Banks Face a Looming AI Payments Reckoning

Artificial intelligence agents with the capacity to make payments on behalf of cardholders are set to make a significant impact on credit card issuers and merchants this year.

A recent report from American Banker indicates that AI agents, along with stablecoins, may displace in the vicinity of 20% of card-based settlement activity before 2026 draws to a close. 

What once may have seemed like a far-off future in the payments space is now closer than ever before. Artificial intelligence agents are poised not only to locate products consumers want to buy, but to complete the purchase of those items.

Representatives of payment-processing outfit Stripe were in attendance earlier this month at the National Retail Federation’s annual conference. The Stripe employees came away from the conference with the conclusion that retailers are moving quickly to mature their initiatives centering on agentic commerce.

Stripe noted on its website that many retailers are either transitioning to the implementation phase of agentic commerce — or preparing to — according to Maia Josebachvili, Chief Revenue Officer of AI at Stripe, in a recent blog post she co-wrote with one of her colleagues.

Many retailers have moved from questioning the viability of agentic commerce to figuring out how to implement it.

“Over the past year, retailers have shifted from asking whether agentic commerce is viable to focusing on how to implement it at scale — without giving up trust, brand, or control,” the blog entry read.

Research from Gartner shows how much the use of AI agents may grow in the years ahead.

Less than 1% of enterprise software applications included agentic AI in 2024, according to Gartner, but the company projects that number to soar to 33% by 2028. 

Artificial intelligence agents will likely handle thousands of financial transactions every day in the near future. For credit card issuers and merchants, that means now is the time to prepare for the use of AI agents in daily commerce.

With artificial intelligence threatening to transform the way buyers and sellers interact, credit card issuers can take meaningful steps to ensure they don’t get left in the dust as more consumers turn to AI agents for assistance with shopping.

Agentic commerce centers on the use of sophisticated technology. But for card companies, ensuring they have the right people in place to work on their AI endeavors may be one of the most important initial moves they can make. 

And putting an experienced leadership group in a position to navigate a company through the relatively uncharted waters of agentic commerce may mean the difference between success and failure.

Wells Fargo made a significant personnel move earlier this week to bolster its AI operations. The bank announced its selection of Faraz Shafiq to the role of Head of AI Products and Solutions. Shafiq’s past work experience includes stops at many leading innovative companies in the U.S., including Amazon Web Services and Google.

Wells Fargo’s appointment of Shafiq demonstrates how credit card issuers may find it helpful to turn to individuals with experience in Silicon Valley to propel their AI operations to the next level. In a press release on the hiring, Wells Fargo said bringing in top talent is a crucial element to expanding the impact of AI.

Wells Fargo has hired a veteran of Amazon Web Services and Google to the position of Head of AI Products and Solutions.

“AI is, of course, driving rapid changes across businesses of all types, and financial services is one of the most profoundly impacted sectors,” Shafiq commented in the release.

 “There is no better time for me to join a premier brand and industry leader like Wells Fargo to drive innovation, ensure responsible AI practices, and collaborate across business lines to deliver transformative solutions for customers and teammates,” he added.

Card companies must also give thought to how they will help their customers interact with AI agents. Not every consumer keeps up to date on advances in artificial intelligence, so some cardholders may require education to better understand how AI agents work and the advantages AI-driven commerce can bring them.

Clearly communicating how customers can preauthorize agents to spend on their behalf — including information regarding which businesses a customer permits an AI agent to buy from and how much money they permit the agent to spend — can go a long way toward helping people become more comfortable with the technology.

Merchants also have some work to do to make certain they’re ready for an influx of AI agents shopping on behalf of consumers. For starters, businesses that want to be involved in agentic commerce must verify that large language models are able to surface the products they have for sale.

American Banker notes that businesses need to include real-time data on products that is not only accurate but includes rich detail on items, including product availability, dimensions, and pricing. Providing AI agents with comprehensive data can help merchants reduce chargebacks and returns.

Shirley Gao, Chief Digital and Information Officer for retail clothing brand PacSun, told American Banker that she believes AI is the future of commerce.

“The reason that this is the top priority is really because retail has been evolving over the years, along with technology,” Gao said. “We moved from the traditional brick and mortar stores, then to online. Then from online, we expanded to mobile apps, and then we started social commerce. This new era of AI — customers are now moving there as well.”

Gao’s comments highlight a vital component of the transition to AI-driven commerce — consumer adoption.

Consumers under the age of 45 are more comfortable with allowing AI agents to make purchases on their behalf than those aged 45 to 64, according to a recent survey.

Credit card issuers and merchants can do everything in their power to improve their chances of success with AI-driven commerce. But those efforts won’t amount to much if consumers don’t embrace the use of AI agents in shopping.

A recent survey from Checkout.com suggests that consumers are on board with agentic payments. The survey results show that 57% of shoppers say they would be comfortable with permitting AI agents to purchase items for them.

Just 49% of consumers in the 45 to 54 age range and 30% of those aged 55 to 64 indicated they were comfortable with letting AI agents transact for them. But younger shoppers were much more open to the idea. 

Among those aged 25 to 34, 72% said they were comfortable with AI agents buying items on their behalf, and 68% of people aged 35 to 44 said they felt the same way. 

“Consumers aren’t just saying they might use AI to shop; many already are,” Jenny Hadlow, Chief Operating Officer at Checkout.com, revealed to American Banker. “That is not hypothetical behavior — that is readiness waiting for the functionality that will make it possible.”

As 2026 unfurls, credit card issuers and merchants owe it to themselves — and their customers — to prepare for and embrace AI-driven commerce.