Over the past six months, the company has worked to overcome technical challenges that have hindered AI agents' payment capabilities, which are crucial for a seamless shopping experience.

The new system will feature real-time transaction monitoring and fraud prevention measures, aimed at reassuring both consumers and merchants about the security of their transactions.

Visa's security measures have proven effective, helping Australian businesses prevent approximately $714 million in fraud over the past year, underscoring the company's commitment to secure payment systems.

Visa is set to launch an initiative that integrates artificial intelligence (AI) agents with credit card functionalities, enabling these agents to make purchases on behalf of users.

To enhance this initiative, Visa has partnered with IBM's watsonx Orchestrate and payment processors like Braintree and Checkout.com, focusing on improving tokenization and ensuring secure transactions.

Key components of the system include modules for Authentication, Tokenization, Payment Instructions, Personalization, and Signals, all designed to enhance security and user experience.

Mastercard is also establishing standards for agentic payments, including the application of the Model Context Protocol to Secure Remote Commerce, to build trust in this evolving commerce landscape.

Jorn Lambert, Mastercard’s chief product officer, highlighted that this launch represents a significant step towards redefining commerce in the AI era, focusing on distinguishing trusted agents from potential fraudsters.

While consumers will maintain control over the purchasing capabilities of AI agents, concerns about fraud persist, especially as criminals may exploit similar technologies for phishing attacks.

Alan Machet, Visa's Group Country Manager for Australia, emphasized that AI commerce is the future of shopping, enhancing both consumer trust and business efficiency.

The integration of tokenized payment credentials across agentic commerce platforms will provide banks with improved visibility and security, reinforcing their positions in the evolving market.

The rise of AI in shopping is evident, with companies like Google, Microsoft, and OpenAI developing AI agents to assist users in finding products more efficiently, indicating a growing trend in AI integration in commerce.