Mastercard’s plan to own the bot-to-bot economy

This article summarizes an episode of Analyse Asia’s video series featuring Ling Hai, regional president of Mastercard.

Ling Hai, president of Asia Pacific, Europe, Middle East, and Africa at Mastercard / Photo credit: LAJF

Mastercard recognizes that stablecoins and AI are reshaping the future of payments, according to regional president Ling Hai. Consequently, the company is realigning itself, integrating traditional finance with decentralized systems (DeFi) and preparing for a future where AI agents conduct autonomous commerce.

The brand is not the business

The company’s name suggests a function that doesn’t align with its actual business. This perception masks its position in the financial world.

The name hides its role as a network
Hai clarifies, “one thing most people don’t really understand is we don’t issue cards. We don’t extend credit. We do not charge interest”. Instead, “Mastercard is a network that helps different payment systems work together and creates a universal acceptance for payment methods”.

He noted that how Mastercard makes money isn’t solely from payments but also includes services such as online security, data insights, consulting, and loyalty, adding that these areas are becoming increasingly important for their revenue base.

Two financial universes will coexist

This tech-first identity is how the company plans to get involved with the rise of decentralized finance, or DeFi, which uses blockchain for transactions without traditional banks. The future isn’t seen as a replacement of the old system but a hybrid of the two, and Mastercard aims to be the bridge connecting them.

The company is betting on a hybrid future
Hai argues that the “probability of both universes coexist is much higher than the entire world being replaced by the DeFi universe,” meaning “You’re still going to need some bridge between the two”.

Mastercard positions itself as that vital link, especially for “physical merchants” who generally “don’t live in the DeFi world”. Facilitating “off-ramp” capabilities, allowing crypto balances to be spent via Mastercard cards, is one way they bridge this gap.

However, Hai observes that DeFi’s current primary use is still “mostly investment,” acknowledging “it’s still a long way to actual payments”.

The changing world and its built-in risks

Beyond new financial platforms, the nature of a transaction itself is changing.

• Commerce is evolving from physical interactions to digital e-commerce, and now to autonomous, AI-driven transactions.
• Failure to adapt to new financial and technological systems means being controlled by them.

Yesterday’s fraud is tomorrow’s standard transaction
Current network rules often decline transactions identified as non-human: “if you detect this transaction is done… by a bot, decline”. Hai observes, “Tomorrow that algorithm isn’t going to work anymore because AI programs will be making choices and also making payments”.

Need for new standards
Preparing for this future requires establishing new protocols now. Hai emphasizes the need to work with partners to “set new rules and standards” covering how agents pay, how data is exchanged, how the “feedback loop” is closed, and what dispute processes like “chargeback look like”. This involves revisiting and redesigning a “whole set of new rules”.

Steps towards running future commerce