Mastercard has partnered with PayPal to contribute to the adoption of secure global agentic commerce.
This entails that Mastercard Agent Pay, the company’s agentic payments platform, will integrate with PayPal’s wallet to scale agent-powered transactions for consumers and businesses around the world. This will enable AI agents to complete payments on behalf of PayPal users, allowing consumers and merchants to participate in agentic commerce experiences. This includes the Mastercard cards on file across the PayPal platform and the company’s co-branded credit and debit cards.
Leveraging Mastercard’s Agent Pay and PayPal’s wallet
As part of the alliance, PayPal will pilot the Mastercard Agent Pay Acceptance Framework and co-develop and test with agents and merchants in the market to ensure compatibility and interoperability with Mastercard and common agentic protocols. This will enable AI agent verification and data exchange compatible with recently announced agentic protocols.
Mastercard will let cardholders securely access their credentials via PayPal checkout on agent platforms or AI chat experiences. When shopping, an AI agent can find PayPal merchants, suggest options, and handle checkout. The agent recognises PayPal users and merchants, offering PayPal as a payment option, and the customer verifies their identity to complete the purchase.
This whole process is made secure by Mastercard and PayPal using tokenisation and authentication, allowing users to have more choice with AI-driven shopping. With AI agents increasingly playing a role in commerce on users’ behalf, it is key that SMEs and merchants understand and support these payments, according to Mastercard. The new solution allows merchants to easily participate in the agentic commerce without complex technical requirements, which reduces friction and improves conversion rates.
As the agentic commerce landscape matures, Mastercard and PayPal will continue to work closely on a range of AI use cases to deliver more value to businesses and consumers around the world.
