Visa and Mastercard have announced major AI initiatives that could reshape the future of e-commerce, marking a significant step in the evolution of retail technology.

The initiatives-Visa's Intelligent Commerce and Mastercard's Agent Pay-move beyond traditional recommendation engines to empower AI agents to make purchases directly on behalf of consumers.

Visa is partnering with leading tech firms, including Anthropic, IBM, Microsoft, OpenAI, and Stripe, to build a system where AI agents shop according to user preferences.

Meanwhile, Mastercard's Agent Pay integrates payment functionality into AI-driven conversational platforms, blending commerce and conversation into a seamless user experience.

These announcements follow years of AI integration into retail, with adoption growing at 40% annually and the market projected to surpass$8 billion by 2024. Retailers initially used AI for backend optimisation, but nearly 87% now apply it in customer-facing roles.

The next phase, where AI doesn't just suggest but acts, is rapidly taking shape-backed by consumer demand for hyper-personalisation and efficiency.

Research suggests 71% of consumers want generative AI embedded in their shopping journeys, with 58% already turning to AI tools over traditional search engines for recommendations. However, consumer trust remains a challenge.

Satisfaction with AI dropped slightly last year, highlighting concerns over privacy and implementation quality-especially critical for financial transactions.

Visa and Mastercard's moves reflect both opportunity and necessity. With 75% of retailers viewing AI agents as essential within the next year, and AI expected to handle 20% of eCommerce tasks, the payment giants are positioning themselves as indispensable infrastructure in a fast-changing market.

Their broad alliances across AI, payments, and tech underline a shared goal: to stay central as shopping behaviours evolve in the AI era.

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