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Mastercard and PayPal have expanded their longstanding collaboration, focusing on the emerging field of secure agentic commerce, where transactions are completed by AI agents on behalf of users.
The core of this collaboration is the integration of Mastercard Agent Pay, the company’s agentic payments platform, directly into the PayPal wallet.
The integration will enable AI agents to make secure purchases on behalf of consumers and businesses.
It will reach hundreds of millions of PayPal users and tens of millions of merchants worldwide, including those using Mastercard cards on file and the companies’ co-branded credit and debit cards.
Michelle Gill
“PayPal is committed to enabling innovative commerce experiences.
By bringing together Mastercard’s Agent Pay with our wallet, we are empowering merchants and consumers to participate in agentic commerce with trust and flexibility at the center,”
said Michelle Gill, Executive Vice President, General Manager, Small Business & Financial Services at PayPal.
PayPal will co-develop and pilot Mastercard’s Agent Pay Acceptance Framework to test compatibility with merchants and AI agents, focusing on agent verification and secure data exchange under emerging agentic protocols.
When a PayPal user instructs an AI assistant to make a purchase, the agent identifies a PayPal-enabled merchant, initiates checkout, and prompts the user to verify their identity before completing the payment.
Mastercard and PayPal’s tokenization and authentication systems ensure the process remains seamless and secure.
For merchants, the collaboration enables participation in AI-led commerce without complex integrations, reducing checkout friction and helping businesses reach new customer segments.
Sherri Haymond
“Mastercard doesn’t just enable payments—we’re relentlessly pushing the boundaries of what’s possible in commerce. Our work with PayPal is driving a catalyst for agentic innovation at global scale, empowering merchants and consumers to transact with confidence, speed, and trust.
Together, we’re building the future of commerce where seamless, secure payments are the launchpad for new experiences and bold ideas.”
said Sherri Haymond, Co-president, Global Partnerships at Mastercard.
Both companies said they plan to continue developing AI-driven payment solutions as agentic commerce evolves, aiming to make secure, automated transactions a mainstream part of digital payments.
Featured image: Edited by Fintech News Singapore, based on image by Borin via Freepik
