What's Happening?
The Emerging Payments Association Asia (EPAA) has initiated an AI & Agentic Payments Working Group in collaboration with HSBC. This group aims to establish standards and frameworks to support agentic commerce across the Asia Pacific region. The initiative
comes as AI agents increasingly facilitate payments for consumers and businesses. The group will address issues such as liability when AI agents exceed their mandates, cross-border identification, and authentication of agents. The working group will also focus on developing business frameworks for scaling agentic commerce and engaging with regulators across ASEAN and APEC. The group's positions will be developed through an 18-month engagement process with ASEAN and APEC governments, with formal policy recommendations expected by November 2027.
Why It's Important?
The formation of this working group is significant as it addresses the growing role of AI in financial transactions, which presents both opportunities and challenges. By establishing clear standards and frameworks, the group aims to mitigate risks associated with agentic payments, such as unauthorized transactions and fraud. This initiative could enhance trust and security in digital payments, potentially leading to increased adoption of AI-driven financial services. The collaboration between major financial institutions and regulators could also pave the way for more cohesive and secure financial ecosystems across the Asia Pacific region, benefiting businesses and consumers alike.
What's Next?
The working group will continue to develop its positions and engage with regional governments and central banks over the next 18 months. The outcomes of these engagements will be crucial in shaping the regulatory landscape for agentic payments in the region. As the group progresses, it will likely produce toolkits and operational intelligence to assist member organizations in navigating the evolving digital payment environment. The success of this initiative could influence global standards for AI-driven financial transactions, potentially impacting international trade and commerce.
