The Rise of Agentic Commerce: How AI is Reshaping Latin American E-Commerce
A new era of e-commerce is dawning in Latin America, driven by the convergence of artificial intelligence and secure payment technologies. Microsoft and Mastercard are laying the groundwork for a future where AI agents don’t just recommend products, but autonomously execute purchases, operating within user-defined parameters. This shift, known as agentic commerce, is poised to disrupt the regional digital economy.
A $5 Trillion Global Opportunity
According to estimates from McKinsey and BCG, the global market for agentic commerce could reach a staggering $5 trillion. This presents a significant opportunity for Latin America, but realizing its potential requires overcoming existing infrastructure challenges and building consumer trust.
How Agentic Commerce Works: From Intent to Transaction
The core concept behind agentic commerce is a move away from active searching to passive authorization. Microsoft’s recent launch of solutions like Brand Agent and Copilot Checkout exemplifies this shift. With Brand Agent, users “converse” with an AI to express their needs, rather than actively searching for products. Copilot Checkout doesn’t require manual payment initiation; instead, users “authorize” the agent’s intent to purchase.
Hao Wang, Principal of Payment Product Management at Microsoft AI, describes the agent as a “digital concierge.” The goal is to delegate ongoing needs – like maintaining a stock of household essentials – to an AI that monitors inventory, recognizes preferred brands, and automatically executes purchases when necessary.
However, Microsoft’s role primarily focuses on discovery and intent. The actual transaction and payment processing rely on partners like Mastercard, who provide the financial infrastructure to settle the operation and complete the purchase.
Tokenization: The Cornerstone of Secure Agentic Payments
Mastercard emphasizes that secure operation is paramount for agentic commerce. Guida Sousa, SVP Digital Payments for LAC at Mastercard, highlights that the current model isn’t about complete autonomy, but rather “delegated supervision.” Users retain control through agent setup and permission definition.
Tokenization is a critical component of this security framework. Transactions initiated by AI agents must be processed as tokens, not as exposed sensitive data, to minimize fraud risk and improve authorization rates. Coupled with robust authentication methods – including biometrics and passkeys – tokenization builds a trusted ecosystem for software-initiated transactions.
Budget Programmability and Agent Accountability
Beyond secure payments, agentic commerce requires a new approach to agent accountability. Skyfire introduces the concept of “programmable budgets” to address this necessitate. Randall Davies, Head of Business at Skyfire, explains that traditional KYC (Know Your Customer) processes are insufficient for autonomous agents.
Instead, a “Know Your Agent” (KYA) framework is needed. KYA verifies the agent’s platform, permissions, spending limits, and auditability. Agents can operate with wallets governed by pre-defined rules, such as weekly spending caps, restrictions to specific merchants, or expiration dates. Transactions exceeding these parameters can be automatically revoked before settlement.
Latin America: Challenges and Opportunities
Deploying agentic commerce in Latin America presents unique challenges. The region’s fragmented payment infrastructure and diverse regulatory landscape (over 20 frameworks) complicate scalability. However, high penetration rates of digital wallets and real-time payment systems offer a foundation for adoption, provided tokenization and interoperability improve on the acquiring side.
Experts agree that agents will fundamentally change how users discover and choose products online. The financial aspects – settlement and compensation – will continue to rely on existing infrastructure, now fortified by tokenization, authentication, and programmable rules.
The key isn’t simply automating purchases, but enabling secure delegation of decisions through clear rules and controls.
FAQ
What is agentic commerce? Agentic commerce is a new approach to e-commerce where AI agents autonomously execute purchases on behalf of users, within pre-defined parameters.
Why is tokenization important for agentic commerce? Tokenization replaces sensitive payment data with unique tokens, reducing the risk of fraud and improving security.
What is “Know Your Agent” (KYA)? KYA is a framework for verifying the identity, permissions, and spending limits of AI agents to ensure accountability.
Is agentic commerce available in Latin America now? The tools are available globally, but widespread adoption in Latin America depends on local commerce integration.
What are the benefits of agentic commerce? Increased convenience, personalized shopping experiences, and automated purchasing of frequently needed items.
Did you know? First-party fraud is estimated to be a $50 billion global issue, and enhanced identity solutions are crucial for tackling this problem.
Explore more about the future of digital payments here.
