The U.S. Payments Forum announces the publication of a new white paper, “Contextual Payments Considering Artificial Intelligence, 5G, and Internet of Things,” examining how these converging technologies are reshaping commerce and payment experiences.
Contextual payments allow transactions to occur automatically within the flow of an activity without the consumer initiating a traditional checkout process by leveraging stored payment credentials, contextual triggers, and prior consent. This model underpins emerging agentic commerce, in which AI “agents” can make purchases on behalf of consumers, anticipating needs and preferences. According to recent analyst predictions, agent-driven experiences could lift global e-commerce conversion by 1.5–2.5% annually, unlocking over $240 billion in incremental retail revenue. This is one of many areas of opportunity for contextual payments.
In this white paper, the Forum outlines how the combination of AI, 5G, and IoT creates the infrastructure for contextual payments across a range of environments. This includes retail, mobility, smart homes, healthcare, entertainment, infrastructure, and business services. Together, these technologies can support seamless payments in scenarios such as AI-enabled IoT devices reordering supplies or services without user input, connected vehicles paying for tolls, and many other use cases.
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The resource also explores:
- How AI-driven decisioning, high-speed 5G connectivity, and IoT device ecosystems enable contextual payments and agentic commerce.
- The critical role of consumer control, regulatory compliance, and identity management in ensuring trust in contextual payment scenarios.
- Implications for merchants, issuers, processors, and consumers in areas such as interoperability, infrastructure readiness, and cost.
- How programmable money (stablecoins) and smart contracts could streamline multi-party contextual transactions.
“People often lead fast-paced lives, and they are looking for ways to speed up day-to-day commerce. Contextual payments address this by shifting the act of paying from the consumer to the infrastructure,” said Christina Hulka, executive director of the Secure Technology Alliance, parent organization to the U.S. Payments Forum. “We’d like this resource to show payments stakeholders how combining AI, 5G, and IoT can deliver transactions that are faster, more secure, and more aligned with how people live and work.”
The white paper was developed by the Mobile and Touchless Payments Working Committee. Organizations, associations, government agencies and individuals interested in participating in upcoming Forum projects can visit the Secure Technology Alliance website to learn how to become a member. By joining the Secure Technology Alliance, members will have access to activities within the U.S. Payments Forum and additional Alliance-affiliated organizations.
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