Mastercard introduced the new 'Agentic Payment Protocol' to enable AI-powered financial transactions. The protocol moves commerce beyond simple chatbots to functional, intent-based systems. Mastercard showcased the first live agentic AI payment in Dubai during a demonstration with Majid Al Futtaim. The new framework aims to securely bridge consumer search habits with autonomous financial transactions.
The protocol addresses security and risk through a 'Know Your Agent' (KYA) process. KYA registers and assigns unique IDs to third-party software agents. This process allows issuers and merchants to decline requests originating from unregistered sources.
The system leverages Mastercard's Digital Enablement Service (MDES) to tokenize card numbers. It relies on 'intent data'—the consumer's explicit instructions—to manage disputes and prevent fraudulent charges. This ensures existing consumer protections remain effective within the new AI-driven ecosystem.