Mastercard's agentic payments platform is being integrated into PayPal's wallet to allow AI agents to complete transactions on behalf of users.
The partnership means that hundreds of millions of consumers and tens of millions of merchants globally will be able enable agents to make purchases. PayPal will also pilot the Mastercard Agent Pay Acceptance Framework and partner to co-develop and test with agents and merchants.
Mastercard will enable cardholders to access their credentials securely via PayPal checkout wherever PayPal is accepted on an agent platform or agentic chat experience.
Mastercard offers the example of someone wanting to buy new running shoes and asking an AI agent to search for merchants and suggest tailored options. The shopper selects their preferred pair — on sale, in the right size, and available for 2-day shipping — from a PayPal merchant and asks the agent to check out.
The AI agent knows the shopper uses PayPal and recognises that the merchant accepts PayPal. It asks if the user wants to checkout with PayPal, who can then verify their identity to quickly validate it is them making the purchase.
"By bringing together Mastercard’s Agent Pay with our wallet, we are empowering merchants and consumers to participate in agentic commerce with trust and flexibility at the center,” says Michelle Gill, EVP, GM, small business and financial services, PayPal.