HSBC & EPAA Launch AI & Agentic Payments Working Group in APAC

HSBC and the Emerging Payments Association Asia (EPAA) have announced the formation of a joint AI & Agentic Payments Working Group. This initiative aims to establish common standards for agentic commerce, particularly focusing on AI agents, throughout the Asia Pacific (APAC) region Source.

Agentic commerce involves autonomous software agents that can conduct transactions on behalf of users or businesses. This development is particularly relevant for the APAC market, which is projected to be the fastest-growing region globally for agentic commerce, with a compound annual growth rate (CAGR) of nearly 45% through 2031.

Setting the Standards for Future Payments

The newly launched working group will bring together a diverse range of participants. This includes banks like HSBC, payment networks, fintech innovators, and technology platforms. Their collective goal is to define core standards for agentic commerce.

Key areas of focus for the group include:

• Agent Identity and Authentication: Developing common standards for how AI agents are identified and verified within transaction systems.
• Authorization Frameworks: Establishing clear protocols for authorizing transactions conducted by AI agents.
• Trust and Liability: Creating frameworks that define responsibility for actions taken by AI agents, which is crucial for building confidence in this new commerce model.

Driving Business Viability and Scalability

Beyond technical standards, the working group will also tackle the business and commercial aspects of agentic commerce. This includes developing viable business models and commercial frameworks designed to make agentic commerce scalable for all participants.

This focus on commercial viability is critical. It ensures that the technical advancements can translate into practical, profitable applications for fintechs, banks, and other businesses operating in the payments space.

Regulatory Engagement Across APAC

Another important aspect of the working group's mandate is coordinating engagement with regulators. They will work with authorities across both the Association of Southeast Asian Nations (ASEAN) and the Asia Pacific Economic Cooperation (APEC).

This regulatory coordination is vital for ensuring that new agentic payment systems comply with existing laws and privacy regulations, and for influencing the development of future policies that support innovation while maintaining security and consumer protection.

Opportunities in a Growing Market

The APAC region's projected growth in agentic commerce highlights the potential for businesses to leverage this technology. Establishing clear standards early on can help accelerate adoption, reduce fragmentation, and foster a more secure and efficient environment for AI-driven transactions.

For business leaders and marketing executives, understanding these foundational developments is crucial. Early engagement and strategizing around these emerging standards could position companies to capitalize on the expected growth in autonomous payment systems.

The collaboration between a major financial institution like HSBC and a payments industry body like the EPAA underscores the industry's commitment to systematically developing the infrastructure for the next generation of digital commerce.