Mastercard Agent Pay will integrate with PayPal’s wallet to expand and scale agent-driven transactions for consumers and businesses globally.
Mastercard Agent Pay, the company’s agentic payments platform, will be integrated into PayPal’s wallet to allow AI agents to simply and securely complete transactions on behalf of PayPal users, according to the press release.
„Hundreds of millions of consumers and tens of millions of merchants globally will be able to participate in agentic commerce experiences, including the millions of Mastercard cards on file across the PayPal platform and the company’s co-branded credit and debit cards.” – the company said.
„As a part of this collaboration, PayPal will pilot the Mastercard Agent Pay Acceptance Framework and partner to co-develop and test with agents and merchants in the market. This work will ensure compatibility and interoperability with Mastercard and common agentic protocols, as well as enable AI agent verification and data exchange compatible with recently announced agentic protocols.” – the company explained.
How it will work:
Mastercard will enable cardholders to access their credentials securely via PayPal checkout wherever PayPal is accepted on an agent platform or agentic chat experience.
For example, Tom wants to buy new running shoes and asks an AI agent to search for merchants and suggest tailored options. Tom selects his preferred pair—on sale, in his size, and available for 2-day shipping—from a PayPal merchant and asks his agent to check out.
The AI agent knows that Tom uses PayPal and recognizes that the merchant accepts PayPal. It asks if Tom wants to checkout with PayPal. Tom then verifies his identity to quickly validate it is him making the purchase. Mastercard and PayPal’s platforms make this seamless and secure via tokenization and authentication.
Why it matters:
Consumers and businesses around the world rely on Mastercard and PayPal to safeguard their payments. Integrating Mastercard Agent Pay into PayPal’s wallet further enhances security for AI-powered shopping while also expanding choice.
As AI agents increasingly play a role in commerce on behalf of users, it is critical that merchants and small businesses also understand, trust and support these payments.
Merchants who offer PayPal checkout can easily participate in AI-driven commerce without complex technical requirements—reducing friction, improving conversion rates and helping to lower cart abandonment.
This not only simplifies the shopping experience but also empowers merchants to adapt quickly to evolving consumer expectations for AI-driven commerce and connect with new customer segments.
“Mastercard doesn’t just enable payments—we’re relentlessly pushing the boundaries of what’s possible in commerce,” said Sherri Haymond, co-president, Global Partnerships at Mastercard. “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.”
“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.
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