The Electronic Payments Association (EPAA) and HSBC have launched a new working group focused on artificial intelligence and agentic payments in the Asia-Pacific region. The group aims to establish standards for liability, identity, and interoperability in autonomous AI-driven payment systems.
Why standards matter for AI payments
As AI agents increasingly handle transactions without human oversight, the question of who's responsible when something goes wrong becomes urgent. The working group will tackle liability — determining whether the bank, the AI provider, or the user bears the cost of a mistaken payment. Identity is another core issue: how do you verify that an AI agent is authorized to act on behalf of a person or business? Interoperability ensures that different banks and payment platforms can process AI-initiated transactions smoothly. Without common rules, the region risks a patchwork of incompatible systems.
Who's behind the initiative
EPAA is a payments industry body that represents a wide range of financial institutions across APAC. HSBC, one of the world's largest banks, brings deep experience in cross-border payments and digital innovation. Their collaboration signals that both industry groups and major banks see a need for coordinated standards. The working group will include representatives from both organizations, though the exact membership list hasn't been made public.
What's at stake for the region
APAC is a hotbed for digital payments, with countries like Singapore, Australia, and Japan pushing hard on AI adoption. But the legal and technical frameworks haven't kept pace. The working group's focus on liability, identity, and interoperability could shape how regulators across the region approach AI payments. If the group succeeds, it might provide a template for other markets grappling with the same issues.
The group has not yet announced a timeline for its recommendations. Its first task will be to map out the current landscape of AI payments in APAC and identify the biggest gaps. That work will likely take months, given the complexity of the issues involved.
