Mastercard has recently launched a new payment infrastructure called Agent Pay for Machines (AP4M) in collaboration with major industry players, including Coinbase, OKX, Stripe, and Ripple. This innovative system is designed to facilitate AI-powered transactions across both crypto and traditional financial networks, focusing on high-volume, low-value transactions that can be executed at machine speed. The introduction of AP4M enhances Mastercard’s existing global network by adding a layer that efficiently accommodates microtransactions, which often face challenges on legacy payment rails.
Jorn Lambert, Mastercard’s Chief Product Officer, emphasized that the new infrastructure aims to foster an environment conducive to a “superbloom of AI business models.” With Agent Pay for Machines, AI agents will be capable of conducting transactions with high frequency and minimal values, all while ensuring low latency.
To establish trust and authorization in automated transactions, the platform utilizes credentialing systems. Spending limits can be set by users, and Mastercard’s network ensures settlement. Initial credentials will be recorded on blockchain networks including Polygon, Solana, and Base, with plans for broader access beginning in 2026. The project is backed by over 30 firms, including notable crypto entities like Aave Labs, Alchemy, and MoonPay, alongside technology companies such as Checkout.com and Cloudflare.
Raj Dhamodharan, who leads Mastercard’s blockchain and digital asset initiatives, highlighted that the company has been addressing trust challenges in card and B2B payments for decades. He noted that their experience positions them to effectively manage the relationships and interactions of various AI agents.
Dhamodharan also pointed to an emerging demand for payment options, citing increased activity surrounding HTTP 402, a developing internet payment standard. He reported that numerous declines due to lack of payment options have been observed, indicating that there is substantial opportunity for growth in this sector.
As competition intensifies in the AI commerce landscape, companies like Coinbase and Tempo are developing their own protocols, while Visa has launched its AI payment experiments. According to estimates, AI agents could manage trillions of dollars in transactions by the end of this decade.
The launch of Agent Pay for Machines represents an extension of Mastercard’s wider strategy in the cryptocurrency space, including the use of stablecoins such as USDC, PYUSD, and RLUSD for card settlements. The company also recently acquired the stablecoin startup BVNK and maintains a New York BitLicense, alongside blockchain initiatives involving over 100 partners, including Binance, Circle, and PayPal.
This innovative step by Mastercard not only reinforces its presence in the crypto payment ecosystem but also aims to set the stage for the future of automated transactions in a rapidly evolving digital landscape.
