Payments giant Visa said Wednesday that it has embedded its payment network inside of ChatGPT, empowering the chatbot to independently shop and complete transactions on behalf of its user.

It means AI agents can not only recommend products but complete the purchase on the user’s behalf, at potentially any merchant that accepts Visa. The payment network’s previous attempts at this technological leap were confined to a single retailer or a small set of enrolled merchants.

It is not OpenAI’s first attempt at e-commerce. The company late last year announced Instant Checkout, which allowed ChatGPT to scour the internet for a specific item like a digital personal shopper. But the process was prone to errors and was not widely adopted by merchants due to the fee that OpenAI was charging merchants. The company retired Instant Checkout in March.

Visa’s collaboration is different from OpenAI’s previous attempts, as it will allow users to link their Visa cards to ChatGPT to shop and make it easier for merchants to accept transactions initiated by agents.

OpenAI will provide the technology to allow agents to interact, make decisions and initiate purchases through ChatGPT. Visa, the world’s largest payment network outside of China, will provide the payment authorisation and fraud monitoring needed to do this at scale.

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

Speaking at a company event Wednesday in San Francisco Wednesday, Forestell gave an example of a customer telling ChatGPT they’re looking for a pair of wireless headphones under $150. The chatbot would find a pair for sale under those parameters and buy it on behalf of the customer.

Visa and OpenAI did not disclose the financial terms of the collaboration and did not give details on the fees merchants or customers would have to pay.

Instant Checkout charged merchants 4 per cent of the transaction’s value, which merchants saw as being too expensive.

Allowing AI agents to buy products on behalf of a consumer raises concerns for both banks and retailers. A customer could overspend, or the agent buys the wrong item, or the customer claims they did not authorise that transaction. Banks have been concerned about potential fraud claims that could occur when an agent uses a bank customer’s credit or debit card.

Visa says the feature will have guardrails like spending limits, required approval steps and approved merchants for shopping in order to protect consumers and minimise fraud.

Retailers have introduced shopping assistants powered by AI that can recommend products and personalise the customer’s shopping experience, with the earliest iterations of those experiments being Amazon’s Alexa. But Alexa could only shop on Amazon, and OpenAI’s Instant Checkout feature was limited to select merchants.

Visa’s biggest competitor, Mastercard, has also been introducing its own AI-shopping features to its payment network on a smaller scale.

Mastercard announced that AI agents will have the capability to procure services on behalf of a business. For example, a coffee shop wants to start an advertising campaign as part of a launch, so it gives an AI agent the authorisation to purchase services from web and ad providers in order for the coffee shop to build out its campaign.