Federal Reserve Governor Christopher Waller stated on September 29 that the rise of agentic commerce necessitates a shift in how banks handle authentication. As AI systems begin to act on behalf of consumers and businesses, the primary challenge becomes verifying that a software agent possesses the explicit authority to execute payments.
Major financial players including Visa, Mastercard, and PayPal are currently developing technologies to integrate software agents into payment processes. Visa’s Intelligent Commerce binds payment credentials to specific agents, while Mastercard’s Agent Pay infrastructure utilizes verifiable intent to confirm user consent before transactions occur.
Waller proposed the creation of a machine-readable record of delegated authority, functioning as a digital power of attorney. This record would specify authorized buyers, spending limits, permitted payment methods, and expiration dates. Such standards are intended to address core barriers including authentication, liability, and fraud.
B2B commerce is identified as a key area for agent adoption due to existing frameworks for budget limits and approved suppliers. However, autonomous agents in this sector may eventually need to navigate complex payment methods like wires, ACH, and instant payments, while managing high-value transactions and potential financial risks.
The industry currently lacks a unified standard for defining delegated authority. Potential solutions involve banks anchoring authority to account permissions, payment networks incorporating it into authorization standards, or merchants and AI platforms developing proprietary systems. Market participants are actively working on both platform-specific and interoperable standards.
