Australian consumers are poised to experience a transformative shift in digital shopping as Mastercard pioneers the world’s first secure ‘agentic transaction’ system utilizing artificial intelligence. This groundbreaking development addresses longstanding security concerns that have hindered AI-assisted commerce.
Recent data reveals nearly half (48%) of Australians already employ AI tools for online purchases, with 78% anticipating these technologies will become mainstream. However, traditional security models have struggled to verify whether transactions were genuinely initiated by the account holder when conducted through AI assistants.
Mastercard’s innovation, developed in collaboration with Commonwealth Bank and Westpac, successfully demonstrated its capability through two practical applications: purchasing movie tickets at Events Cinemas and booking a Thredbo vacation. The system utilizes locally developed AI technology named ‘Matilda’ by Australian firm Maincode, showcasing domestic innovation in global payment solutions.
The core breakthrough lies in embedded security features that replace the current practice of inputting credit card details into chat interfaces. Instead, the system incorporates biometric verification methods like facial recognition alongside detailed transaction visibility, creating robust fraud detection capabilities and streamlined dispute resolution processes.
Surin Fernando, Mastercard’s Australasian Senior Vice President, emphasizes this represents a fundamental evolution in consumer behavior: ‘Australians will discover products through increasingly personalized methods while gaining the ability to execute transactions immediately or schedule future purchases based on shopping intent.’
Industry leaders highlight the significance of this development. Paul Monnington, Mastercard’s Australasia lead, describes it as ‘one of the most significant shifts in consumer behavior in decades.’ Banking executives note the technology will make consumer spending ‘quicker and easier’ while maintaining stringent security standards that benefit both merchants and customers.
This advancement effectively bridges the experiential gap between physical retail’s seamless tap-and-pay convenience and the traditionally cumbersome online checkout process, potentially setting new global standards for AI-commerce security.