AI-Driven Authentication Shifts Focus for Banks and Payment Networks

Federal Reserve Governor Christopher Waller stated that artificial intelligence is altering how banks and payment networks authenticate transactions, particularly in agentic commerce. In his speech at Sibos, titled 'Payments in the Age of AI Agents,' Waller noted that authentication now needs to prove not only who initiated a transaction but also whether an AI system has the authority to act on behalf of its user.

Waller pointed out that current fraud systems are calibrated around human behavior and may need to be adjusted as software agents develop unique transaction patterns. Existing authentication methods, which rely on valid payment credentials, may not be sufficient in agentic commerce transactions.

The industry is already exploring solutions to this challenge. Visa's Intelligent Commerce technology allows binding payment credentials to a specific agent and applies controls designed to keep purchases aligned with the user's instructions. Mastercard's Agent Pay infrastructure includes registered agents and verifiable intent, which confirms user consent before an agent acts.