Mastercard tests first AI agent-led payments in NZ

Mastercard has completed what it described as New Zealand's first fully authenticated agent-led payments on its network, marking a local test of so-called agentic commerce with Westpac and several merchant and technology partners.

The transactions used Mastercard's Agent Pay framework, which treats an AI agent as a recognised participant in the payment flow and enables the issuer, acquirer and merchant to identify that an agent initiated the transaction.

Local transactions

In the first transaction, a Westpac-issued debit card paid for cinema tickets from Event Cinemas. Mastercard said the payment was fully authorised with cardholder consent, and that all parties in the payment chain could see an agent conducted the purchase.

A separate transaction booked accommodation with QT Hotels & Resorts in Queenstown. Mastercard positioned the booking as an example of how agent-led payments could apply in travel.

Both transactions were processed through IPSI and completed using Maincode's large language model, Matilda, according to the companies. The set-up combined card issuing, merchant acceptance and third-party AI tooling within a single payment flow.

The New Zealand activity follows authenticated agentic transactions Mastercard recently carried out in Australia. It has also pointed to Agent Pay launches in the US and pilots in Australia, the UAE and Latin America.

Standards focus

Mastercard said Agent Pay is designed for interoperability between issuers, acquirers and merchants, and aligns with industry standards to provide consistency across partners and platforms.

It also highlighted visibility as central to the approach. In an agent-led purchase, that visibility can influence how payment providers apply controls, manage disputes and detect fraud.

"New Zealand has the potential to be leaders in digital payments again, and this milestone is testament to that," said Megan Simons, Mastercard country manager for New Zealand and the Pacific Islands.

"Our role is to ensure this future is built on trust, security and transparency, the same standards New Zealanders expect from everyday card payments. We're proud to partner with Westpac on this initiative, demonstrating what's possible when technology is matched with strong governance," Simons said.

Westpac said it expects agentic AI to have applications in consumer payment journeys as banks and card networks work through how to manage authentication and liability when software agents are involved in purchases.

"We're investing heavily in innovative technology and processes to make banking faster, safer and easier for New Zealanders. Agentic AI has huge potential to improve payment experiences, and we're pleased to be working with Mastercard to bring the technology to our customers in the future," said Sarah Hearn, managing director of product, sustainability and marketing at Westpac NZ.

Partner roles

Maincode, which provided the Matilda large language model used in the transactions, said the work reflects a wider shift in online commerce as AI systems move from providing information to taking action.

"Building AI systems that can not only reason but reliably act and facilitate payments is a fundamental shift in how business will be done online. The opportunities with this are huge. Exploring this frontier in partnership with Mastercard has connected our foundational tech to a key use case. We're excited to build the AI systems that run this from the model weights to the inference stack to the AI-native user interfaces," said Lukas Wesemann, AI research at Maincode.

IPSI, which processed the transactions, said payment orchestration will play a growing role as AI tools are integrated into checkout and payment experiences.

"The payments landscape is evolving rapidly as AI capabilities become increasingly integrated into checkout and payment experiences. We're witnessing a fundamental shift in how consumers interact with commerce, and intelligent payment orchestration is at the heart of this transformation. As a leader in payment technology and innovation in APAC for 20 years, we're excited to be shaping the future of payments alongside Mastercard and its partners - delivering experiences that are not only safe and secure, but genuinely intelligent and adaptive to each customer's needs," said Jarrett Baker, head of product at IPSI.

EVT, which owns Event Cinemas and QT Hotels & Resorts, said it sees potential for agent-led booking and purchasing across entertainment and travel, provided customers retain confidence in transaction security and transparency.

"Agent-powered commerce could reshape how New Zealanders discover, book and experience entertainment and travel, and EVT is proud to be part of this milestone with Mastercard. We are focused on making it effortless for guests to book a movie at Event Cinemas or plan a stay at a QT or Rydges, and authenticated agent-led transactions show how AI could make those moments even more seamless. Importantly, this innovation is built on the transparency and security our guests expect, offering an exciting glimpse into a future where trusted technology enhances every stage of the customer experience," said Andrew Turner, group general manager of technology and digital transformation at EVT.

Mastercard said it is expanding work on agentic commerce across Australasia and the Asia Pacific region, including a regional AI Centre of Excellence, partnerships with large language model providers, and dedicated teams working with financial institutions and merchants.