Mastercard and PayPal Integrate Agent Pay for AI-Driven Transactions

October 27, 2025
Mastercard and PayPal are expanding their partnership to integrate Mastercard’s Agent Pay platform into PayPal’s wallet, enabling secure AI-initiated payments for consumers and merchants worldwide.

In a press release, Mastercard and PayPal announced an expansion of their partnership to integrate Mastercard’s Agent Pay platform into PayPal’s digital wallet. The collaboration aims to bring secure agentic commerce to consumers and merchants globally by allowing AI agents to complete transactions on behalf of users.

Through this integration, PayPal will pilot Mastercard’s Agent Pay Acceptance Framework, which standardizes AI agent verification and ensures compatibility with agentic protocols. The system uses tokenization and authentication to protect user credentials and confirm identity during AI-initiated purchases.

The partnership enables hundreds of millions of consumers and tens of millions of merchants to participate in agent-driven commerce, including those using Mastercard cards stored in PayPal’s ecosystem. Merchants offering PayPal checkout will be able to accept AI-originated payments without additional technical setup, reducing friction and improving checkout efficiency.

Both companies said they will continue developing AI-related use cases to expand secure, seamless agentic payment experiences across global markets.

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