Visa integrates its payment network into ChatGPT for AI-powered commerce

Payments giant Visa has embedded its network inside ChatGPT, allowing the chatbot to shop and complete transactions independently on behalf of users in a move that marks a significant expansion of AI-powered commerce.

The tie-up means AI agents can not only recommend products but complete purchases at any merchant that accepts Visa. Previous attempts at this kind of technology had been confined to a single retailer or a small set of enrolled merchants.

OpenAI will provide the technology allowing agents to interact, make decisions and initiate purchases through ChatGPT. Visa, the world's largest payment network outside of China, will handle payment authorisation and fraud monitoring.

"As AI agents become active participants in the economy, Visa's focus is to ensure transactions are trusted, secure and seamless," said Jack Forestell, the company's chief product and strategy officer.

How would it work?

Speaking at a company event in San Francisco on Wednesday, Forestell gave the example of a customer asking ChatGPT to find wireless headphones under $150 (€136). The chatbot would find a suitable pair and buy it on the customer's behalf.

Users would link their Visa cards to ChatGPT to enable shopping, with guardrails including spending limits, required approval steps and a list of approved merchants to protect consumers and minimise fraud.

Forestell said Visa would handle disputes using the same rules it applies to any other transaction, such as making sure that the consumer intended to make the purchase and whether the merchant processed it correctly.

It is not OpenAI's first attempt at e-commerce. The company launched Instant Checkout late last year, allowing ChatGPT to scour the internet for specific items. But the feature was prone to errors, was not widely adopted by merchants who balked at a 4% transaction fee and was retired in March.

Visa and OpenAI did not disclose the financial terms of the new arrangement or detail any fees for merchants or customers.

Will people trust it?

Forestell acknowledged it will take time for consumers to fully trust AI agents to handle their shopping. He expects most early transactions to still require human approval, with agents sending notifications before completing a purchase.

"I think we're generally at a place where most people are very comfortable with the shopping aspects of it," he said, adding that making the leap to autonomous purchasing "just requires a whole different level of trust."

Visa's biggest rival, Mastercard, has also been developing its own AI shopping features, though on a smaller scale.

Its offering targets businesses rather than consumers, allowing AI agents to procure services such as advertising on a company's behalf.