AI agents to start spending your money with Visa, Mastercard

AI shopping agents could soon begin spending your money using Visa and Mastercard networks, according to recent developments. Visa (V) and Mastercard (MA) have partnered with global fintech Ant International to establish a shared framework for identifying and trusting AI agents that manage purchases. This initiative, announced on September 10, aims to ensure that payment transactions continue to run through their respective networks even as AI agents take on more shopping responsibilities.

The collaboration between Visa, Mastercard, and Ant International will develop a shared Know Your Agent (KYA) framework. This system will verify the trustworthiness and authorization of AI agents before they process transactions. Visa currently operates the Trusted Agent Protocol, while Mastercard uses Verifiable Intent, and Ant International has developed the Agentic Mobile Protocol. The goal is to enable agents cleared on one network to be recognized on others, allowing for seamless and secure cross-network transactions.

According to market research by McKinsey, AI agents have the potential to handle between $3 trillion and $5 trillion of global consumer commerce by 2030. Ant International's chief innovation officer, Jiang-Ming Yang, emphasized the importance of interoperable trust between card and wallet networks for agentic commerce. Each network maintains its own approval processes, and the companies have not set a timeline or identified specific merchant pilots for this collaboration.

Visa and Mastercard operate the networks that connect banks, merchants, and payment systems, earning a small fee on each transaction. Currently, users' limited time for shopping restricts the number of transactions they can complete. With AI agents managing spending based on predefined rules, the volume of transactions could significantly increase. Both companies have invested heavily in fraud protection and identity verification tools, which are crucial as they explore the potential of AI-powered shopping.

The collaboration aligns with the companies' ongoing efforts to enhance their value-added services. Visa recently acquired fraud-detection firm BioCatch for $2.4 billion, a move driven by the rise in AI-powered scams. Mastercard's value-added services revenue grew by 20% year-over-year in the second quarter, reflecting a 18% increase on a currency-neutral basis.

The introduction of a shared KYA framework with Ant International provides Visa and Mastercard with access to markets where digital wallets are popular, such as much of Asia, where physical cards are less commonly used.

As of September 10, Visa's stock was trading near $367, down approximately 3.3% over five days, while Mastercard was at around $566, down about 4.3%. The framework could enable AI agents to bypass traditional cards by utilizing stablecoins, an area both companies are also exploring. The success of this KYA framework will determine whether Visa and Mastercard can leverage AI spending to fuel their next phase of growth, offering investors an early glimpse into the future of AI-driven commerce.