Mastercard launches AI payments pilots in Singapore

Mastercard has rolled out authenticated agentic transactions in Singapore and Malaysia and plans to open a regional AI Centre of Excellence in Singapore.

The initial deployments mark the first phase of a broader ASEAN strategy focused on AI-initiated commerce, with more markets expected to follow.

Mastercard worked with UOB on the first region-wide testing, using the bank's ASEAN network to assess how the model could be extended across different markets. It also collaborated with local banks in each country to support deployments tailored to domestic conditions.

The move centres on what the industry calls agentic commerce, in which AI agents act on behalf of consumers at various stages of the buying process. The new transactions are authenticated and designed to create a record of the customer's authorisation, giving banks, merchants and cardholders greater visibility into how an AI-initiated payment was approved.

Testing model

The first pilots in Singapore and Malaysia are intended to establish a base for wider regional use on Mastercard's existing payments network. The tests combined tokenised credentials, payment passkeys, and what Mastercard describes as "verifiable intent"-a model designed to confirm what a user authorised when an AI agent acts on their behalf.

According to Mastercard, the verifiable intent system was co-developed with Google. It creates a tamper-resistant record that can be used across the payments chain as a shared reference point for consumers, merchants and issuers.

The announcement comes as banks and payments companies work out how to introduce AI agents into consumer finance without weakening established controls around fraud, consent and dispute resolution. In Southeast Asia, where digital payment adoption has risen quickly, the prospect of AI tools initiating purchases raises new questions about authentication standards and cross-border interoperability.

"The first wave of authenticated agentic transactions across ASEAN shows how quickly the region is embracing secure, AI‐enabled commerce. With early pilots now live across multiple markets, Mastercard is proving that AI agents can operate responsibly and transparently, giving consumers confidence that every transaction is authenticated and anchored in verifiable intent," said Safdar Khan, Division President, Southeast Asia, Mastercard.

UOB said the work reflects a broader effort to introduce AI-led payment services while maintaining governance controls. The bank described the collaboration as a multi-market test of how AI-driven transactions might fit into retail banking and commerce across different jurisdictions in the region.

"UOB remains committed to harnessing innovation responsibly to deliver simpler, safer and more seamless customer experiences across the region. Our multi-market collaboration with Mastercard shows how trusted, AI‐driven payments can enhance everyday banking and commerce, tailored to diverse lifestyle needs across markets. As adoption grows, we continue to combine innovation and strong governance to scale these capabilities across borders and sectors, unlocking greater value for consumers and businesses across ASEAN," said Jacquelyn Tan, Head of Group Personal Financial Services, UOB.

Singapore hub

Alongside the rollout, Mastercard will set up an AI Centre of Excellence in Singapore. The site will bring together its innovation hub, cybersecurity work, and AI teams, making it the largest innovation space in the Asia Pacific.

The centre is part of a broader push to expand Mastercard's AI work in payments, fraud detection, cybersecurity and real-time risk management. The company says it has used artificial intelligence across its network for more than a decade, and that its global operations include more than 2,000 data scientists, engineers and consultants working on data and AI.

Singapore has become a focal point for regional technology and financial firms developing AI systems under relatively mature regulatory oversight. For payment companies, the city-state offers proximity to major banks, cross-border commerce flows, and policymakers seeking to balance innovation with consumer safeguards.

Mastercard's latest move suggests that the next stage of competition in digital payments may centre less on basic digitisation and more on the controls needed when software agents begin initiating transactions. That puts greater emphasis on audit trails, tokenisation and standards that can be accepted across different banks and markets.

"Trust is the currency of the AI economy. As connected commerce accelerates across ASEAN, data is becoming the key to transforming payments into seamless, intuitive experiences. Mastercard's new AI Centre of Excellence in Singapore, together with deeper collaborations across the region, will strengthen the frameworks needed for AI‐powered commerce to scale responsibly. By pairing innovation with strong governance, the organisation is building the foundations for AI‐initiated payments that are secure by design, interoperable across borders and inclusive for consumers and businesses across Southeast Asia," said Khan.