How to integrate Razorpay MCP with Pydantic AI

This guide walks you through connecting Razorpay to Pydantic AI 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 Pydantic AI 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 Pydantic AI 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 Pydantic AI 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

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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 Razorpay
  • 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 Razorpay 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 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 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 Razorpay
  • 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 Razorpay
  • MCPServerStreamableHTTP connects to the Razorpay 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 Razorpay
    composio = Composio(api_key=api_key)
    session = composio.create(
        user_id=user_id,
        toolkits=["razorpay"],
    )
    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 Razorpay 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
razorpay_mcp = MCPServerStreamableHTTP(url, headers={"x-api-key": COMPOSIO_API_KEY})
agent = Agent(
    "openai:gpt-5",
    toolsets=[razorpay_mcp],
    instructions=(
        "You are a Razorpay assistant. Use Razorpay tools to help users "
        "with their requests. Ask clarifying questions when needed."
    ),
)
What's happening:
  • The MCP client connects to the Razorpay endpoint
  • The agent uses GPT-5 to interpret user commands and perform Razorpay 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 Razorpay.\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
  • Razorpay 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 Razorpay 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 Razorpay
    composio = Composio(api_key=api_key)
    session = composio.create(
        user_id=user_id,
        toolkits=["razorpay"],
    )
    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
    razorpay_mcp = MCPServerStreamableHTTP(url, headers={"x-api-key": COMPOSIO_API_KEY})
    agent = Agent(
        "openai:gpt-5",
        toolsets=[razorpay_mcp],
        instructions=(
            "You are a Razorpay assistant. Use Razorpay 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 Razorpay.\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 Razorpay through Composio's Tool Router. With this setup, your agent can perform real Razorpay 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 + Razorpay 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 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

Vercel AI SDK logo

Vercel AI SDK

Use Razorpay MCP with Vercel AI SDK

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. 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 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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