Agentic Payments: What They Are, How They Work, and Why They Matter
Future of Agentic Payments
Agentic payments, powered by autonomous AI agents, may represent one of the most significant shifts in the way people and businesses transact since the rise of e-commerce or contactless payments. But what are they, how do they work, and what do merchants, SaaS platforms and payment service providers (PSPs) need to know?
In this article, we’ll break down:
- What are agentic payments
- How they work (with real-world examples)
- Core technologies like tokenisation and agent-initiated payments
- How to embed agentic payment capabilities
- Benefits for merchants and product teams
- What to look for in a future-ready payments stack
What Are Agentic Payments?
Agentic payments refer to transactions initiated and completed by autonomous AI agents, software tools acting on behalf of users, based on pre-approved rules, preferences or delegated authority.
Rather than a user manually browsing, clicking, entering card details and confirming a purchase, an AI agent can handle the entire purchase journey, research, negotiation, checkout and payment, without any user interface (UI) required.
These agents might live in a digital assistant, a wearable, an app, or even within an enterprise software suite.
Real-world example
Visa recently unveiled its “Intelligent Commerce” framework, while Mastercard launched “Agent Pay”, and PayPal introduced an “Agent Toolkit”, all signalling a growing consensus that the future of commerce will be increasingly handled by autonomous software agents, not just users.
How Do Agentic Payments Work?
The typical agentic payment flow relies on multiple layers of technology to operate securely and autonomously. Here’s a simplified overview:
- User preference encoding
The user sets predefined preferences (e.g. budget, sustainability goals, delivery timeframes). - AI agent selection and action
An AI agent acts on behalf of the user, discovering products/services and initiating transactions. - Authentication and authorisation
This is handled via tokenised credentials and biometric or behavioural verification. - Agent-initiated payment
A payment request is sent directly to a PSP or gateway via APIs or embedded finance infrastructure. - Settlement and confirmation
Funds are transferred, and the merchant receives confirmation all without manual intervention.
Core Technologies Behind Agentic Payments
To understand agentic payments, it's important to grasp the underlying technologies enabling them:
|
Technology |
Role |
|
Tokenisation |
Replaces card data with secure tokens for safe reuse by AI agents |
|
Agent-initiated payments |
Enables an AI agent to trigger payments based on consent |
|
Consent-based authentication |
Ensures users retain control over which agents can transact on their behalf |
|
Biometric security |
Validates the user via fingerprint, voice, or facial recognition |
|
Merchant Configuration Protocol (MCP) |
Ensures merchant systems can interpret and respond to agent requests efficiently |
|
Real-time fraud detection |
Protects against misuse by continuously verifying intent and context |
These systems combine to create a secure, seamless, and scalable infrastructure for machine-led commerce.
How Can Merchants Embed Agentic Payments?
Agentic commerce isn’t just for Big Tech. Businesses of all sizes, especially those offering SaaS, subscriptions or marketplace services, can start preparing now.
Here’s how product teams can begin:
- Integrate tokenisation APIs
Work with PSPs that support secure, reusable tokens designed for autonomous systems. - Support agent-initiated flows
Look for acquirers or gateways that offer tools like Mastercard’s Agent Pay or PayPal’s Agent Toolkit. - Implement biometric authentication
Build support for Apple Face ID, Android Biometric Prompt or similar frameworks to link user devices with authorised agents. - Upgrade backend systems
Ensure your order systems, inventory logic and transaction endpoints can interact with third-party agent systems. - Provide machine-readable offers
Use structured data and pricing logic that agents can interpret, much like SEO for commerce.
What Are the Benefits of Agentic Payments?
✅ For merchants:
- Increased conversion: No drop-off from abandoned carts or failed logins.
- Higher retention: Frictionless repurchasing through delegated authority.
- Expanded reach: AI agents can interact with your platform 24/7, globally.
✅ For SaaS platforms:
- Recurring revenue support: Agents can manage renewals or upgrades automatically.
- Embedded payments: Agentic flows align well with platform-native, white-labelled payment infrastructure.
✅ For consumers:
- Convenience: Hands-free, low-friction buying with control via settings or preferences.
- Personalisation: AI agents adapt purchases based on user goals or context.
What to Look for in a Payments Provider
When choosing a provider to support agentic commerce, consider:
- Does the provider offer agent-initiated payment APIs?
- Is tokenisation and consent-based security fully integrated?
- Are the systems interoperable with major platforms (e.g. Apple, Meta, Android, etc.)?
- How quickly can they adapt to changes in AI and UX standards?
- Do they offer developer-friendly documentation for product teams?
Wrapping It Up
Agentic payments may still be in their early stages, but the necessary infrastructure is already in place. Just as e-commerce redefined shopping in the early 2000s, agent-led purchasing is poised to change how we build products, onboard users, and capture value.
For payment professionals, product designers, SaaS founders and engineers alike, this is the time to start preparing your infrastructure for an agentic future.
