Mastercard and PayPal are extending their collaboration to incorporate the agentic payments platform, Mastercard Agent Pay, into PayPal’s wallet.
This move is set to enable AI agents to conduct transactions securely on behalf of users who utilise PayPal services.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
The partnership involves PayPal trialling the Mastercard Agent Pay Acceptance Framework.
Together, the companies will develop and test with various merchants and agents to ensure compatibility with Mastercard and common agentic protocols.
The initiative aims to streamline AI agent verification and data exchange, aligning with current agentic protocols.
The integration will allow Mastercard cardholders to access their payment credentials through PayPal’s checkout system on agent-enabled platforms or during agentic chat interactions.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataMastercard global partnerships co-president Sherri Haymond said: “Mastercard doesn’t just enable payments—we’re relentlessly pushing the boundaries of what’s possible in 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. Together, we’re building the future of commerce where seamless, secure payments are the launchpad for new experiences and bold ideas.”
Mastercard noted that by enabling PayPal checkout, merchants can tap into AI commerce with minimal technical barriers, potentially improving transaction success rates and reducing the likelihood of incomplete purchases.
The initiative is designed to streamline the shopping process and help merchants keep pace with consumer expectations that are increasingly leaning towards AI-assisted commerce.
Mastercard and PayPal noted that they intend to maintain their collaborative efforts on AI-centric projects, aiming to bring benefits to consumers and businesses internationally.
In September 2025, Mastercard unveiled a collection of AI-focused tools and consulting services, aimed at developers. The company announced the collaboration with Stripe, Google, and Ant International’s Antom to refine agentic transaction processes for digital merchants and platforms worldwide.
