Mastercard has completed New Zealand’s first AI‑only, or “agentic,” payment transactions, allowing a digital assistant to request, authenticate, and settle purchases without any human input. In partnership with Westpac, the pilot successfully booked movie tickets and a hotel room, proving that an AI can handle the full payment flow while meeting the same security standards as traditional card payments.
Understanding “Agentic” Payments
“Agentic” refers to an AI‑driven interaction where the digital assistant not only understands a user’s request but also initiates the payment process autonomously. The AI handles authentication, compliance checks, and settlement, acting like a virtual checkout clerk that never sleeps.
How the New Zealand Pilot Worked
Transaction Scenarios
- Booking a pair of movie tickets through a conversational chat.
- Reserving a hotel room without opening a separate app.
Security and Authentication
Each transaction was authenticated using the same multi‑factor verification steps a human would face. Tokenised card data, biometric checks (where available), and real‑time risk scoring were embedded directly into the AI workflow, ensuring compliance with Mastercard’s security framework.
Why the Industry Is Paying Attention
Financial institutions see this as a proof point that AI can meet rigorous compliance standards while delivering frictionless experiences. If the AI can maintain AML and KYC safeguards across diverse merchant categories, it could reshape checkout flows for banks and fintechs alike.
Benefits for Merchants and Consumers
- Reduced cart abandonment: A single‑click, voice‑driven purchase eliminates the steps that often cause shoppers to drop off.
- New revenue streams: Banks can charge AI service fees and monetize data analytics derived from autonomous transactions.
- Instant convenience: You can simply say “book a weekend in Queenstown,” and the AI completes the payment behind the scenes.
Challenges and Risk Considerations
Relying on a single AI vendor could concentrate risk. A breach in the AI decision‑making layer might expose millions of transactions, even if the underlying card network stays secure. Mastercard counters this by emphasizing its “trust, transparency, and security” framework, but real‑world stress tests will be the ultimate judge.
Future Outlook for AI‑Driven Checkout
Mastercard plans to expand the pilot to other supportive markets, building on the Australian test and the New Zealand rollout. Expect future use cases such as recurring billing, cross‑border purchases, and micro‑transactions—all processed under the same security umbrella that has protected cardholders for decades.
