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Will Visa's New Protocol Reinforce Confidence in Agent-Based Commerce?

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Key Takeaways

  • Visa introduced the Trusted Agent Protocol to secure AI-driven commerce and boost trust online.
  • The framework, developed with Cloudflare, helps merchants verify genuine AI agents.
  • Partners like Microsoft, Shopify, Stripe, Coinbase and Worldpay contributed to the protocol's design.

Visa Inc. (V - Free Report) is making waves in the world of AI-driven payments with the introduction of its Trusted Agent Protocol, a framework designed to secure agent-driven commerce. Developed in partnership with Cloudflare, the protocol facilitates secure communication between AI agents and merchants, allowing retailers to easily verify genuine agents and avoid malicious bots.

As AI continues to enhance online shopping experiences, whether it is through personalized recommendations or streamlined payment processes, it is becoming essential to differentiate between trustworthy agents and harmful bots. This initiative is designed to help merchants confirm the authenticity of AI agents that represent consumers, paving the way for a safer and more consistent environment for digital transactions. By establishing a system of trust among merchants, consumers and AI intermediaries, V is tackling one of the biggest challenges in the growth of agent-based commerce.

Early partners such as Microsoft, Shopify, Stripe, Coinbase and Worldpay have shared valuable insights into the design, indicating a strong alignment within the ecosystem. The company aims to create a protocol that is open and interoperable, complementing other emerging standards. This will help ensure smooth cross-platform transactions in the AI-driven economy.

Visa is solidifying its position in the digital payments arena by fostering trust in AI-driven commerce. If widely adopted, the Trusted Agent Protocol could become the foundational trust element for the next wave of commerce, connecting today’s payment system with the intelligent, autonomous economy of the future.

How Are Competitors Faring?

Some of V’s competitors in the fintech space include Mastercard Incorporated (MA - Free Report) and Affirm Holdings, Inc. (AFRM - Free Report) .

Mastercard is advancing its AI commerce strategy with Mastercard Agent Pay. This innovative protocol is designed to enable secure, intelligent and trustworthy transactions between AI agents and merchants. By focusing on authorization and data integrity, Mastercard aims to ensure AI agents interact securely with merchants, boosting confidence in automated payments.

Affirm is deepening its role in the world of AI-driven commerce by supporting Google’s Agent Payments Protocol. This partnership allows Affirm’s buy now, pay later services to integrate with AI agents, creating secure, transparent and smooth payment experiences across digital platforms and smart shopping environments.

Visa’s Price Performance, Valuation & Estimates

Over the past year, shares of Visa have jumped 24.6% compared with the 1% rise of the industry.

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From a valuation standpoint, V trades at a forward price-to-earnings ratio of 26.59, above the industry average of 21.23. V carries a Value Score of D.

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The Zacks Consensus Estimate for Visa’s fiscal 2025 earnings implies a 13.7% jump from the year-ago period.

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Image Source: Zacks Investment Research

Visa stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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