AI Just Got a Wallet: Mastercard and PayPal Unleash the Future of Shopping

Mastercard MA and PayPal PYPL are taking their long-running partnership into the next era of digital paymentsone powered by AI. The two companies announced the integration of Mastercard's Agent Pay platform into PayPal's wallet, creating what could be the foundation for agentic commerce, where AI assistants make purchases on behalf of users. This move could connect hundreds of millions of consumers and tens of millions of merchants globally, leveraging Mastercard's vast network and the millions of PayPal-linked and co-branded cards already in use.

PayPal will pilot Mastercard's Agent Pay Acceptance Framework, co-developing and testing new agent-based transaction models with merchants. The system is designed to ensure compatibility with Mastercard's agentic protocols, allowing AI agents to verify identity, exchange data securely, and complete purchases without friction. Imagine an AI assistant tasked with buying running shoesit recognizes the merchant accepts PayPal, confirms the user's preference, and finalizes the payment securely through Mastercard's tokenization and authentication layers. The result could be a smoother, faster, and safer checkout experience, while helping merchants lift conversion rates and reduce cart abandonment.

For both companies, this marks a strategic step toward scaling trusted AI-powered payments worldwide. Sherri Haymond, Mastercard's co-president of Global Partnerships, said the collaboration empowers merchants and consumers to transact with confidence, speed, and trust. Michelle Gill, PayPal's EVP and GM of Small Business & Financial Services, added that the partnership brings trust and flexibility to AI commerce. As the agentic landscape expands, Mastercard and PayPal are positioning themselves at its centerbuilding the payment rails for a world where AI doesn't just recommend what to buy but securely makes the purchase for you.