Mastercard and PayPal Partner to Keep Credit Cards Relevant in AI-Driven Transactions

Mastercard and PayPal plan to integrate Mastercard’s agentic payments platform, Mastercard Agent Pay, into PayPal’s digital wallet. The move will allow people who have loaded Mastercard cards onto PayPal’s platform to engage in agentic commerce experiences, according to a press release.

As consumers turn to AI agents to help them find and buy items on their shopping lists, credit card issuers may have concerns about whether their products will continue to be a vital part of commerce in the future.

But the collaboration between Mastercard and PayPal should serve to quell those concerns. Credit cards will remain a key element in transactions even in instances where humans have handed over their shopping duties to an AI agent.

A recent report from the Wall Street Journal outlines the extent to which households are spending with their credit cards in 2025 even in the face of gloomy economic circumstances.

“Consumer sentiment has been really downbeat, yet they just keep spending,” Ted Rossman, a Senior Industry Analyst at Bankrate, told the Journal.

When leaders in the payments arena enable cardholders to use their cards in concert with AI agents, it can help credit cards keep their top-of-wallet status for many consumers.

People who are looking for ways to save time may tap AI agents to help them automate purchases. Some consumers may be wary of assigning purchasing power to an AI agent, but others will likely be eager to try a new way of shopping that leverages technological advances.

Credit card issuers that connect cardholders with agentic shopping experiences may win more business from consumers excited about adding efficiency to their lives. 

Merchants also stand to benefit from the expanded partnership between Mastercard and PayPal. The initiative from the two payments companies lets businesses that offer shoppers the option to use PayPal Checkout to participate in AI-powered commerce. And it allows merchants to avoid complex technical requirements, according to the press release.

Mastercard and PayPal’s work in the agentic commerce space allows merchants to bypass complex technical requirements while participating in AI-powered commerce.

Sherri Haymond, Co-President, Global Partnerships at Mastercard, said in the release that Mastercard is involved in pushing the envelope when it comes to the possibilities of commerce.

“Our work with PayPal is driving a catalyst for agentic innovation at global scale, empowering merchants and consumers to transact with confidence, speed, and trust,” Haymond said. “Together, we’re building the future of commerce where seamless, secure payments are the launchpad for new experiences and bold ideas.”

Mastercard and PayPal plan to keep a close working partnership to develop more use cases for AI,  driving value for businesses and consumers as the agentic commerce landscape continues to expand.