What's Happening?
HSBC and the Emerging Payments Association Asia (EPAA) have initiated an AI & Agentic Payments Working Group aimed at establishing standards for agentic commerce across the Asia Pacific region. This initiative seeks to unite banks, payment networks, fintech
companies, and technology platforms to develop common standards and infrastructure for agent identity, authentication, and authorization. Additionally, the group will focus on creating trust and liability frameworks to define responsibilities for AI agents. The working group will also engage with regulators across the Association of Southeast Asian Nations (ASEAN) and the Asia Pacific Economic Cooperation (APEC) to ensure compliance and facilitate growth in the region.
Why It's Important?
The formation of this working group is significant as it addresses the growing need for standardized practices in the rapidly expanding field of agentic commerce, which is expected to grow at a compound annual rate of nearly 45% through 2031 in the Asia Pacific region. By establishing these standards, the group aims to make agentic commerce viable and scalable, potentially leading to increased efficiency and security in financial transactions. This could have a profound impact on the financial industry, influencing how transactions are conducted and regulated, and potentially setting a precedent for other regions to follow.
What's Next?
The working group will continue to develop business models and commercial frameworks to support the scalability of agentic commerce. As they coordinate with regional regulators, the outcomes of these engagements could lead to new regulatory policies that further facilitate the growth of agentic commerce. The success of this initiative could encourage similar efforts in other regions, potentially leading to a global standardization of agentic commerce practices.
