Mastercard Unveils Agent Pay to Enable Secure AI-Driven Transactions

In a major stride toward the future of digital commerce, Mastercard has announced the launch of Agent Pay—a new infrastructure designed specifically to support agentic commerce, where autonomous AI assistants execute transactions on behalf of users, as highlighted in The Fintech Magazine. 

This innovation marks Mastercard’s entry into the world of AI-driven payments, with the goal of shaping a secure, scalable foundation for this rapidly emerging domain.

A New Era of AI Payments

Agent Pay is built upon Mastercard’s robust tokenisation technology, giving rise to the new “Mastercard Agentic Tokens.” These specialised tokens extend the same security framework that powers contactless payments, stored card credentials, and Mastercard Payment Passkeys.

According to Mastercard, the system will initially integrate with major AI platforms, starting with Microsoft. Through this partnership, Mastercard’s payment rails will be embedded into Microsoft’s Azure OpenAI Service and Copilot Studio, enabling AI systems to initiate and complete purchases within conversational user interfaces.

Business Applications and AI Integration

The implications for enterprise users are vast. Mastercard envisions a future where AI agents autonomously manage procurement, negotiate payment terms with international suppliers, and complete cross-border transactions using virtual corporate cards.

This functionality will be initially implemented through IBM’s watsonx Orchestrate, an enterprise AI solution that will incorporate Agent Pay to streamline financial workflows.

Payment platforms like Braintree and Checkout.com will also adapt their merchant tokenisation infrastructure to support these AI-initiated transactions—minimising disruption by building on existing systems. “Mastercard is transforming the way the world pays by anticipating consumer needs on the horizon,” — Jorn Lambert, Chief Product Officer, Mastercard: “The launch of Agent Pay marks our initial steps in redefining commerce in the AI era.”

Strong Governance and Consumer Protection

Agent Pay introduces a comprehensive governance framework, requiring AI agents to be registered and verified before they can conduct transactions. Mastercard underlines that users will retain full control over what purchases agents can make, supported by transparent reporting throughout the transaction lifecycle.

Financial institutions will benefit from greater insight into AI-initiated payments while continuing to operate within the established payment flow. This visibility ensures that card issuers can differentiate between traditional and AI-driven purchases.

On the consumer front, use cases include AI shopping assistants that suggest products based on style, context, and preference—then complete the purchase using stored payment credentials. Mastercard offers a practical scenario: an AI assistant recommending outfits for a birthday party based on user style, weather, and venue, before placing the order autonomously.

Retailers, too, will benefit from improved personalisation capabilities, using the system to recognise returning customers and deliver tailored rewards, delivery options, and discounts.

Building the Future of Agentic Commerce

Mastercard’s Agent Pay is underpinned by advanced cybersecurity and authentication protocols, including on-device biometrics to confirm transactions and identify potentially fraudulent agent activity. This provides an extra layer of consumer assurance in a landscape where AI autonomy is increasing.

Looking ahead, Mastercard aims to collaborate with industry partners to develop technical standards for agentic payments. This includes applying the Model Context Protocol to Secure Remote Commerce, a move designed to differentiate between verified AI agents and potential threat actors. “Recognising the seismic implications of this evolution, we are keen to collaborate with industry players to advance the standards for agentic payments,” — Jorn Lambert, Chief Product Officer, Mastercard: “This lays the foundation for scale and builds trust in agentic commerce.”

With Agent Pay, Mastercard is positioning itself at the forefront of AI commerce, driving what it calls a vision of “ongoing, responsible innovation” to meet the demands of the AI economy.