyverse MCP server is an implementation of the Model Context Protocol that connects your AI agent and assistants like Claude, Cursor, etc directly to your Loyverse account. It provides structured and secure access to your retail management data, so your agent can perform actions like managing inventory categories, handling suppliers, retrieving employee info, and accessing payment types on your behalf.

  • Supplier management and automation: Easily create or delete suppliers, streamlining your purchase and vendor workflows without logging into Loyverse manually.
  • Category organization and clean-up: Fetch details of specific inventory categories or remove deprecated ones to keep your product catalog organized and up-to-date.
  • Employee and merchant insights: Retrieve detailed information about employees and your merchant account to support HR, payroll, or business analysis tasks.
  • Discount and payment method lookup: Instantly access details for discounts and payment types, making it simple to verify offers or payment options during sales operations.
  • Authentication and security integration: Fetch OpenID Connect details and JWKS keys, allowing your agent to manage secure authentication and integration workflows.

What is the Composio tool router, and how does it fit here?

What is Composio SDK?

Composio's Composio SDK helps agents find the right tools for a task at runtime. You can plug in multiple toolkits (like Gmail, HubSpot, and GitHub), and the agent will identify the relevant app and action to complete multi-step workflows. This can reduce token usage and improve the reliability of tool calls. Read more here: Getting started with Composio SDK

The tool router generates a secure MCP URL that your agents can access to perform actions.

How the Composio SDK works

The Composio SDK follows a three-phase workflow:

  1. Discovery: Searches for tools matching your task and returns relevant toolkits with their details.
  2. Authentication: Checks for active connections. If missing, creates an auth config and returns a connection URL via Auth Link.
  3. Execution: Executes the action using the authenticated connection.

Step-by-step Guide

Step by step09 STEPS
1

Prerequisites

Before starting, make sure you have:
  • Python 3.9 or higher
  • A Composio account with an active API key
  • Basic familiarity with Python and async programming
2

Getting API Keys for OpenAI and Composio

OpenAI API Key
  • Go to the OpenAI dashboard and create an API key. You'll need credits to use the models, or you can connect to another model provider.
  • Keep the API key safe.
Composio API Key
  • Log in to the Composio dashboard.
  • Navigate to your API settings and generate a new API key.
  • Store this key securely as you'll need it for authentication.
3

Install dependencies

bash
pip install composio pydantic-ai python-dotenv

Install the required libraries.

What's happening:

  • composio connects your agent to external SaaS tools like Loyverse
  • pydantic-ai lets you create structured AI agents with tool support
  • python-dotenv loads your environment variables securely from a .env file
4

Set up environment variables

bash
COMPOSIO_API_KEY=your_composio_api_key_here
USER_ID=your_user_id_here
OPENAI_API_KEY=your_openai_api_key

Create a .env file in your project root.

What's happening:

  • COMPOSIO_API_KEY authenticates your agent to Composio's API
  • USER_ID associates your session with your account for secure tool access
  • OPENAI_API_KEY to access OpenAI LLMs
5

Import dependencies

python
import asyncio
import os
from dotenv import load_dotenv
from composio import Composio
from pydantic_ai import Agent
from pydantic_ai.mcp import MCPServerStreamableHTTP

load_dotenv()
What's happening:
  • We load environment variables and import required modules
  • Composio manages connections to Loyverse
  • MCPServerStreamableHTTP connects to the Loyverse MCP server endpoint
  • Agent from Pydantic AI lets you define and run the AI assistant
6

Create a Tool Router Session

python
async def main():
    api_key = os.getenv("COMPOSIO_API_KEY")
    user_id = os.getenv("USER_ID")
    if not api_key or not user_id:
        raise RuntimeError("Set COMPOSIO_API_KEY and USER_ID in your environment")

    # Create a Composio Tool Router session for Loyverse
    composio = Composio(api_key=api_key)
    session = composio.create(
        user_id=user_id,
        toolkits=["loyverse"],
    )
    url = session.mcp.url
    if not url:
        raise ValueError("Composio session did not return an MCP URL")
What's happening:
  • We're creating a Tool Router session that gives your agent access to Loyverse tools
  • The create method takes the user ID and specifies which toolkits should be available
  • The returned session.mcp.url is the MCP server URL that your agent will use
7

Initialize the Pydantic AI Agent

python
# Attach the MCP server to a Pydantic AI Agent
loyverse_mcp = MCPServerStreamableHTTP(url, headers={"x-api-key": COMPOSIO_API_KEY})
agent = Agent(
    "openai:gpt-5",
    toolsets=[loyverse_mcp],
    instructions=(
        "You are a Loyverse assistant. Use Loyverse tools to help users "
        "with their requests. Ask clarifying questions when needed."
    ),
)
What's happening:
  • The MCP client connects to the Loyverse endpoint
  • The agent uses GPT-5 to interpret user commands and perform Loyverse operations
  • The instructions field defines the agent's role and behavior
8

Build the chat interface

python
# Simple REPL with message history
history = []
print("Chat started! Type 'exit' or 'quit' to end.\n")
print("Try asking the agent to help you with Loyverse.\n")

while True:
    user_input = input("You: ").strip()
    if user_input.lower() in {"exit", "quit", "bye"}:
        print("\nGoodbye!")
        break
    if not user_input:
        continue

    print("\nAgent is thinking...\n", flush=True)

    async with agent.run_stream(user_input, message_history=history) as stream_result:
        collected_text = ""
        async for chunk in stream_result.stream_output():
            text_piece = None
            if isinstance(chunk, str):
                text_piece = chunk
            elif hasattr(chunk, "delta") and isinstance(chunk.delta, str):
                text_piece = chunk.delta
            elif hasattr(chunk, "text"):
                text_piece = chunk.text
            if text_piece:
                collected_text += text_piece
        result = stream_result

    print(f"Agent: {collected_text}\n")
    history = result.all_messages()
What's happening:
  • The agent reads input from the terminal and streams its response
  • Loyverse API calls happen automatically under the hood
  • The model keeps conversation history to maintain context across turns
9

Run the application

python
if __name__ == "__main__":
    asyncio.run(main())
What's happening:
  • The asyncio loop launches the agent and keeps it running until you exit

Complete Code

Here's the complete code to get you started with Loyverse and Pydantic AI:

python
import asyncio
import os
from dotenv import load_dotenv
from composio import Composio
from pydantic_ai import Agent
from pydantic_ai.mcp import MCPServerStreamableHTTP

load_dotenv()

async def main():
    api_key = os.getenv("COMPOSIO_API_KEY")
    user_id = os.getenv("USER_ID")
    if not api_key or not user_id:
        raise RuntimeError("Set COMPOSIO_API_KEY and USER_ID in your environment")

    # Create a Composio Tool Router session for Loyverse
    composio = Composio(api_key=api_key)
    session = composio.create(
        user_id=user_id,
        toolkits=["loyverse"],
    )
    url = session.mcp.url
    if not url:
        raise ValueError("Composio session did not return an MCP URL")

    # Attach the MCP server to a Pydantic AI Agent
    loyverse_mcp = MCPServerStreamableHTTP(url, headers={"x-api-key": COMPOSIO_API_KEY})
    agent = Agent(
        "openai:gpt-5",
        toolsets=[loyverse_mcp],
        instructions=(
            "You are a Loyverse assistant. Use Loyverse tools to help users "
            "with their requests. Ask clarifying questions when needed."
        ),
    )

    # Simple REPL with message history
    history = []
    print("Chat started! Type 'exit' or 'quit' to end.\n")
    print("Try asking the agent to help you with Loyverse.\n")

    while True:
        user_input = input("You: ").strip()
        if user_input.lower() in {"exit", "quit", "bye"}:
            print("\nGoodbye!")
            break
        if not user_input:
            continue

        print("\nAgent is thinking...\n", flush=True)

        async with agent.run_stream(user_input, message_history=history) as stream_result:
            collected_text = ""
            async for chunk in stream_result.stream_output():
                text_piece = None
                if isinstance(chunk, str):
                    text_piece = chunk
                elif hasattr(chunk, "delta") and isinstance(chunk.delta, str):
                    text_piece = chunk.delta
                elif hasattr(chunk, "text"):
                    text_piece = chunk.text
                if text_piece:
                    collected_text += text_piece
            result = stream_result

        print(f"Agent: {collected_text}\n")
        history = result.all_messages()

if __name__ == "__main__":
    asyncio.run(main())

Conclusion

You've built a Pydantic AI agent that can interact with Loyverse through Composio's Tool Router. With this setup, your agent can perform real Loyverse actions through natural language. You can extend this further by:
  • Adding other toolkits like Gmail, HubSpot, or Salesforce
  • Building a web-based chat interface around this agent
  • Using multiple MCP endpoints to enable cross-app workflows (for example, Gmail + Loyverse for workflow automation)
This architecture makes your AI agent "agent-native", able to securely use APIs in a unified, composable way without custom integrations.
TOOLS

Supported Tools

Every Loyverse action and event your agent gets out of the box.

Create or Update Category

Tool to create a new category or update an existing one.

Create or Update Customer

Tool to create a new customer or update an existing one in Loyverse.

Create or Update Discount

Tool to create or update a single discount.

Create or Update Item

Tool to create a new item or update an existing one in Loyverse inventory.

Create or Update Modifier

Tool to create or update a single modifier with options.

Create or Update POS Device

Tool to create a new POS device or update an existing one.

Create or Update Supplier

Tool to create a new supplier or update an existing one in Loyverse.

Create or Update Tax

Tool to create or update a single tax.

Create or Update Variant

Tool to create or update a single item variant in Loyverse.

Create or Update Webhook

Tool to create a new webhook subscription or update an existing one in Loyverse.

Create Receipt

Tool to create a sales receipt with line items and payments.

Create Refund

Tool to create a refund receipt for a sales receipt.

Delete Category

Tool to delete a single category by ID.

Delete Customer

Tool to delete a single customer by their ID.

Delete Discount

Tool to delete a single discount by ID.

Delete Item

Tool to delete a single item by ID.

Delete Item Image

Tool to delete a single image from an item.

Delete Modifier

Tool to delete a single modifier by its ID.

Delete POS Device

Tool to delete a single POS device by its ID.

Delete Supplier

Tool to delete a specific supplier by ID.

Delete Tax

Tool to delete a single tax by its ID.

Delete Variant

Tool to delete a single item variant by its ID.

Delete Webhook

Tool to delete a single webhook by its ID.

Get Category

Tool to get a single category by ID.

Get Customer

Tool to get a single customer by their ID.

Get Discount

Tool to get a single discount by ID.

Get Employee

Tool to get a single employee by ID.

Get Item

Tool to get a single item by ID including all its variants.

Get JWKS

Tool to fetch JSON Web Key Set for OpenID Connect.

Get Merchant Info

Tool to get merchant information.

Get Modifier

Tool to get a single modifier by ID.

Get OpenID Connect Discovery Document

Tool to retrieve the OpenID Connect discovery document.

Get Payment Type

Tool to get a single payment type by its ID.

Get POS Device

Tool to retrieve details of a specific POS device by its ID.

Get Receipt

Tool to retrieve a single receipt by its receipt number.

Get Store

Tool to retrieve details of a specific store by its ID.

Get Supplier

Tool to get a single supplier by their ID.

Get Tax

Tool to get a single tax by ID.

Get Variant

Tool to get a single item variant by its ID.

Get Webhook

Tool to get a single webhook by its ID.

List Categories

Tool to list categories with optional filtering and pagination.

List Customers

Tool to get a list of customers.

List Discounts

Tool to list discounts.

List Employees (Advanced)

Tool to get a list of employees with advanced filtering options.

List Inventory

Retrieves inventory levels for item variants across stores in the Loyverse system.

List Items

Retrieves a paginated list of items (products) from the Loyverse inventory.

List Modifiers (Enhanced)

Tool to get a list of modifiers sorted by created_at in descending order.

List Payment Types

Tool to list payment types.

List POS Devices

Tool to get a list of POS devices sorted by creation date in descending order.

List Receipts

Tool to retrieve a list of receipts.

List Shifts

Tool to list shifts.

List Stores

Tool to get a list of stores sorted by creation date (newest first).

List Suppliers

Tool to retrieve a list of suppliers.

List Taxes

Tool to get a list of taxes sorted by creation date (newest first).

List Variants

Tool to get a list of item variants sorted by creation date (newest first).

List Webhooks

Tool to list webhooks.

Update Inventory

Tool to batch update inventory levels for item variants at specific stores.

Upload Item Image

Tool to upload a single image for an item.

FAQ

Frequently asked questions

With a standalone Loyverse MCP server, the agents and LLMs can only access a fixed set of Loyverse tools tied to that server. However, with the Composio Tool Router, agents can dynamically load tools from Loyverse and many other apps based on the task at hand, all through a single MCP endpoint.

Yes, you can. Pydantic AI fully supports MCP integration. You get structured tool calling, message history handling, and model orchestration while Tool Router takes care of discovering and serving the right Loyverse tools.

Yes, absolutely. You can configure which Loyverse scopes and actions are allowed when connecting your account to Composio. You can also bring your own OAuth credentials or API configuration so you keep full control over what the agent can do.

All sensitive data such as tokens, keys, and configuration is fully encrypted at rest and in transit. Composio is SOC 2 Type 2 compliant and follows strict security practices so your Loyverse data and credentials are handled as safely as possible.

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