'It comes down to what the consumer wants': Finance giants showcase the possible future of shopping
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As technology advances, the way people manage their finances has also changed.
For those who thought tap-and-go was the height of payment convenience, the next big leap has been a contentious one for many, especially seniors.
Visa and Mastercard revealed their plans for artificial intelligence (AI) agents that could make purchases on one's behalf.
While it's something out of a sci-fi film, this technology has been in the works and could change the way Australians shop, pay bills, and manage their money.
Visa and Mastercard's AI-powered' agents' could browse, select, and purchase items based on the customer's preferences and instructions.
It could act as a digital assistant that would handle a user's shopping tasks, book trips, or even pay monthly bills.
Visa's 'Intelligent Commerce' platform has been under development and built in partnership with Microsoft and OpenAI.
Customers can set up a set of tasks for their designated agent, and AI will do the legwork.
Meanwhile, Mastercard's version of the digital agent, 'Agent Pay', works similarly.
However, Agent Pay should put extra emphasis on security.
It uses 'Agentic Tokens', which are unique, one-time codes for each transaction to keep customer information safe.
Will AI have full control over your spending?
Both companies emphasised that the customer should still carry out final decisions.
Customers could decide what the AI could do, set spending limits, and approve transactions before they push through.
The digital assistant may buy anything under $50 without checking with the customer.
However, approval should be required for bigger spending.
'It comes down to what the consumer wants,' Visa's Australian head of client engagement, Ivana Tranchini, stated.
'I could decide I want to get an "OK" opportunity just before the purchase is made based on all of the different parameters I've already put in place, so I can control that,' Ms Tranchini stated.
'Or, I could say, "Actually, if it's below $5,000, I'm happy for you to purchase it."'
Most Australians use Visa or Mastercard technology through their bank cards.
However, Australia's major banks—ANZ, Commonwealth, Westpac, and NAB—have been cautious about the new tech.
The said banks wanted to make sure the technology was safe, reliable, and met all legal and regulatory standards before roll-out.
Technology commentator Trevor Long pointed out that banks are naturally risk-averse, especially when it comes to fraud.
Another concern that could arise from his incoming tech is the risk of AI making unauthorised purchases.
Both Visa and Mastercard assured customers that their systems are 'user-led' and should only spend money based on customer's instructions.
Both companies are also building multiple security layers, including fraud detection and one-time tokens, to protect customers' finances.
For many seniors, the idea of letting a computer program spend hard-earned money sounds unnerving.
While it promised to make life easier through automated payments and getting tasks such as shopping, the risk of mistakes, scams, or losing track of your spending also makes it a contentious program.
As with any new technology, it pays to be cautious, ask questions, and stay in control of your finances.
Would you trust an AI agent to do your shopping, or does the idea make you nervous? Share your thoughts and opinions about this new tech in the comments below.
For those who thought tap-and-go was the height of payment convenience, the next big leap has been a contentious one for many, especially seniors.
Visa and Mastercard revealed their plans for artificial intelligence (AI) agents that could make purchases on one's behalf.
While it's something out of a sci-fi film, this technology has been in the works and could change the way Australians shop, pay bills, and manage their money.
Visa and Mastercard's AI-powered' agents' could browse, select, and purchase items based on the customer's preferences and instructions.
It could act as a digital assistant that would handle a user's shopping tasks, book trips, or even pay monthly bills.
Visa's 'Intelligent Commerce' platform has been under development and built in partnership with Microsoft and OpenAI.
Customers can set up a set of tasks for their designated agent, and AI will do the legwork.
Meanwhile, Mastercard's version of the digital agent, 'Agent Pay', works similarly.
However, Agent Pay should put extra emphasis on security.
It uses 'Agentic Tokens', which are unique, one-time codes for each transaction to keep customer information safe.
Will AI have full control over your spending?
Both companies emphasised that the customer should still carry out final decisions.
Customers could decide what the AI could do, set spending limits, and approve transactions before they push through.
The digital assistant may buy anything under $50 without checking with the customer.
However, approval should be required for bigger spending.
'It comes down to what the consumer wants,' Visa's Australian head of client engagement, Ivana Tranchini, stated.
'I could decide I want to get an "OK" opportunity just before the purchase is made based on all of the different parameters I've already put in place, so I can control that,' Ms Tranchini stated.
'Or, I could say, "Actually, if it's below $5,000, I'm happy for you to purchase it."'
Most Australians use Visa or Mastercard technology through their bank cards.
However, Australia's major banks—ANZ, Commonwealth, Westpac, and NAB—have been cautious about the new tech.
The said banks wanted to make sure the technology was safe, reliable, and met all legal and regulatory standards before roll-out.
Technology commentator Trevor Long pointed out that banks are naturally risk-averse, especially when it comes to fraud.
Another concern that could arise from his incoming tech is the risk of AI making unauthorised purchases.
Both Visa and Mastercard assured customers that their systems are 'user-led' and should only spend money based on customer's instructions.
Both companies are also building multiple security layers, including fraud detection and one-time tokens, to protect customers' finances.
For many seniors, the idea of letting a computer program spend hard-earned money sounds unnerving.
While it promised to make life easier through automated payments and getting tasks such as shopping, the risk of mistakes, scams, or losing track of your spending also makes it a contentious program.
As with any new technology, it pays to be cautious, ask questions, and stay in control of your finances.
