NEW YORK—Mastercard and PayPal are expanding their partnership to integrate Mastercard’s Agent Pay platform into PayPal’s digital wallet, allowing AI agents to complete transactions on behalf of users.
The collaboration will give hundreds of millions of PayPal users and millions of merchants access to what the companies call “agentic commerce”—AI systems that can make secure purchases for consumers. The integration covers Mastercard cards already stored in PayPal accounts, as well as co-branded credit and debit cards.
PayPal will also pilot Mastercard’s Agent Pay Acceptance Framework, testing how AI agents interact with merchants and verifying compatibility with Mastercard’s transaction and security protocols.
Under the system, cardholders will be able to use their stored Mastercard credentials through PayPal checkout wherever agentic platforms or AI chat interfaces are supported. Mastercard’s tokenization and authentication technology will handle identity verification and payment authorization.
The companies said the initiative is intended to ensure AI-powered payments remain secure and interoperable as automated commerce expands. Both Mastercard and PayPal plan to continue developing additional AI-driven payment use cases over the coming year.