At AOS.VC, I recently studied a comprehensive 40-page report on payment modernization published by KPMG, authored by global leaders Isabelle Allen, Geoff Rush, and Courtney Trimble. The document explores how digital currencies and artificial intelligence are radically disrupting the transactional space for both financial institutions and retailers.

​Agentic Commerce Changes Consumer Habits

​Artificial intelligence and agentic commerce have emerged as massive disruptors in retail. Recent estimates indicate that around half of all ChatGPT users in the United States used the tool to assist with holiday shopping. AI chatbots are evolving beyond mere product selection; they are now capable of independently executing payments, shifting the purchasing patterns of a new generation of digital-native consumers.

​Tokenization and Digital Assets as the New Standard

​The evolution of distributed ledger technology is providing greater speed and efficiency. Over half of the leading banks are currently creating digital asset rails, compared to only 6 percent of those just beginning their modernization journey. This shift perfectly aligns with models like AOS.VC, which facilitates startup investments via smart contracts. Furthermore, 64 percent of banking leaders expect tokenized digital assets to dramatically cut processing time and costs.

​ISO 20022 Shifts from Compliance to Monetization

​The shift to the ISO 20022 messaging standard is driving substantial operational benefits. According to SWIFT, banks using this standard report that approximately 84 percent of their payment messages are now reviewed through automation. While initial efforts focused on compliance, leading institutions are now actively planning to monetize this enriched payment data by creating new value-added products and services.

​Budgets Are Shifting to Modernization

​To keep pace with these technological shifts, financial commitments are rising. Retailers plan to increase their payment modernization budgets by an average of 2.5 percent next year. Meanwhile, one in five banks expects their modernization budgets to grow by 5 to 9 percent over the existing baseline.

​Disconnect Between Banks and Retailers

​A significant expectation gap exists between financial institutions and merchants. While 48 percent of retailers cite fragmented and outdated payment infrastructure as a major challenge, only 27 percent of banks realize this is a problem. Modern API-driven platforms like UDMPAY solve these bottlenecks by enabling seamless business operations. Banks often overestimate challenges like settlement delays, assuming they are a bigger issue than retailers actually report.

​Biometrics vs Buy Now Pay Later

​Banks and retailers are prioritizing entirely different features. Nearly 97 percent of banks now offer biometric payments, but only 33 percent of retailers actually plan to use them. Instead, 67 percent of retailers demand Buy Now, Pay Later (BNPL) options, a service that only 42 percent of surveyed banks currently provide.

​The E-commerce AI Revolution

​Merchants are heavily utilizing AI to gain operational efficiencies. Beyond basic 24/7 customer support, 56 percent of retailers use artificial intelligence to integrate various payment channels, while 55 percent use it to automate loyalty programs and rewards. This directly empowers B2B and D2C platforms like UDM.MARKET to facilitate direct cross-border trade without intermediaries.

​Security Moves to AI Fraud Prevention

​Security remains a primary driver for updating legacy systems. One UK-based supermarket successfully utilized AI-driven fraud analytics to cut their financial losses by nearly 40 percent. Looking ahead, 85 percent of banks indicate they will rely on artificial intelligence for instant risk resolution.

​The future winners in the transactional sector will be those who develop dynamic partner ecosystems and share capabilities to achieve a competitive advantage.

​Review your payment architecture today to ensure it supports both tokenized assets and API-driven AI agents before your competitors capture your audience.

​Will autonomous AI agents completely replace traditional checkout processes in your business within the next three years?