Whalesbook
Payments giant Visa is planning to launch pilot programs for 'agentic commerce' in the Asia-Pacific region by early next year. This new form of shopping uses AI-powered agents to make purchases and payments on behalf of users. Visa's initiative includes its Visa Intelligent Commerce (VIC) program, integrating security features like tokenization and advanced authentication. In India, the launch is contingent on obtaining necessary regulatory approvals from the Reserve Bank of India (RBI). Visa's head of products and solutions for Asia-Pacific, T R Ramachandran, highlighted India's rapid e-commerce growth and the need for a responsible, controlled rollout of this advanced technology.
Visa is set to initiate pilot tests for agentic commerce across the Asia-Pacific region, with readiness expected by early next year. Agentic commerce represents a significant shift in online transactions, where artificial intelligence (AI) agents will autonomously shop and execute payments for consumers.
Visa's strategy is underpinned by its Visa Intelligent Commerce (VIC) program, which bundles crucial functionalities such as tokenization, authentication protocols, payment instructions, and transaction data signals to ensure secure and efficient operations.
For India, the introduction of VIC is planned only after securing the required regulatory permissions. T R Ramachandran, Visa's Head of Products and Solutions (Asia-Pacific), stated that the existing regulatory framework in India, including tokenization and new RBI authentication guidelines, is conducive for agentic commerce. Visa intends to present its technology to the RBI to ensure a responsible deployment with all necessary approvals.
Ramachandran emphasized India's impressive year-on-year growth in e-commerce and quick commerce, noting that online shopping is expanding beyond major metropolitan areas. He anticipates that the rapid advancement of Large Language Models (LLMs) will further accelerate online retail. Visa is committed to implementing agentic commerce with robust guardrails, controls, and constraints to prevent misuse.
Furthermore, Visa is actively strengthening India's financial ecosystem against fraud. The company has deployed AI-driven risk management solutions, including 'Visa Advanced Authorisation' and 'Visa Risk Manager,' with most banking partners and fintech firms. These tools enhance real-time fraud detection capabilities and bolster overall ecosystem resilience.
Impact:
This development signifies a major step towards automated commerce, potentially revolutionizing online shopping by offering greater convenience and personalization. It could lead to increased transaction volumes and further innovation in payment technologies, impacting consumer behavior and e-commerce strategies across the region. The emphasis on regulatory approval and AI-driven security also highlights the growing importance of trust and safety in digital transactions. Rating: 7/10
Difficult Terms:
Agentic Commerce: A new era where AI-powered digital assistants (agents) perform shopping and payment tasks on behalf of users.
Tokenisation: A security process that replaces sensitive payment card data with a unique, non-sensitive identifier (token) to protect information during transactions.
Authentication: The process of verifying the identity of a user or device to ensure it is legitimate before granting access or completing a transaction.
LLMs (Large Language Models): Advanced AI programs designed to understand and generate human-like text, capable of tasks like natural language processing and content creation.
E-commerce: The buying and selling of goods and services using the internet.
Quick Commerce: A subset of e-commerce focused on extremely fast delivery of goods, often within minutes to a few hours.
Fintech: Short for financial technology; companies that use technology to offer innovative financial services.
RBI (Reserve Bank of India): The central bank of India, responsible for regulating the country's banking and financial system.
