Santander and Mastercard Pioneer AI-Powered Payments in Europe
Banco Santander and Mastercard have successfully completed Europe’s first live end-to-end payment executed by an artificial intelligence (AI) agent, marking a significant step towards the integration of AI in financial transactions. The transaction, completed on Monday, March 2, 2026, represents the first agentic payment carried out within a regulated banking framework [Mastercard], [Fintech Magazine].
The First Agentic Payment in a Regulated Environment
This milestone signifies a shift in how financial institutions may manage transactions initiated by non-human actors. The pilot program utilized Mastercard Agent Pay, a solution launched in mid-2025 designed to integrate AI agents into the financial ecosystem as governed participants [Fintech Magazine]. The transaction was processed through Santander’s live payments infrastructure, validating the operational and control frameworks necessary for AI systems to act on behalf of customers in real-world conditions.
Autonomous Transactions with Built-in Safeguards
The core of the trial focused on agentic capabilities, allowing AI agents to execute payments within predefined limits and permissions set by the account holder. This ensures customer oversight through robust security, privacy, and protection standards [Fintech Magazine]. The orchestration of the transaction was supported by PayOS, facilitating interaction between issuers, acquirers, and merchants.
Industry Perspectives on the Future of AI in Payments
Matías Sánchez, Global Head of Cards and Digital Solutions at Santander, emphasized the transformative potential of AI in payments, stating, “At Santander, we see AI as a transformative force in the evolution of payments. Our role is not only to adopt innovation, but to shape it responsibly, embedding security, governance and customer protection by design.” [Fintech Magazine]
Kelly Devine, President for Europe at Mastercard, highlighted the profound shift in commerce initiated by agentic payments [Independent].
Looking Ahead: Scaling AI-Driven Payments
Mastercard anticipates that one-third of enterprise software applications will incorporate agentic AI by 2028, with a significant percentage of customer interactions and operational tasks being supported by AI agents by 2030 [Fintech Magazine]. Santander will proceed with extended testing and scaling, maintaining strong controls, resilience, and regulatory alignment. The initial pilot involved the purchase of a T-shirt in Spain and does not represent a full commercial rollout at this stage [Independent].
Potential Applications of Agentic AI
The development of agentic AI opens possibilities for automating purchases with minimal consumer input. For example, an AI agent could manage purchases by reviewing loyalty rewards and identifying optimal options based on a user’s preferences [Independent].