VGS is a contributor and the Client Enabler for card transaction types in Machine Payments Protocol (MPP).
It is increasingly clear that AI agents need secure payment credentials and will likely turn to existing, trusted modalities (such as corporate cards). To make this a reality, we must find ways to securely hand those card details to agents without compromising data integrity. VGS is the leading tokenization platform selected by merchants and card networks to implement agentic payment specs, including Visa Intelligent Commerce and Mastercard AgentPay.
What is the Machine Payments Protocol?
The Purpose of MPP is simple: Empowering AI agents to pay, and merchants to get paid in the method they want.
The Machine Payment Protocol (MPP) enables seamless transactions by allowing merchants to use their preferred payment methods, including cards and stablecoins. For card-based payments, MPP enables AI agents to securely transmit credentials to merchants without ever exposing sensitive, raw card data to the agents themselves.
How does VGS fit into the Machine Payment Protocol?
In this new MPP ecosystem, roles are shifting. Here is how VGS fits into the "Machine Payments" endpoint and architecture:
- The Client Enabler (VGS): VGS is acting as the "Client Enabler." In the technical flow, we occupy the role of the "Card" or the “Token Service Provider (TSP).”
- The Wallet Service (Visa): In our current implementation, Visa is the only MPP wallet service. They utilize our vaulting infrastructure to handle the heavy lifting of security and tokenization.
- The Agent (Claude/LLMs): The AI agent (driven by code from providers like Claude or Codex) orchestrates the flow. It never sees the raw credit card data, ensuring the highest level of security.
THE TECHNICAL FLOW: FROM WALLET LOAD TO PAYMENT
The beauty of the Machine Payments endpoint is how it abstracts complexity while maintaining security.
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Collection and Tokenization
The Wallet renders a web form that allows VGS to collect card details directly. These are tokenized and stored securely in our Vault. As part of MPP, VGS will create tokens that grant Agents access to Cards. This means that VGS:
- allows Agents to collect payment details without exposing Agents to sensitive user data and descopes legitimate Agents from PCI Compliance
and - can help merchants identify Agents that subsequently request a payment
- allows Agents to collect payment details without exposing Agents to sensitive user data and descopes legitimate Agents from PCI Compliance
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Instruction
The merchant instructs the AI agent on their preferred payment method: "I want to be paid with a card" or "I want to be paid via cryptocurrency." Note that when the merchant gives those instructions, they will include their encryption key.
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Tokenization
The agent sends the Card ID created in step 1 along with the the merchant's encryption key to the VGS /cards/{card_id}/machine-payments API. In this step, VGS issues the Network Token and a Cryptogram for the transaction and encrypts the payment credential details using the merchant's key. If the card is unable to get access to a Network Token, VGS can encrypt the PAN, CVC and expiration details with the merchant key. With this model, only the merchant can get access to the actual payment credentials.
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Handoff
These tokens are sent to the merchant (or their preferred Payment Service Provider). The merchant can then decrypt the payload on their own servers, or decrypt the payload using a VGS Inbound or Outbound Route, much like an Apple Pay transaction, and proceed to process the payout.
Why This Matters: Security
Because VGS safely collects and stores the cards, the AI agent is never exposed to raw card details. The merchant gets the security of a network token, the agent gets the ability to complete tasks autonomously, and the user gets the peace of mind that their financial data isn't being "read" by an LLM.
Looking Ahead
As the premier client enabler for the MPP protocol, we are looking forward to the future: by providing plumbing for the protocol today, we ensure that in a world full of autonomous agents, merchants and agents will have a secure and verified way to settle the bill.
We are very proud to be a day one enabler of MPP alongside other payment leaders. In addition to our contribution to MPP, VGS acts as a universal payments translation layer and an early contributor to protocols like VIC, ACP, Agent Pay, and many more. Regardless of the protocol or payment method, VGS is the platform of choice for Agents and Merchants alike. We are excited for what the future holds for Agentic Commerce and can't wait to see what you build.
