Mastercard and Visa both recently unveiled powerful AI-enabled advancements that will change the payments industry. These announcements are not just an advancement, but a strategic signal for financial institutions to assess their long-term plans for 2026 and beyond to ensure sustainability and viability in the market.
Recent AI Announcements Making Headlines
Mastercard’s new Agent Pay will integrate with agentic AI to revolutionize commerce by delivering smarter, more personalized, and secure experiences to consumers, merchants, and issuers. They plan to collaborate with tech giants like Microsoft and IBM to embed payment capabilities within AI-driven interactions. Similarly, Visa announced their new initiative, Visa Intelligence Commerce, which enables AI to find and buy for consumers based on pre-selected preferences. Visa will streamline the payment experience, enabling seamless transactions in an AI-driven world that are built on trust and security.
Many are questioning what this means for the future of commerce. Mastercard outlined two use cases. In one instance, the AI agent can assist the consumer that may be going to a party to pick out an outfit based on the weather, purchase it, and ship it directly to the customer. In another instance, the AI agent can assist in streamlining supply chain management functions and B2B payments.
AI’s Growing Dominance in Payments
Agentic payments deepen transaction interaction and supply AI systems with more insight and data on individuals and businesses. Information gathered during the process could later be leveraged to tailor marketing campaigns, recommend ancillary products, and drive more personalized engagement.
AI implementation in the payments industry does not end there. As we discussed in a recent podcast, AI can assist financial institutions in leveraging responses to cardholders calling into the Call Center, offering them new products and services, increases to credit lines, or even new loan or deposit products.
Embracing the AI-Driven Future
There is no question that AI plays a pivotal role in the future of finance and payments. This wave of recent announcements serves as a wakeup call for bank and credit union leaders as they head into strategic planning sessions for 2026 and beyond. Financial institutions that are not actively exploring AI integration risk falling behind, especially as AI begins to influence card transaction volumes, loan demand, and deposit product uptake, all of which directly impact interchange and interest income streams.
To remain competitive, banks and credit unions should consider investing in AI infrastructure by adopting platforms and tools that integrate with emerging technologies, like Agent Pay. Financial institutions should also evaluate their current product offerings to ensure they align with the evolving needs of their customers/members. Additionally, partnering with fintech companies can help accelerate innovation by leveraging their specialized expertise and capabilities.
Engage fi is here to help. We take the time to understand your technology, vendor partners, and integration touchpoints to identify the most effective ways to leverage AI within your financial institution. Our goal is to position you for long-term success. Learn more at www.engagefi.com.
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