What's Happening?
HSBC, in collaboration with the Emerging Payments Association Asia (EPAA), has initiated an AI & Agentic Payments Working Group. This group aims to establish standards for agentic commerce across the Asia Pacific region. The initiative seeks to bring
together banks, payment networks, fintech companies, and technology platforms to develop common standards and infrastructure for agent identity, authentication, and authorization. Additionally, the group will work on trust and liability frameworks to define responsibility for AI agents. The working group also plans to engage with regulators across the Association of Southeast Asian Nations (ASEAN) and the Asia Pacific Economic Cooperation (APEC) to ensure the viability and scalability of agentic commerce.
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. By establishing clear standards and frameworks, the initiative aims to enhance trust and security in AI-driven transactions, which is crucial for the adoption and success of agentic commerce. This development could potentially influence global standards and practices, impacting financial institutions, technology companies, and regulatory bodies involved in digital payments and AI technologies.
What's Next?
The working group will continue to develop business models and commercial frameworks to support agentic commerce. It will also coordinate with regulators to ensure compliance and address any legal or ethical concerns that may arise. As the group progresses, it may influence policy decisions and regulatory frameworks in the Asia Pacific region, potentially setting a precedent for other regions to follow.
