How to integrate Razorpay MCP with Vercel AI SDK v6

This guide walks you through connecting Razorpay to Vercel AI SDK v6 using the Composio tool router. By the end, you'll have a working Razorpay agent that can list recent razorpay payment failures, create payment link for invoice, fetch refund status for customer through natural language commands. This guide will help you understand how to give your Vercel AI SDK agent real control over a Razorpay account through Composio's Razorpay MCP server. Before we dive in, let's take a quick look at the key ideas and tools involved.

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Razorpay is a payment gateway and financial services platform for Indian businesses. It helps companies accept payments, manage refunds, send invoices, and run payouts.

42 Tools

Introduction

This guide walks you through connecting Razorpay to Vercel AI SDK v6 using the Composio tool router. By the end, you'll have a working Razorpay agent that can list recent razorpay payment failures, create payment link for invoice, fetch refund status for customer through natural language commands.

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

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

Also integrate Razorpay with

OpenAI Agents SDKClaude Agent SDKClaude CodeClaude CoworkCodexOpenClawHermesCLIGoogle ADKLangChainMastra AILlamaIndexCrewAI

TL;DR

Here's what you'll learn:
  • How to set up and configure a Vercel AI SDK agent with Razorpay integration
  • Using Composio's Tool Router to dynamically load and access Razorpay tools
  • Creating an MCP client connection using HTTP transport
  • Building an interactive CLI chat interface with conversation history management
  • Handling tool calls and results within the Vercel AI SDK framework

What is Vercel AI SDK?

The Vercel AI SDK is a TypeScript library for building AI-powered applications. It provides tools for creating agents that can use external services and maintain conversation state.

Key features include:

  • streamText: Core function for streaming responses with real-time tool support
  • MCP Client: Built-in support for Model Context Protocol via @ai-sdk/mcp
  • Step Counting: Control multi-step tool execution with stopWhen: stepCountIs()
  • OpenAI Provider: Native integration with OpenAI models

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

The Razorpay MCP server is an implementation of the Model Context Protocol that connects your AI agent and assistants like Claude, Cursor, etc directly to your Razorpay account. It provides structured and secure access to your payments, orders, customers, invoices, payment links, settlements, and disputes, so your agent can collect payments, manage billing, review transactions, reconcile settlements, and monitor disputes on your behalf.

  • Payment collection and tracking: Have your agent create orders and payment links, review incoming payments, and cancel payment links that are no longer needed.
  • Customer and payment method management: Let the agent create customers, retrieve customer records, and review their saved payment methods.
  • Invoice and item management: Direct your agent to create billing items and invoices, update draft invoices, issue them to customers, and resend invoice notifications by email or SMS.
  • Transaction and settlement review: Instruct your agent to review orders, payments, and invoices, or retrieve settlement reconciliation reports for a specific date or month.
  • Dispute monitoring: Have your agent list payment disputes so your team can review and follow up on contested transactions.

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 you begin, make sure you have:
  • Node.js and npm installed
  • A Composio account with API key
  • An OpenAI API key
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 required dependencies

bash
npm install @ai-sdk/openai @ai-sdk/mcp @composio/core ai dotenv

First, install the necessary packages for your project.

What you're installing:

  • @ai-sdk/openai: Vercel AI SDK's OpenAI provider
  • @ai-sdk/mcp: MCP client for Vercel AI SDK
  • @composio/core: Composio SDK for tool integration
  • ai: Core Vercel AI SDK
  • dotenv: Environment variable management
4

Set up environment variables

bash
OPENAI_API_KEY=your_openai_api_key_here
COMPOSIO_API_KEY=your_composio_api_key_here
COMPOSIO_USER_ID=your_user_id_here

Create a .env file in your project root.

What's needed:

  • OPENAI_API_KEY: Your OpenAI API key for GPT model access
  • COMPOSIO_API_KEY: Your Composio API key for tool access
  • COMPOSIO_USER_ID: A unique identifier for the user session
5

Import required modules and validate environment

typescript
import "dotenv/config";
import { openai } from "@ai-sdk/openai";
import { Composio } from "@composio/core";
import * as readline from "readline";
import { streamText, type ModelMessage, stepCountIs } from "ai";
import { createMCPClient } from "@ai-sdk/mcp";

const composioAPIKey = process.env.COMPOSIO_API_KEY;
const composioUserID = process.env.COMPOSIO_USER_ID;

if (!process.env.OPENAI_API_KEY) throw new Error("OPENAI_API_KEY is not set");
if (!composioAPIKey) throw new Error("COMPOSIO_API_KEY is not set");
if (!composioUserID) throw new Error("COMPOSIO_USER_ID is not set");

const composio = new Composio({
  apiKey: composioAPIKey,
});
What's happening:
  • We're importing all necessary libraries including Vercel AI SDK's OpenAI provider and Composio
  • The dotenv/config import automatically loads environment variables
  • The MCP client import enables connection to Composio's tool server
6

Create Tool Router session and initialize MCP client

typescript
async function main() {
  // Create a tool router session for the user
  const session = await composio.create(composioUserID!, {
    toolkits: ["razorpay"],
  });

  const mcpUrl = session.mcp.url;
What's happening:
  • We're creating a Tool Router session that gives your agent access to Razorpay tools
  • The create method takes the user ID and specifies which toolkits should be available
  • The returned mcp object contains the URL and authentication headers needed to connect to the MCP server
  • This session provides access to all Razorpay-related tools through the MCP protocol
7

Connect to MCP server and retrieve tools

typescript
const mcpClient = await createMCPClient({
  transport: {
    type: "http",
    url: mcpUrl,
    headers: session.mcp.headers, // Authentication headers for the Composio MCP server
  },
});

const tools = await mcpClient.tools();
What's happening:
  • We're creating an MCP client that connects to our Composio Tool Router session via HTTP
  • The mcp.url provides the endpoint, and mcp.headers contains authentication credentials
  • The type: "http" is important - Composio requires HTTP transport
  • tools() retrieves all available Razorpay tools that the agent can use
8

Initialize conversation and CLI interface

typescript
let messages: ModelMessage[] = [];

console.log("Chat started! Type 'exit' or 'quit' to end the conversation.\n");
console.log(
  "Ask any questions related to razorpay, like summarize my last 5 emails, send an email, etc... :)))\n",
);

const rl = readline.createInterface({
  input: process.stdin,
  output: process.stdout,
  prompt: "> ",
});

rl.prompt();
What's happening:
  • We initialize an empty messages array to maintain conversation history
  • A readline interface is created to accept user input from the command line
  • Instructions are displayed to guide the user on how to interact with the agent
9

Handle user input and stream responses with real-time tool feedback

typescript
rl.on("line", async (userInput: string) => {
  const trimmedInput = userInput.trim();

  if (["exit", "quit", "bye"].includes(trimmedInput.toLowerCase())) {
    console.log("\nGoodbye!");
    rl.close();
    process.exit(0);
  }

  if (!trimmedInput) {
    rl.prompt();
    return;
  }

  messages.push({ role: "user", content: trimmedInput });
  console.log("\nAgent is thinking...\n");

  try {
    const stream = streamText({
      model: openai("gpt-5"),
      messages,
      tools,
      toolChoice: "auto",
      stopWhen: stepCountIs(10),
      onStepFinish: (step) => {
        for (const toolCall of step.toolCalls) {
          console.log(`[Using tool: ${toolCall.toolName}]`);
          }
          if (step.toolCalls.length > 0) {
            console.log(""); // Add space after tool calls
          }
        },
      });

      for await (const chunk of stream.textStream) {
        process.stdout.write(chunk);
      }

      console.log("\n\n---\n");

      // Get final result for message history
      const response = await stream.response;
      if (response?.messages?.length) {
        messages.push(...response.messages);
      }
    } catch (error) {
      console.error("\nAn error occurred while talking to the agent:");
      console.error(error);
      console.log(
        "\nYou can try again or restart the app if it keeps happening.\n",
      );
    } finally {
      rl.prompt();
    }
  });

  rl.on("close", async () => {
    await mcpClient.close();
    console.log("\n👋 Session ended.");
    process.exit(0);
  });
}

main().catch((err) => {
  console.error("Fatal error:", err);
  process.exit(1);
});
What's happening:
  • We use streamText instead of generateText to stream responses in real-time
  • toolChoice: "auto" allows the model to decide when to use Razorpay tools
  • stopWhen: stepCountIs(10) allows up to 10 steps for complex multi-tool operations
  • onStepFinish callback displays which tools are being used in real-time
  • We iterate through the text stream to create a typewriter effect as the agent responds
  • The complete response is added to conversation history to maintain context
  • Errors are caught and displayed with helpful retry suggestions

Complete Code

Here's the complete code to get you started with Razorpay and Vercel AI SDK:

typescript
import "dotenv/config";
import { openai } from "@ai-sdk/openai";
import { Composio } from "@composio/core";
import * as readline from "readline";
import { streamText, type ModelMessage, stepCountIs } from "ai";
import { createMCPClient } from "@ai-sdk/mcp";

const composioAPIKey = process.env.COMPOSIO_API_KEY;
const composioUserID = process.env.COMPOSIO_USER_ID;

if (!process.env.OPENAI_API_KEY) throw new Error("OPENAI_API_KEY is not set");
if (!composioAPIKey) throw new Error("COMPOSIO_API_KEY is not set");
if (!composioUserID) throw new Error("COMPOSIO_USER_ID is not set");

const composio = new Composio({
  apiKey: composioAPIKey,
});

async function main() {
  // Create a tool router session for the user
  const session = await composio.create(composioUserID!, {
    toolkits: ["razorpay"],
  });

  const mcpUrl = session.mcp.url;

  const mcpClient = await createMCPClient({
    transport: {
      type: "http",
      url: mcpUrl,
      headers: session.mcp.headers, // Authentication headers for the Composio MCP server
    },
  });

  const tools = await mcpClient.tools();

  let messages: ModelMessage[] = [];

  console.log("Chat started! Type 'exit' or 'quit' to end the conversation.\n");
  console.log(
    "Ask any questions related to razorpay, like summarize my last 5 emails, send an email, etc... :)))\n",
  );

  const rl = readline.createInterface({
    input: process.stdin,
    output: process.stdout,
    prompt: "> ",
  });

  rl.prompt();

  rl.on("line", async (userInput: string) => {
    const trimmedInput = userInput.trim();

    if (["exit", "quit", "bye"].includes(trimmedInput.toLowerCase())) {
      console.log("\nGoodbye!");
      rl.close();
      process.exit(0);
    }

    if (!trimmedInput) {
      rl.prompt();
      return;
    }

    messages.push({ role: "user", content: trimmedInput });
    console.log("\nAgent is thinking...\n");

    try {
      const stream = streamText({
        model: openai("gpt-5"),
        messages,
        tools,
        toolChoice: "auto",
        stopWhen: stepCountIs(10),
        onStepFinish: (step) => {
          for (const toolCall of step.toolCalls) {
            console.log(`[Using tool: ${toolCall.toolName}]`);
          }
          if (step.toolCalls.length > 0) {
            console.log(""); // Add space after tool calls
          }
        },
      });

      for await (const chunk of stream.textStream) {
        process.stdout.write(chunk);
      }

      console.log("\n\n---\n");

      // Get final result for message history
      const response = await stream.response;
      if (response?.messages?.length) {
        messages.push(...response.messages);
      }
    } catch (error) {
      console.error("\nAn error occurred while talking to the agent:");
      console.error(error);
      console.log(
        "\nYou can try again or restart the app if it keeps happening.\n",
      );
    } finally {
      rl.prompt();
    }
  });

  rl.on("close", async () => {
    await mcpClient.close();
    console.log("\n👋 Session ended.");
    process.exit(0);
  });
}

main().catch((err) => {
  console.error("Fatal error:", err);
  process.exit(1);
});

Conclusion

You've successfully built a Razorpay agent using the Vercel AI SDK with streaming capabilities! This implementation provides a powerful foundation for building AI applications with natural language interfaces and real-time feedback.

Key features of this implementation:

  • Real-time streaming responses for a better user experience with typewriter effect
  • Live tool execution feedback showing which tools are being used as the agent works
  • Dynamic tool loading through Composio's Tool Router with secure authentication
  • Multi-step tool execution with configurable step limits (up to 10 steps)
  • Comprehensive error handling for robust agent execution
  • Conversation history maintenance for context-aware responses

You can extend this further by adding custom error handling, implementing specific business logic, or integrating additional Composio toolkits to create multi-app workflows.
TOOLS

Supported Tools

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

Cancel Invoice

Tool to cancel an existing Razorpay invoice.

Cancel Payment Link

Tool to cancel a specific payment link.

Create an Order

Tool to create a Razorpay order with specified amount and currency.

Create Contact

Tool to create a contact for payouts in RazorpayX.

Create Customer

Tool to create a new customer in Razorpay.

Create an Invoice

Tool to create an invoice for billing customers.

Create Item

Tool to create an item that can be used in Razorpay invoices.

Create Payment Link

Tool to create a payment link for collecting payments via a shareable URL.

Delete Invoice

Tool to delete an invoice in Razorpay.

Delete item

Tool to delete an existing item from Razorpay.

Fetch All Customers

Tool to retrieve a paginated list of all customers from Razorpay.

Fetch All Invoices

Tool to fetch all invoices with pagination and filtering support.

Fetch All Payment Links

Tool to fetch all payment links with pagination and filtering support.

Fetch All Payments

Tool to retrieve all payments from your Razorpay account with pagination and time filtering support.

Fetch all refunds for a payment

Tool to retrieve all refunds for a specific payment using the Razorpay API.

Fetch a Payment Link

Tool to retrieve details of a specific payment link by its ID.

Fetch Invoice by ID

Tool to fetch a specific invoice by its ID from Razorpay.

Fetch All Orders

Tool to retrieve a paginated list of all orders from Razorpay.

Fetch Order by ID

Tool to fetch details of a specific Razorpay order using its order ID.

Fetch payments by order

Tool to fetch all payments made for a particular order.

Fetch All Refunds

Tool to retrieve all refunds created by you using the Razorpay API.

Get Contact

Tool to retrieve details of a specific contact by ID in RazorpayX.

Retrieve Customer

Tool to retrieve details of a specific customer by their ID.

Get Fund Account

Tool to retrieve details of a specific fund account by its ID.

Get Item

Tool to retrieve complete details of a specific Razorpay item by its ID.

Get Settlement Reconciliation Report

Tool to fetch settlement reconciliation report for a specific date or month from Razorpay.

Get Transfer Reversals

Tool to fetch all reversals for a specific transfer using the Razorpay Route API.

Issue an Invoice

Tool to issue a draft Razorpay invoice to send it to the customer.

List Customer Tokens

Tool to retrieve all tokens (saved payment methods) for a customer.

List Disputes

Tool to retrieve a list of all disputes with pagination support.

List Fund Accounts

Tool to retrieve a list of all fund accounts from RazorpayX with pagination support.

List Fund Validations

Tool to fetch all fund account validation transactions from RazorpayX with pagination support.

List Items

Tool to retrieve a list of all items from Razorpay with pagination support.

List Payment Downtimes

Tool to fetch all active payment method downtimes from Razorpay.

Notify Payment Link

Tool to send or resend notification for a payment link via SMS or email.

Send/Resend Invoice Notification

Tool to send or resend an invoice notification via email or SMS.

Update Contact

Tool to update an existing contact's details in RazorpayX.

Update Customer

Tool to update an existing customer's details in Razorpay.

Update Invoice

Tool to update an existing draft invoice in Razorpay.

Update Item

Tool to update an existing item's details in Razorpay.

Update Order

Tool to update an existing order in Razorpay.

Update payment link

Tool to update an existing payment link in Razorpay.

FRAMEWORKS

How to build Razorpay MCP Agent with another framework

OpenAI Agents SDK logo

OpenAI Agents SDK

Use Razorpay MCP with OpenAI Agents SDK

Claude Agent SDK logo

Claude Agent SDK

Use Razorpay MCP with Claude Agent SDK

Claude Code logo

Claude Code

Use Razorpay MCP with Claude Code

Claude Cowork logo

Claude Cowork

Use Razorpay MCP with Claude Cowork

Codex logo

Codex

Use Razorpay MCP with Codex

OpenClaw logo

OpenClaw

Use Razorpay MCP with OpenClaw

Hermes logo

Hermes

Use Razorpay MCP with Hermes

CLI logo

CLI

Use Razorpay MCP with CLI

Google ADK logo

Google ADK

Use Razorpay MCP with Google ADK

LangChain logo

LangChain

Use Razorpay MCP with LangChain

Mastra AI logo

Mastra AI

Use Razorpay MCP with Mastra AI

LlamaIndex logo

LlamaIndex

Use Razorpay MCP with LlamaIndex

CrewAI logo

CrewAI

Use Razorpay MCP with CrewAI

FAQ

Frequently asked questions

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

Yes, you can. Vercel AI SDK v6 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 Razorpay tools.

Yes, absolutely. You can configure which Razorpay 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 Razorpay data and credentials are handled as safely as possible.

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A lot of students tell us that the moment their connected tools start talking to each other inside Opennote feels almost magical. The agent just knows them, and it's immensely helped keep new users on the platform.

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