Mastercard Launches Agent Pay for AI Payment Transactions
Mastercard has launched Agent Pay, a new payment infrastructure designed specifically for agentic commerce—where autonomous AI assistants execute transactions on behalf of users.
The Agentic Payments Program represents a strategic move by the payments network to establish infrastructure for this emerging commerce category.
The system builds upon Mastercard's existing tokenisation capabilities, creating what the company calls "Mastercard Agentic Tokens."
These specialised tokens extend the same technology that currently powers contactless payments, secure card storage, and Mastercard Payment Passkeys.
According to Mastercard, Agent Pay will connect with major AI platforms beginning with Microsoft, the enterprise software and cloud computing firm.
The collaboration will integrate Mastercard's payment rails with Microsoft's Azure OpenAI Service and Copilot Studio, establishing pathways for AI systems to complete purchases within conversational interfaces.
Enterprise Applications and Business Use Cases
For corporate users, the technology aims to streamline procurement processes. Mastercard describes scenarios where AI agents could manage international supplier relationships, negotiate payment terms and execute cross-border transactions using virtual corporate cards.
This capability addresses pain points in business-to-business commerce, with IBM's watsonx Orchestrate platform serving as an initial integration partner.
The watsonx system, an enterprise AI product, will incorporate Agent Pay functionality to automate financial workflows.
Payment processors, including Braintree and Checkout.com, will enhance their existing merchant tokenisation systems to support AI-initiated transactions across their networks.
This approach leverages established infrastructure rather than requiring merchants to implement entirely new payment mechanisms.
“Mastercard is transforming the way the world pays by anticipating consumer needs on the horizon,” says Jorn Lambert, Chief Product Officer at Mastercard.
“The launch of Agent Pay marks our initial steps in redefining commerce in the AI era.”
Security Framework and Consumer Protections
The system establishes a clear governance structure requiring AI agents to be registered and verified before executing transactions.
Mastercard emphasises that consumers will maintain complete control over what purchases agents can make on their behalf, with transparency throughout the payment chain.
For financial institutions, Agent Pay provides visibility into these emerging transaction types while maintaining their position within payment flows.
Card issuers will receive enhanced information when transactions are initiated by AI systems rather than directly by customers.
Consumer applications of the technology include AI shopping assistants that recommend products based on personal preferences and contextual information.
“Recognising the seismic implications of this evolution, we are keen to collaborate with industry players to advance the standards for agentic payments”
In one example provided by Mastercard, an AI agent could suggest outfits for a birthday celebration by analysing style preferences, venue information and weather forecasts, then complete the purchase using the consumer's preferred payment method.
Retail merchants can leverage the system to identify customers consistently across shopping sessions, enabling personalised recommendations, delivery options, rewards and discounts.
This addresses fragmentation challenges in digital commerce environments.
The security architecture incorporates Mastercard's cyber and authentication capabilities, including on-device biometrics for transaction verification and processes to help consumers identify unfamiliar agent-initiated purchases.
Industry Standards Development
Mastercard plans to collaborate with industry partners to establish technical standards for agentic payment systems.
The company specifically mentions applying the Model Context Protocol to Secure Remote Commerce—a framework that would help distinguish trusted AI agents from potential bad actors using similar technology.
The company frames Agent Pay as its first step in addressing the emerging agentic commerce landscape, with a commitment to "ongoing, responsible innovation" as the technology evolves.
“Recognising the seismic implications of this evolution, we are keen to collaborate with industry players to advance the standards for agentic payments,” Jon explains. “This lays the foundation for scale and builds trust in agentic commerce.”
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