Artificial intelligence is moving closer to executing real financial transactions, as Banco Santander and Mastercard test what is believed to be Europe’s first AI-driven payment within a regulated banking environment.
Banco Santander and Mastercard have carried out what is believed to be Europe’s first payment executed by an artificial intelligence agent within a regulated banking environment, highlighting how AI could reshape the future of digital commerce.
The test transaction demonstrated how AI systems can initiate and complete financial payments on behalf of customers while operating within established banking controls and compliance frameworks.
The pilot used Mastercard’s Agent Pay technology, introduced in 2025 to enable AI agents to interact with payment networks as authorised participants in the financial ecosystem.
To simulate real-world conditions, the transaction was processed using Santander’s live payments infrastructure, allowing both organisations to validate the governance, monitoring, and security controls required when AI systems perform financial actions.
AI Agents Enter the Payments Ecosystem
The concept behind the pilot centres on agentic payments, where AI-driven systems are given permission to conduct transactions under clearly defined parameters set by the customer.
These AI agents can perform tasks such as initiating purchases or completing payments automatically, while built-in safeguards ensure transactions remain within authorised limits and maintain strict security and privacy protections.
The payment workflow was coordinated through PayOS, which manages interactions between merchants, issuing banks, and acquiring institutions to ensure the transaction moves smoothly across the payment network.
Matías Sánchez, Global Head of Cards and Digital Solutions at Santander, said artificial intelligence will play a critical role in the next phase of payments innovation.
He noted that financial institutions must balance technological progress with strong governance frameworks to ensure that AI-enabled services remain secure, reliable, and trusted by customers.
Preparing for AI-Powered Commerce
Following the successful trial, Santander plans to expand its experimentation with AI-driven financial services, exploring additional use cases and partnerships to support the development of autonomous payment technologies.
The bank will continue to test these capabilities while ensuring alignment with regulatory standards and operational safeguards.
The pilot reflects the growing momentum behind AI-assisted financial services, where intelligent systems could eventually help customers manage purchases, subscriptions, and financial decisions automatically.
Key takeaways
- AI agents are beginning to actively execute payments, not just assist users
- Banks are testing AI within strict regulatory and compliance frameworks
- Agentic payments could redefine how transactions are initiated and managed
- Security, governance, and trust will be critical for widespread adoption
- The payments industry is shifting toward automation-led digital commerce
