Payments are set for a major transformation in 2026, according to new research from Mastercard, which says advances in artificial intelligence, digital identity and blockchain technology will fundamentally change how people pay and move money.
The report highlights faster, more secure and more personalised transactions as the outcome of a wave of innovation driven by smarter infrastructure, regulatory clarity and deeper collaboration across the financial ecosystem.
Mastercard says generative AI is entering a new phase through the rise of agentic commerce, where AI agents help manage transactions on behalf of consumers and businesses. After emerging in 2025, these systems are set to expand rapidly next year as the industry introduces safeguards to authenticate AI activity, reduce fraud and ensure people can override or correct unintended actions. Automation may increase, the report notes, but trust will remain essential.
Digital currencies gain trust
Cryptocurrencies are also expected to play a more integrated role in mainstream payments. Regulatory clarity around stablecoins in the United States and Europe has created confidence for financial institutions to adopt and commercialise the technology.
Mastercard forecasts smoother payouts to stablecoin wallets, simpler cross-border settlements and broader access to on-chain purchases of stablecoins and bitcoin.
Digital identity is becoming increasingly important as online activity grows and fraud attempts rise. Mastercard’s research shows that 80 per cent of global consumers were targeted by a scam last year. Digital ID wallets will help people verify their identity more securely when accessing financial, government and commercial services, including age-restricted products.
Verified aliases for crypto transactions are expected to reduce fraud linked to complex wallet addresses. Expanding these services into developing markets could support financial inclusion.
Circular commerce goes digital
Shifting consumer habits are influencing payment innovation too. Mastercard notes that younger generations are accelerating the circular economy through reuse, repair and resale. Payment systems will evolve to support this with micro-transactions and fast peer-to-peer payments that make refill models and deposit-and-return schemes simpler. Retailers could benefit from lower packaging costs and stronger customer loyalty.
Payment personalisation is also expected to advance. Consumers will be able to set rules for how they want to pay, choosing credit for major purchases and debit for everyday spending. Small businesses and individuals with thin credit histories may also gain improved access to finance through advanced analytics and permissioned open finance data.
The instant economy is set to gather pace. Biometric checkout is likely to become more common in shops, tokenisation will move online commerce closer to frictionless one-click checkout and new tools will enable real-time clearing and same-day settlement.
With global cross-border payments expected to exceed US$250 trillion by 2027, Mastercard anticipates a rise in alias-based remittances and faster, more transparent international money transfers.
Mastercard says these six trends represent a pivotal shift in global commerce. Payments are becoming more intuitive, integrated and secure, and 2026 is shaping up to be a defining year in the evolution of how the world interacts with money.