AI Commerce and Agent Transactions Discussion

I'm part of the product world and so part of our product organization working with our merchants here is innovation. One of the various organizations that we're looking at in the city is a general commerce. They're very natural with both our merchants of a general commerce as well as our AI employees themselves, the chapter between the world, Google, and the nine, and what else can help them reach the family.

How they go through that. Does anybody really like that?

Can I go through to Steve? Hi, I'm Steve Crawl, another director of technology engagement with a working advisor. Those of you who don't know the MAG, it is a merchant trade association made up of a hundred large businesses in the country, they're working in the world as well.

I focus on agency,

education, and collaboration. I mean, prior to the MAG, I worked with World Pay, FIS, for 16 years. I'm going to go to the bank and the fifth -third bank bank. And if you want to feel better about the FIS or the advisor, it's not, we'll be at FIS.

And everybody knows it, so we're going to be able

to do this.

Still in the same hall. Still in the same

hall.

I mean, we need a real

question.

Okay.

So, how will we see the AI to change things today? Specifically, though, as it becomes?

Yeah, so, look, AI is changing rapidly, and I kind of break it down in, like, three ways in my head. One is it's rapidly entering the development of life. I don't want to talk about that. The second thing about it is it's really changing the threat from a cyber and a fraud perspective.

And I'm sure it's going to take about that. And I think the other piece,

right,

is in the agenda commerce space. And, you know, I think there's really two main players right now.

I

think you have OpenAI and Anthropic, and I think you see two distinctly different people going after. OpenAI just signed a relationship partnership with Visa. OpenAI seems to really be positioned towards the end customer, right, to create those end user experiences.

Anthropic is looking more at creating a B2B experience where they're opening up APIs and allowing companies to put their products and their pricing models in. And it's really a vision of a world where those negotiations happen between agents, right, to move these products back and forth between companies.

And I think right now caught in the middle of everything with not the clearest direction is where the issuers are going to play and how their time is going to play in that space, right. So I think right now I don't believe that anyone's cracked it.

I think it's still very much all right. I think people have hit their toes in it. But I think there's right now I think there's a big position of getting ready, like, and making sure that we're enabled across the business for a trade.

That's a great

question.

Okay. So with that, we're going to talk about the challenges, the customer, the implications, and the next phase in this session. And we'll go to Q &A at the end. So I'm going to open this question up to David at Schwartz.

Where are we at Egypt accomplished today?

Yeah. So I'm going to borrow from our entity rule and it's capital for what they said earlier today, what they call the cultures and whatnot. So they described where they see the market as the first half of the first inning.

So very early days, very much kind of a test on their phase of the Ajita cars. You know, they launched their own version of instant checkout after ChattoBT. So ChattoBT launched it in about two four last year and had a number of big merchants in our places.

Like I've seen Shopify come into it to buy a quality season and that was the first foray into it. And then some other big merchants like Walmart, for example, did some things in ChattoBT as well. And then Google came out and that's the other one that I'd say is a big player that we're seeing.

It's Google and Gemini. They came out with their version of that in about two one or so. What we're seeing in the market is the commerce part of it is very limited today. It's very small transactions in numbers and whatnot.

But it's more of a testing learning and optimizing around that. We're getting all the learnings from that. And Google has announced that the Google I .O. conference about a couple weeks back. Some of the answers they're making as part of that.

So the commerce is very adjacent within it. But what is happening today and what we're seeing is discovery and product discovery of the consumer industry is really changing and it has been changing for a while now. Where we see a lot of consumers starting with their USBA applications.

And so the merchant community is very focused on that to make sure that their products are discoverable, that they're optimized and whatnot. And they do want them to be purchasable. And they do see it going to each agent and they want to get you ready for that.

But it's very much a low garden at this point where there's a handful of merchants. The Google platform about 2025 merchants are really active within it. They've been invited into that. And then on the Chatsby site, it's about 100 or so.

Big retail merchants. Both platforms are talking about opening it up. Come from Q2, Q3. Our other Q2, they can do a really Q3 to allow for the next set of merchants to come in. But there's still big learnings and optimizing where they are.

So that's kind of where

we're seeing more right now. Steve, this question is for you. And it came up earlier. Nick, our comment on this. And Kevin did briefly, too, that, you know, will the state be brought to resolve around fraud and liability, transparency, and data ownership?

These are big questions that everybody has in the state. You answered that question? Yeah. I'll see you. I think a lot of things really need to settle out before the,

you know, everyday activity for people. I think another signal about how early we are in the cycle is from Nick's presentation when we talked about the announcement that IMG, that, you know, that they have just done for the first agent transaction, you know, for the transaction in the CDC.

Not the first billion. Not the first million. Okay? Now, they may need to take it one. Very, very early in this. And a lot of things have not settled. We're still in kind of protocols. Like, every week, you know, some new protocols comes out.

I think there's going to be some consolidation in that area. And there's also needs to be some standardization of all of this, right? Right now, the rules are being written by the individual regulations, especially the protocols. And that's just not in the scale.

The issues around liability is the concern of those emergency and issuers. But I think the thing there is how are we going to determine the fact what happened, what evidence are we going to get in order to determine what activity is going to be transaction when it needs to be lost.

So there's just a lot of things.

I think it's spot on. I think there's all the barriers that we've done shot are very good. And it happened to be good.

So, David, what's commonality

do you see between issuer and merchants? And then there's concern about the future?

Yeah. So, the cost number, they're doing the issuers side, also about the merchants all day long. And I think a lot of the concerns are very aligned. And what I, in terms of what merchants wanted is it would be a much different approach.

And so they wanted to be able to have all their consolidated settlement that they have today. They wanted to generally deliver some other kind of rules. They want to identify the transactions where it did, see what the interchange rates were, see what the chartback rates were, see the very statements that they want to see about the transaction game run through the consumer lives and all those kind of things.

And then on the, they want to convert stereotypes. And so, that includes states like private data cards, and gift cards, and technology points, and whatnot, that they all want to come into it. And I think issuers very much want, some are, that they want to maintain comparable and whatnot.

They want to be able to bring their cards into the new agenda world. And so we're definitely bringing those anomalies. I think where there's still some friction, perhaps perpetually, it's around the initial liability and whatnot, and where the liability goes with the agenda transaction.

For the most part, it still operates today at the end of the card on present. Transaction, the human itself, is very much in the loop. Most of the transactions that we're seeing, like you said, just a couple, that are truly H -A -H at this point.

And there's a lot of debate and discussion about what happens when it truly goes to agent and agent, and how that liability lifts or whatever it sits with. And there's some discussion about whether the AI application themselves would have liability, but you don't really see that they charge over where they're not planning for today.

It's about a

lot

of new regulations, but the fact that HEMS will make that happen, but a lot of the lines in terms of what issues are going

on

in

the environment. I'm just going to ask you, huh? Yes, I mentioned how there are other areas where we want to use their data. I don't think anybody, merchant or issuer, wants an agent to take the data from a transaction to feed the fact of this model.

You can't really use it against that merchant where that agent or that agent was downgraded. So I think data sovereignty is going to be a concern. Another thing I said earlier today about data being an asset in the liability, I kind of see that's what a liability is.

Is it the agents are taking data? Who bring it up and then using it in ways that are negative to the, or what pollution that is?

So a lot of the challenges are showing up in the customer experience. what it is and what it is and what it

is and what it is and what it is. Trying to find your approach.

We're so welcome.

We're changing, you know, customer expectations.

So, writing. Ziki, I apologize. I was getting started. I was getting started. So, I'm giving you the heads up. So, how are writing

and customer expectations actually influencing the shift towards the bottom of this experience?

So, I think that, I think as you look and you say, the way you got information before is you search for information, and then you have to filter through all of the bad information, right? And now, like, the barrier to entry is easier where you can, like a customer can go search through, you know, go search through an LLM and ask a, you know, disparate question and all of a sudden they become an expert.

And I'm giving you a great example. My brother is a great lawyer and he was researching chainsaw and he called me and he was real happy about his chainsaw. And I said, there's no world you should operate one of these and let alone no more.

Right? So, like, so I think there is this aspect of copy and a customer is very, very big service level. Right? And I think, but ultimately the end of that, what I've found, and I think you'll see too if you, you know, interact with, you know, Gemini or anything, it will tell you how to do something and then it will recommend you crocs, right?

And so I think from a customer standpoint, it becomes much easier to get to that final answer, whether it's, whether it's right or wrong or you should do it. And I think the logical next step is going to be buying one of these, right?

Or go look for the best price. So I think that customer experience is going to become a logical next step and I think that's what customers are going

to

start in the future. It's going to be logical to say, go find me the best price of this and go purchase it and ship it to them. And I think there's, and I think Rob will be doing something out there.

But they did some, they did some cool stuff recently that was in the news, which Rob mentioned, that, you know, caters towards their clientele.

Can I get back to the point? And as you're thinking your organization is telling you, you're saying that you're going to be working with the brand in here to

them spreading the bucket. And I do think you have to think of the entire spectrum. You've got the discovery, right? It's just finding these stuff. And there's one that takes a burger and takes a lot of 40 % of the target and there's a fully economy to buy.

And I think all, that whole spectrum can exist. So you're going to have to kind of hear the whole of those models. It's not like just, you know, we were just separating through our promise and so that's just something, right?

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non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non people still have a lot of issues with my plan.

So Steve, where did the agent -driven interaction, group experience, where did the interest?

Well, I think they just focused on where the group is, right? It's going to serve better options for you and less noise. To get more signal plus noise, right? But obviously the risk is going to be the country goes up and does something that the consumer swears that they didn't tell it to do, right?

And then the hard part is how to determine whether that's what's going to happen or not. So I think you're going to be on line to clear, obviously, and there's going to be a section later, the bad guy's not going to use these agents as well, commit fraud.

So the kind of thing is to try to determine the bad box for new agents is going to be a challenge for everybody.

So then let's move on to the documentation.

So how could issuers respond to changes and how customers search and browse for more? How do you think it's going to be a challenge for the customer? Yeah. Look, I think

it all comes down to the customer and it comes down to the issuer. And I think it is how does the issuer stay relevant in the customer experience, right? And I think it's going to vary. And I think it's going

to

vary by the type of issuer. We have some issuers that are the merchant as well and have their own products, right? And so I see paths where they would integrate their inventory and drive the sales to the car as they issue, right?

I think we have other customers that are aggregators of many different merchants, right? And I can see a world where they may go down and say, well, why don't I expand that and let, you know, let the customer shop across all my brands, right?

And then I think there is the more traditional issuers where the drive is going to be to make sure that your customer when they adopt the Gemini Commerce chooses your card to be top of wallet. Like at the end of the day, that's what we all want because like a wallet that started with originally a physical thing, right, a card, then it was a visual wallet on the phone and now we're going to have these Gemini Commerce wallets.

And it's really, I think, making sure that your customer when they pull the card out, they feel safe, right? That may be through issuing a virtual card, issuing a slightly different card to the Gemini Commerce. But I think we want to be, we want to be ready to ensure the customer that when you start playing the Gemini Commerce wallets that are protected, right, and usually feel good about it, that it's hard to play them out.

Yeah, yeah, well,

I,

from what

we're seeing with the AI applications and whatnot, there's basically three different ways that the checkpoints happening is like, what is said, there's all certain standards and they're kind of related to this process and they're testing the experiment and whatnot, but there's basically different ways you can be ready as an issuer to be able to have your brand used.

Firstly, is within a moment. So if you look at Google and Gemini and what's going on there, really the way that looks . So if your card's not already in the way, you need to make sure it gets in the way.

Not because things like label cards, gift cards and whatnot, we need to be able to issue tokens so that they can be able to Google . So that's number one. That's where most of them are going to be talking today.

Number two is there's redirects . So for the discovery happens to the AI application, but that's redirected back to the merchant's site application, and that's kind of a . So they're probably all set there because you're writing about business and .

and that's where you have to be able to route to your rails and card.

So that's where you're going to build those connectivity rails through the various processors that can be one of them where we can route to your label card, gift cards, to your various other programs you have. and so you need to be working out all of any of those because intellectually, this context will happen over time.

There will be more agent agent . But right now it's .

So they want

this AI becomes . What is the

?

What is

the ? I

still think everything fundamentally comes down to the issue

that the

consumer owns the customer and owns the customer relationship, right? I try to simplify things in my head. And the commerce and whatever information is going to be another channel. And I think it's our job as a technology provider, and you'll see that like .

Google for PLCC and . But then I think it is really a positioning with the customer to say, like we're on board with the jettin' commerce. We know what's going there. And I think it was mentioned in the first piece was like everyone's got to develop their own strategy on how they're going to engage their customers and ensure their customers that we have their best interest in mind.

We're looking at ways to protect them, right? And they should embrace this in a way of commerce, not . So I think this question is wrong too .

What should .

The first? Look, I think the person who mentioned, right, they have to make sure that . There's no doubt about that. And you'll see that we're investing in that. So that's . The second thing is , needs to be ready 100%.

I think there's going to be data connections coming over from merchant. There's things that we're going to need to connect with third -party data sources. I think we're also going to need to have connections where the bank can, or the financial institution can step in on a transaction and make a decision based on something they know to protect that, that product.

I think the trends of the product are going to just drastically change. And then the final piece of it still comes . So we have to ensure that however the customer interacts, they choose .

They

choose .

I would say one of the important things I'd like to do is to engage . Engage now. Don't let the agenda conference be something that happens to you. Being part of building it out. That's how we are looking at it from a personal perspective.

There are different initiatives going on trying to start to bring some standardization to this. People with MasterCard predicted a couple of their protocols to a standard setting body called a bio line. So there are some things that are not happening.

There are some amazing attempts at standardization. There are other bodies out there that are looking at it. So for those of you who are involved in organizations like X9 or the World Wide Web and Jordanian, or people like you, you, you, you, you know, they're all looking at it.

And so this is the time we made. It's still early game for five of the first inning, maybe the top of the first inning. So it's nothing set in selling. So getting through date now .

All I can talk about,

I

mean, you pull out all the merchants that are in that early group. The merchants are experimenting and trying and part of the job team team group, the Google direct type engagement, you know, the leverage that to get in with those entities and whatnot, make sure that their part can be used with them.

Make sure that you have those three in that channel starter. And then the other thing that I, the question I hear from you all is how to make sure that can be comfortable in that. And so that's by, you know, retaking those merchants and indicating those merchants to have LLMs, the AI companies, who break the technology that lets you have a bunch of messaging on what that.

For Google and UCP, they've got what they call net and flows, which lets the merchant take over the checkout experience. And so that's all you find, what you want. You can find the way you're going to the merchant site to be able to feed the flows to the checkout.

I

mean, make sure that you're letting know that, you know, 5 % back, they're using your card and everything. So you want to make sure that you're engaged with the big merchants, they're going early and then also engaging the LLMs and and test and optimize your learning as the market evolves.

So, um, forward to Q and A, I've been wanting to, I don't know, I don't know what you're going to do today. Uh, and you know, seeing how ICP is involved in the organization.

Uh, I don't know, ICP is involved in the organization. Yeah,

you've been active in this space for a little over a year. Uh, so, so even before some of the JCP announcements or whatever, building up, uh,

and

helping our merchants or wanting to read the first -party demographic, uh, and, and, and, and then, uh, with the evolution of the

market,

we've been very engaged with the, the LLMs, the water, and what not, and building out into the protocols. And so, on the merchant side, what we built basically is a multi - protocol gateway, as well. the commercial workers don't have to worry about which ones they connect to you.

And like I said, there's new ones all the time. And so, we've got to look at once, uh, into the guy, uh, the, the ACP, the UCP, the chief, the local export to the Amazon, um, and their, and their walls, and whatnot.

we're building out product discovery, so they can do central proxy for us. We'll publish it out in all the different LLMs. Uh, we'll pop -pies it, for you as well. Make sure the images are good quality, the description of the quality, that you're ranking is really good.

Um, and then the third piece is getting back to the common commerce platform, and we'll help you with that, as well as the merchant. So, uh, we're building out the tool set, uh, and that, a lot of the big portions are doing some of those things themselves, but we're, there's, what the next thing comes into, if we're able to work them as well, and also bring our program out set.

On the ACP side, and help our small -mean businesses, be able to publish out these columns as well, and then building those, as well as the enterprise -sensitive areas, as well as the, lots of activity going on, we're engaging, also the community networks, um, with the general integration, and then we're working with the Asian partners, as well as the enterprise -sensitive, to, uh, to, leverage that connection there, but, you all can be interested in.

Yeah, look, I would say, first of all,

we have relationships, uh, with, uh, open AI, so we're, uh, very much working, we're working with them on, on different things, whether we programize or development, so there's a very good working relationship, so we've plugged ourselves into what's going on, uh, from a, from an AI perspective, and the economy perspective.

Fiserv is, we're placing bets on, I would say, the, infrastructure, the connectivity, the things to make sure that we are ready, whichever direction it goes. It is going to go the direction. Uh, I think it is, still very much unknown, definitely, which way it's going to go.

So, uh, there's, uh, investments that are happening, and, we're doing some work with agents ourselves, uh, we are upgrading the product platform, we'll hear about today, we're expanding the TSP to make sure that everything is going to be, uh, in the new wallet.

we have, uh, projects underway where we're bringing merchant data over into the, uh, the product decisioning, so we're really, uh, trying to get everything ready, and make sure that everything is there when we understand that the work of corrections.

So, we've covered a lot of material in the day, but, we'd love to hear from you, and welcome to some questions, if you're going through just, commentating on, what your organizations are exploring, and, what questions you're challenging, are you liking it?

So, is that a short, that's a short, that's a short, that's a short, that's a short, that's a short, um, second, for, for our merchant partners, I have a question, um, when you think about the transaction flow, as issuers, we rely heavily on merchants looking at proper, right?

So, um, there are some merchants that look at it after, but this is a system ahead of ours that are looking at transaction activity and not being down before it comes to us. How are merchants thinking about the fact that behavioral biometric, um, transaction patterns being major change, does that have less alignment on things like that?

Um, how are they adapting to that in their part of our world? Yeah, that's a great question. And, um,

so, part of the, doing the building for the merchant side is, so, there's a whole, most of the new standards that are going out, uh, from, you know, you can

use

a master product, and what not, but also some others, uh, at the extent of the data, that are coming from an objective, common transaction, and maybe even, a burden to a objective token, and what not. So, that's the type of, like you mentioned,

that

the intent that the consumers, comparing the AI agent, about what they want to purchase, you know, uh, and what not, to kind of, there, before it gets out to the agent, the documentation, the processor is in the middle of it.

so to speak, um, and so, you know, we've got, connections out to our merchants, brought to us as well, as the merchants, and themselves, and so, the OPU, and what not, and those, and what not, and those are also, in this area.

Um, still early days, everybody who we've been talking about, but, uh, but, that's being discussed, and how we're, and what not, looking at the standards, or the, and seeing as part of the, the use of the, and the standards, and, and then also, working the flows themselves, uh, and then I think, that's the one or three, right now, it's gonna,

are going early to make sure, that the, and I think, certainly, they care about conversions, and you've heard a lot about, more conversions, on down, in some of the, and, more regrets, but also, and then, .

. . . . . .

. .

.

.!

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non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non non And that's where I think the merchant interest and issuer interest makes that work better.

The merchant, you know, I'm doing sales. They don't want to sell a lot of returns because I'm on sales. An issuer is not my deal. You can have 500 disputes and they're going to get over 7 purchase, you know, X, Y, and Z.

And I don't have a sense in my head how that gets reconciled. And I wonder if you will have the job for any issuers here.

I mean, I think the first thing that's happening is everything that's happening in the future. So we have to be still in the loop. We don't even know if you want to leave. I think that's why you have the technology.

There's a lot of people who are in place. They have to know why not. They're supposed to be over. I don't know why not. So I think it's going to be a space to check out. You may see some discrimination.

Some trials. But folks are waiting to understand .

I think

it's going to be a non -present process.

It's not going to look quite like, you know, the typical . But that's going to be . And you can go back to the agent, what the intent was, what the intent was, what evidence is there to determine who the agent is.

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I'm interested to hear if anyone is thinking about that from a visual perspective or if that's concerned.

Do we ever see the issuer getting access to the data or the intent data in a way that they can use it in some data? I know it's a little early, but we've seen that. We think that's where it's going.

I think

you'll want to get access to the dispute process. I think there may be a logical problem in trying to get that intent data into the office room. I don't think the speed of light will help that in many cases.

But unless we change the off -infraising that different fields with intent to or something in black.

David, she and I were on a call with Apple.

We were on a call with Apple. We've been trying to get some data for our issuers. I think that's the big question is how are we going to get it? Right now the networks are saying they're going to have ADI where we can call in and get the intent to get a lender.

Is it no shot? But they're not just going to free range for privacy reasons to just access the intent data to leave from all of them on and be proactive around it. So what that means though is we're trying to go around loving some of our relationships that they were saying with some of the protocols and say how can we get access to that data without having to call to the networks as a result of the chargeback.

So I think there's a lot more to come here. But right now the network's perspective is in the option all we can see is there are like, we have agents paying in here so now an hour platform down in June to tell us what an agent's transaction which we've seen on our exit platform like 2020.

So Etsy has opened up OpenAI on a summary and you can see about 20 transactions that have gone through and there's registered tokens with that card. But we're going to have so much data and then Charlotte's going to have the challenge of how to let our pool around the agents and say alright this agent has made it for three months for 500 dollars in the future, let's block that next time.

So they're going to be a lot of the users that can do all around with like free -rate letting agents go loose. We're going to have to get them out. But we're working on the issue. Second, a lot of issuers, in my opinion, it's been a conversation that's been having to purchase.

When we were at 2020 last year,

it

was like who are you talking to from issuers perspective? I thought AMAC sitting at the table right next to us. So

I

was like there's one person you're talking to here, and it's a, you know, not to say it's a traditional issuers. So I'm

going to go

ahead and

ask questions. Are there any other questions? I'm going to go ahead and ask what Michael was talking about. I'm going to go ahead and ask what Michael was talking about. What can issuers do to prepare for what is going on with the person?

You mentioned the ASDB layer. Can we assume that that's how we're going to be interacting with the person? What are the things that we're going to be doing to prepare on our side as things happen?

Okay. So on the first example of the nurses, for the three boards of check that we're talking about, how are we going to get your parts to the loop?

So that's one. Number two is, with a company agent or when it uses with a, when it needs to get a WFM adapter or a WFM handler, where it's going through the processor, the merchant. Not probably as usual, but I mean, the director for the entities to check out.

You need a connectivity layer to your, your machine essentially. So basically, I'm using a master for how we have that in the new processor. And something else, other than that, we need to make sure we're building that together, to make sure we can get your, your, your parts and whatnot.

So we're going to use those as well. And then thirdly, there's some element of an event close to the team.

There's a key kind of different waiters to check out. They're working on my,

and then also with the same thing, where they're going to allow them to check out for the student merchants anyway. We can get their close. And so that, with the event close, if you want to do things like a promotion card, if you want to call it, if there's things we can do together there, it's going to probably think of your merchant.

If they don't get the, the LLM's interest in allowing you to do that, but we should be working together, to go to those people who are tenants that are involved in the, the, the pilot, generally, basically, to go together and get them to, to a lab and for your, your parts of the person with that.

Alright. There's another question. We'll move along. Thanks very much. Next.