J.P. Morgan Payments’ Michael Lozanoff on why agentic commerce can’t scale without governance

AI agents are moving closer to making actual purchases on behalf of consumers. This shift, known as agentic commerce, will change how your customers interact with financing at the point of sale. Michael Lozanoff of J.P. Morgan Payments highlights that the future of retail isn't just about smart AI bots. It is about the 'trust infrastructure' that allows these bots to authorize payments and credit applications securely. For retailers, this means you will soon need to handle transactions where an AI, not a human, chooses the payment method based on pre-set preferences. Governance is the main hurdle right now. Banks are working on systems to ensure that when an AI bot selects a Buy Now, Pay Later (BNPL) option or a specific credit card, it is doing so within the customer's legal and financial boundaries. You should prepare for a landscape where your checkout flow must be compatible with automated decision-making. If your financing options aren't easily readable or accessible by these agents, you risk being skipped over in the automated path to purchase. The goal is to create a seamless link between merchant systems and the financial identity of the consumer.

Source: Tearsheet

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