Agentic AI agents, autonomous agents that act on behalf of users with minimal input, are not just coming to financial services. They’re already here. One of the most compelling use cases for Agentic AI is at checkout, where commerce, AI, and payments converge at the point where consumers make their purchase decisions.

In the past few weeks, three Agentic AI shopping and checkout announcements from major payments and technology players have made news headlines. So far, Google, Visa, and Mastercard are leading the Agentic AI payments charge, with PayPal and Perplexity not far behind. Here’s a look at what each company is doing.

Google’s AI-powered shopping agents

Google announced its AI Shopping Mode yesterday, a new online shopping experience that allows users to browse 50 billion product listings and buy the item they want using Google’s new agentic checkout at a price that fits their budget. Shoppers set their preferences by selecting “track price” on a preferred product listing and set the right size, color, and the amount they want to spend. If the item’s price drops into the user’s pre-selected price range, they receive a push notification and can have the agentic shopping agent buy the item for them with the push of a button.

Google is embedding an AI assistant into every step of the purchasing process, from browsing to payment, and is making the checkout experience hyper-personal, with less friction.

Visa’s intelligent commerce and agentic AI

Visa unveiled its Visa Intelligent Commerce tool last month. The new initiative will empower AI agents to deliver personalized and secure shopping experiences for consumers at scale. The program will equip AI agents to seamlessly manage key phases of the shopping journey, from product discovery, to purchasing, to post-purchase product management.

Unlike Google, Visa will offer APIs and SDKs that will provide third parties a suite of payments tools, including tokenization, authentication, and transaction controls, to embed into their own apps. In this sense, Visa is not just planning to launch a new checkout tool, it is building infrastructure for a world where the AI agent is the end customer.

Mastercard’s agentic payments through Agent Pay

Mastercard announced Agent Pay, a payment framework for agent-driven commerce, 24 hours before Visa’s agentic AI announcement hit the wires. Mastercard’s tool aims to make payments smarter, more secure, and more personal by embedding them directly into the product recommendations generated by GenAI platforms.

When paired with Mastercard’s tokenization technology, Agent Pay will not only add security, but will also help retailers identify and validate customers to offer a more meaningful and consistent shopping experience. Overall, Mastercard is pioneering a payment model where AI, not the consumer, initiates the purchase.

Perplexity x PayPal

Earlier this month, GenAI-powered search engine Perplexity partnered with PayPal to enable in-chat shopping. Shoppers will be able to check out instantly with PayPal or Venmo when they ask Perplexity to find a product, book travel, or buy tickets. The entire process will be powered by PayPal’s account linking, secure tokenized wallet, and emerging passkey checkout flows, which could eliminate the need for passwords.

While it is not a formal “agentic” platform, the move shows that large language models (LLMs) are starting to transact directly and the partnership is a good example of how chat interfaces are evolving into commerce platforms. The announcement serves as a preview of agentic commerce where LLMs initiate and complete purchases in a single conversational flow.

Overall, these announcements signal a major shift in ecommerce. The online point-of-sale is moving from a consumer-initiated process to an AI-initiated transaction. At the outset, regulation, identity, fraud, and explainability will be a large challenge. Still, the shift to agentic commerce is well underway, and the companies building today’s infrastructure are setting the rules and structure for how agentic AI commerce will work in the future.

Credit unions are entering a new era, fueled by a combination of necessity, opportunity, and partnership. As the pace of the digital world accelerates, these community-focused organizations have increased their willingness to lean in and adopt new technologies. They are no longer simply seeking to compete with banks, but they are instead seeking to deliver the personalized, community-driven service that has always differentiated them. New fintech partnerships are helping credit unions modernize operations, meet rising member expectations, and stay resilient in a rapidly evolving financial landscape.

This collaborative approach isn’t new to credit unions, rather, it’s part of their DNA. “Credit Unions have always been collaborators,” said Ami Iceman Haueter, Chief Research and Digital Experience Officer at Michigan State University Federal Credit Union. “We’ve had to be creative and scrappy to stay relevant and competitive in a crowded market. Fintech partners are a natural fit for this collaboration. Many allow us to personalize our service or products to our members and create a custom mix of solutions to go all in for our members. That’s what we do best. Having partners that are equally committed to that vision is invaluable. It’s what will carry us forward as an industry allowing us to continue showing up for our communities.”

The environment today is ripe for credit unions to take full advantage of this collaborative mindset. The combination of heightened member expectations, accessible new technologies, and a fintech community eager to partner has created a unique moment of opportunity. Below, we’ve highlighted four key reasons why credit unions have become some of the most active adopters of fintech innovation.

Tech integration is now compulsory

Credit unions now have to engage because involvement in certain technologies has become table stakes in the banking world. Over the past few years, the baseline expectations for banking services have shifted dramatically. Real-time payments, mobile-first experiences, and frictionless, digital onboarding are no longer differentiators, they’re requirements. If credit unions want to remain competitive and retain younger members, they must adopt similar digital tools that big banks and fintechs have. In 2025, falling behind on technology isn’t just a risk to growth; it’s a risk to survival.

More credit union-specific fintechs

The fintech ecosystem has matured immensely since the first bank launched online in 1994. Today, many providers are now creating solutions designed specifically for the unique needs of credit unions. From specialized digital lending platforms to member-centric financial wellness tools, fintechs are recognizing credit unions as an important, underserved market. This tailored approach makes partnerships more attractive and accessible, helping credit unions stay up-to-date on the latest tech trends.

Embedded finance is the ultimate enabling force

Embedded finance has made it easier for credit unions to leverage third-party technologies without needing in-house technical expertise. Gone are the days when integrating new technology required a complete overhaul of a credit union’s core system. Today’s embedded banking models allow credit unions to “plug and play” fintech solutions into their existing infrastructure. Because of this, these smaller players can offer services like buy-now-pay-later, upgrade their digital account opening workflows, or launch a new mobile app with a fresh look. Overall, embedded solutions allow credit unions to deliver tech-forward experiences without the burden of in-house development.

Regulatory clarity has eased pressure

Regulatory clarity and eased regulatory scrutiny has reduced barriers to forming partnerships with fintechs. As regulators have become more familiar with fintech partnerships, clearer guidelines and frameworks have emerged to support innovation in the credit union space. New charters, sandbox programs, and cooperative frameworks help credit unions explore partnerships more confidently. With better guidance in place, credit unions can engage with fintechs without facing the regulatory uncertainty that once made these partnerships seem too risky.

All of these aspects, and more, will be on full display at FinovateSpring, which takes place May 7 through 9 in San Diego.

If you’re attending next month’s event, don’t miss a special session designed exclusively for your credit union. The Credit Union Spotlight: Closed Door Session will take place on Wednesday, May 7, from 3:20 to 4:50, and will offer the opportunity to meet companies that are building technology specifically for the credit union ecosystem. Each company will provide a short introduction, followed by roundtable discussions where you can dive deeper into their solutions. If you’re interested in joining, please email [email protected]. Please note that space is limited and subject to approval.

Want to know more about what you can expect at FinovateSpring? Check out our blog content, the event agenda, and don’t forget to register and save $200 when you book by April 18, 2025.

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Is anyone else having difficulty keeping up with all of the changes that have taken place since the new administration took office last month? Over the course of the last 18 days, sweeping shifts have reshaped regulations, agency leadership, and key financial policies— creating both uncertainty and opportunity for businesses navigating this evolving landscape.

While many of these changes will have broad implications for U.S. citizens and organizations operating in the country, I’ve distilled the most significant updates on the White House’s website impacting financial services. Below, I break down the four most critical developments that banks, fintechs, and other financial institutions need to watch closely.

Imposing a regulatory freeze

On January 20, President Trump signed an executive order to halt new rulemaking and review pending regulations across federal agencies. It also calls for the withdrawal of any rules that have been sent to the Office of the Federal Register but not published yet. The administration plans to use the pause to reassess both existing and proposed regulations so that they align with its policy objectives.

For banks and fintechs, this makes it challenging to prepare for future regulatory requirements. It may impact firms’ compliance timelines and will likely confuse financial services companies’ strategic planning efforts.

Strengthening hold on digital assets

On January 23, President Trump issued an executive order titled “Strengthening American Leadership in Digital Financial Technology.” The order prohibits the establishment of US central bank digital currencies (CBDCs). It also establishes a working group to propose a regulatory framework for digital assets within 180 days and allows individuals and entities to access and use open public blockchain networks.

This may present opportunities for banks and fintechs to engage in the stablecoin economy, especially when it comes to cross-border transactions and digital payments. Additionally, governmental protection of an open blockchain may spark the creation of new blockchain-based products and services.

Removing barriers to AI

Also on January 23, President Trump issued an Executive Order titled Removing Barriers to American Leadership in Artificial Intelligence that aims to enhance the US’s position in AI. The order removes existing AI policies and directives that are considered barriers to innovation. Within 180 days, officials are tasked with creating a plan to sustain and enhance America’s global AI dominance.

This emphasis on reducing regulatory barriers may lead to both banks and third party fintechs adopting AI technologies at a faster rate. However, as AI is a double-edged sword, the relaxed regulatory environment may create uncertainty as organizations wait for new guidelines to develop.

Implementing the DOGE workforce optimization initiative

On February 11, President Trump issued an Executive Order titled Implementing The President’s ‘Department of Government Efficiency’ Workforce Optimization Initiative, which intends to streamline the federal workforce and enhance operational efficiency. Controversially, the order gives Elon Musk and his team direct access to data held at the US Treasury Department. As a result, a coalition of more than a dozen US states is planning to file a lawsuit to block access in order to protect the personal data of US citizens.

By reducing staffing at federal agencies that oversee financial institutions, the order may impact the efficiency and thoroughness of regulatory examinations and compliance enforcement. The instability could also cause uncertainty for banks, disrupting strategic planning and compliance efforts.

Other actions

There are two other actions not yet listed on the White House’s official news release page, but each is significant.

Earlier this week, the Associated Press unveiled that the Trump administration ordered the Consumer Financial Protection Bureau (CFPB) to suspend all of its activities. Finovate Analyst David Penn reported on the details of the situation, including what the CFPB can still do and who may take over the agency if it continues to exist.

Today, the Wall Street Journal exclusively reported that the Trump administration is also considering folding the FDIC into the Treasury Department. Experts cited that this is unlikely to transpire, however, as Congress is unlikely to pass such a measure. “This idea would pose an enormous risk of terrifying Americans about the safety of their deposits and triggering bank runs,” Former Federal Regulator Patricia McCoy told CNN.

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With only a few weeks to go until 2025, it is time to take a look at some of the trends we can expect to see more of in the next 12 months. There are a handful of topics that seem to be dominating the conversation in fintech as we wrap up 2024, and here’s what you’ll need to know as we head into 2025.

Crypto

I have to apologize for this one, because I know that many readers don’t want to hear anything about crypto. It does, however, need to be considered.

Why it’s big: After a dip and many volatile few years, crypto is entering a more mature phase. The conversation is no longer just about Bitcoin and speculative trading. Instead, we’re seeing increased institutional adoption and clearer regulatory frameworks emerging across the globe. With this, major players are poised to enter (or re-enter) the crypto space, which positions crypto as no longer a fringe technology, but a part of the financial ecosystem.

What you need to do about it: If you haven’t already, now is the time to educate yourself and your organization about crypto. Go beyond the basics and evaluate how blockchain technology might be relevant to your own operations. Also, stay informed about regulatory changes, as they are sure to change as crypto continues to evolve.

Stablecoins

This technically fits into the crypto category, but it deserves a highlight all on its own because of the potential. Stablecoins are a type of cryptocurrency pegged to a fiat currency or a commodity, such as gold.

Why it’s big: Stablecoins bridge the gap between the volatility of traditional cryptocurrencies and the stability of fiat currencies. They have been successfully used in cross-border payments, remittances, and payroll for global workforces because they enable instant payouts at rates much cheaper than funds sent via traditional banking rails.

What you need to do about it: Organizations operating in payments should investigate the costs and benefits of integrating stablecoins into their offerings. In particular, if your firm services businesses with international clients or cross-border supply chains, you should explore how stablecoin adoption could help service your commercial clients.

Open banking/ Section 1033

For U.S. readers, open banking made its debut in the form of a CFPB ruling in October of this year. Firms with the largest assets have until 2026 to comply, and those with assets between $10 billion and $250 billion have until 2027. There may be benefits to early compliance.

Why it’s big: The new open banking rule shifts data ownership from the financial institution to the individual consumer. This shift creates more opportunities for innovation, improved transparency, and more personalized services. The U.K. and Australia, which are early leaders when it comes to open banking, have already proven that giving consumers control over their own data is beneficial to multiple parties.

What you need to do about it: Even though some firms have until 2027 to prepare, start preparing now, as you may need to invest in infrastructure upgrades such as developing new APIs. Early compliance could give you a competitive edge by offering you time to create new products and services tailored to your customers.

Honorable mentions

Condensing fintech down into three topics does not capture the widespread nature of the industry, so here are some honorable mentions.

Agentic AI
You may notice I did not include AI, which is a notoriously hot topic, among the top three trends. That is because the industry has finally moved beyond talking about AI as the technology to implement, and now considers it as the enabling technology that it is. Agentic AI, however, has its own role to play, especially in wealth management and back office automation. AI that can act independently to make decisions based on customer preferences or operational needs will play a large role in shaping fintech’s future.

BNPL
With Klarna’s IPO taking place in 2025, we can expect to see interest in the BNPL space surge to new heights. However, it won’t reach 2020 levels because questions about regulation and profitability remain, especially as interest rates vacillate. However, BNPL continues to evolve with new players entering the space and existing ones expanding into adjacent markets like subscriptions and services.

Regtech
The ongoing fallout from the Synapse failure has created a renewed focus on regulatory compliance. Banks are rethinking their regtech strategies, while new regtechs are leveraging tools such as large language models and GenAI to meet demand for automated compliance tools and fraud detection solutions.

Real-time payments
The adoption of real-time payment systems has been gaining momentum across the globe, especially since the launch of the Federal Reserve’s FedNow service in 2023. While more businesses and consumers are slowly becoming accustomed to instant transactions, banks have shown hesitancy to send real-time payments.

Pay-by-bank
In many ways, pay-by-bank goes hand-in-hand with open banking, which is fueling the growth in pay-by-bank. Direct, bank-to-bank payments are popular with merchants because of the lower fees and faster settlement times. Consumers, however, may be hesitant to use pay-by-bank unless they receive a monetary incentive at the point of purchase.

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FedNow, the U.S. Federal Reserve’s instant payment service went live in July of 2023. Now, 15 months later, adoption rates have been unpredictably slow, especially when it comes to banks that are able to send FedNow payments.

Before considering the challenges behind sending and receiving FedNow payments, here’s a look at some of the data behind adoption rates:

• Only around 900 financial institutions have connected to the FedNow network, a fraction of the 8,000 firms the Fed stated as its goal.
• Close to 60% of the financial institutions on board with FedNow can receive payments, while only 40% of firms have signed up to send payments.
• Banks connected to the FedNow network range in size from under $500 million to more than $3 trillion in assets.
• Of the FedNow participants, 78% are community banks and credit unions.

There are a handful of reasons why firms might be hesitant to participate in FedNow. The service faces competition with The Clearing House’s RTP platform, which was launched well before FedNow went live. Additionally, banks may be holding back because of the fees that come with participating in FedNow. Banks must pay $25 per month per routing transit number to use the service, plus a $0.045 per credit transfer fee charged to the sender and a $0.01 per RFP message, charged to the requestor. The Fed also charges a liquidity management fee of $1 per transfer.

Another reason firms may be reluctant to join FedNow is that the new payment rail comes with a set of challenges for both sending and receiving payment. Below, I’ve outlined five challenges financial institutions face for accepting FedNow payments, and five challenges they face when receiving FedNow payments, along with strategies to overcome each obstacle.

Challenges in accepting FedNow payments

1. Transaction validation in real time
Firms may have difficulty validating incoming payments instantly, especially considering the need to check for insufficient funds and fraud, plus ensure compliance, all in real time.

To combat this, firms can implement automated validation systems to check the accuracy, authenticity, and compliance of payment transactions in real time. They can also use AI tools for fraud detection to help banks validate transactions without human intervention. Additionally, they should enhance their AML compliance systems to conduct rapid checks.

2. Managing customer disputes
Customer disputes are always a headache when facilitating payments. And with instant payments, customer disputes can be even more of a challenge. That’s because instant payments reduce the time that dispute resolution can take place, since the funds are transferred immediately.

Banks should create dedicated customer service channels and clearly communicate the dispute resolution process to consumers. Additionally, banks should create robust communication procedures with other banks in the FedNow network in order to resolve reversals and other issues quickly.

3. Handling a high volume of payments
If the adoption of FedNow grows, banks will need to process higher volumes of payments as more customers use the new payment rail. This increase could strain legacy systems– especially if they are not optimized for 24/7 processing at high volumes– and ultimately lead to payment delays.

To overcome this, banks should scale their payment processing infrastructure by adopting cloud solutions and ensuring they have sufficient bandwidth to handle high transaction volumes, especially during peak times.

4. Ensuring compliance in real time
Just as they do with ACH payments, banks need to ensure they are complying with regulatory requirements, including KYC, AML, and other regulations. This is an additional challenge with FedNow payments, since the compliance checks and documentation need to be made in real time.

Banks can leverage automation for compliance checks and integrate real-time monitoring tools into their operations to ensure that incoming payments are compliant without delaying the transaction. As with all compliance training, firms should ensure that their compliance officers’ training is up-to-date. Fortunately, there are multiple regtech solutions, including ComplyAdvantage, Trulioo, and Fenergo, available to help.

5. Creating a seamless user experience
In today’s digital age, consumers are not only used to receiving things instantly, they expect it. With instant payments as the standard, any delays or issues in receiving funds could create a poor user experience and tarnish the bank’s brand.

To ensure the best user experience, banks should first invest in a user-friendly interface. Transparent and timely communication is also key. Firms should offer real-time notifications and ensure that customers have easy access to their transaction history.

Challenges in sending FedNow payments

1. Ensuring adequate liquidity
With the recent increased scrutiny on adequate liquidity, it is essential that banks ensure they have enough funds on hand. With instant payments, banks must have sufficient liquidity available at all times, even during weekends and non-business hours.

To overcome this, firms can implement real-time liquidity monitoring systems and use the Federal Reserve’s liquidity management services. Banks should also establish internal controls to maintain and managing their liquidity reserves effectively.

2. Maintaining 24/7 availability
This may be one of the biggest headaches for banks looking to send FedNow payments. Because FedNow operates 24/7, banks need to ensure they have adequate infrastructure and staffing to support continuous operations. This can be a particular headache for smaller institutions, which lack resources to support such uptime.

To keep up with availability requirements, banks can adopt automated processing systems, use cloud-based solutions to keep their operations scalable, and partner with third-party vendors who offer 24/7 payment support. Additionally, firms should conduct regular system maintenance during non-peak hours to ensure they are not disrupting operations.

3. Ensuring fraud and security protection
Just as when receiving instant payments, accepting instant payments does not leave banks much time to identify and stop fraudulent transactions. This increases the risk for loss.

Banks can add a layer of protection by deploying real-time fraud monitoring systems to detect suspicious activities using AI and machine learning. Also, firms can implement advanced consumer authentication methods and mandate ongoing fraud prevention training for staff to further mitigate risks.

4. Managing customer payment errors
With instant payments, there is not much time to correct mistakes. When consumers fat-finger the payment amount or send the funds to the wrong recipient, they lose the opportunity to correct errors. This could not only create customer dissatisfaction, but also lead to financial losses.

Fortunately, there are ways to mitigate such mistakes. Banks can add confirmation steps into the user interface that require users to verify payment details before the transaction is sent for processing. It is equally as important to educate customers about the finality of real-time payments and provide them with a clear process for dealing with errors.

5. Creating interoperability with other payment networks
As with other payment rails, banks need to ensure their systems are compatible across other systems. Banks should create a system that is not only compatible with FedNow, but also with other real-time payment systems, including The Clearing House’s RTP.

To ensure compatibility, banks can invest in unified payment platforms that integrate multiple payment rails. Additionally, firms may find it helpful to participate in industry-standard development efforts to help shape the conversation around compatibility and functionality.

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