Mastercard Launches AI Payment Tool for Autonomous Transactions
Mastercard has introduced an AI payment tool that allows users to issue virtual credit cards to their AI agents, enabling the bots to make purchases without requiring approval from the cardholder each time. The feature is part of a partnership with startup Alchemy and lets users set spending limits and merchant restrictions for these AI-driven transactions. The system uses 'agentic tokens' generated by issuing banks that bundle transaction details and user intent to ensure compliance within authorized boundaries. Mastercard's chief product officer, Jorn Lambert, emphasized the inevitability of agentic commerce but noted it will take time to gain widespread adoption. While Visa has also partnered with Alchemy earlier this year, trust remains a major barrier due to concerns over AI misuse or unauthorized spending. Regulatory uncertainty and liability issues remain unresolved as well. Experts like Citizens Financial Group's Brendan Coughlin acknowledge the potential of agentic commerce but caution about its risks.
Topics: Artificial Intelligence Credit Cards Fintech Payment Systems