Major payment and tech companies are gearing up for a new era in shopping called “agentic commerce.” This concept involves AI agents that can search for products, compare prices, and even buy items for us. Until now, chatbots could assist with finding products, but shoppers still had to leave the interface to complete purchases. Companies like Visa and Mastercard are working to change that.
Payment executives believe this technology could be available by 2026. Sandeep Malhotra from Mastercard points out that the shift from traditional payments to e-commerce was significant, but the move to agentic commerce may have an even bigger impact. “We are going from digital to intelligent,” he says, hinting at how this will change how we shop.
So, how does agentic commerce work? In simple terms, AI systems will act on behalf of users. For example, a user could say, “Find me the cheapest direct flight from Singapore to Tokyo under $500.” The AI would search for options, book the ticket, and process the payment right within the chat. This could make shopping much easier and quicker.
Visa and Mastercard are already testing these systems. In a recent survey, almost half of U.S. shoppers reported using AI to improve their shopping experience. Research from Adobe shows that AI-driven traffic to retail sites surged by an astonishing 4,700% compared to last year.
Their early pilots suggest that transactions might occur through popular AI platforms like ChatGPT and Google’s Gemini. OpenAI has even introduced a feature allowing direct purchases within its platform. Meanwhile, major retailers like Amazon are also exploring their own AI shopping tools, such as “Buy For Me.”
Despite the excitement, agentic commerce has its challenges. Security and liability are major concerns. For instance, if an AI agent makes a mistake, like booking a hotel for the wrong night, who is responsible? Traditionally, disputes involve the consumer, the issuing bank, the acquiring bank, and the merchant. Now, AI platforms will also play a role, complicating things further.
Visa is addressing these issues by developing “agentic tokens” to verify legitimate AI agents and protect against fraud. T.R. Ramachandran from Visa emphasizes the need for robust safeguards and clear dispute systems as this technology evolves.
Experts believe that while agentic commerce offers many benefits—like saving time and providing better deals—merchants may need to rethink their strategies. As AI becomes more prevalent in shopping, companies will need to adapt quickly. Ramachandran argues that the trend is unavoidable and that transformation will happen faster than we might think.
In the end, while we’re still in the early stages of this revolution, the potential for agentic commerce is exciting. As technology continues to develop, our shopping experiences could become significantly more streamlined and efficient.
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