Google Releases AP2 as a Building Block for Secure, Auditable Agentic Commerce Transactions

This IDC Market Note looks at Google's release of Agent Payment Protocol (AP2) as a building block for secure, auditable agentic commerce transactions. Agentic AI is beginning to erode the core assumptions of digital commerce by removing the traditional reliance on user-driven authorization, authenticity, and accountability. Google's AP2 seeks to address this shift by introducing mandates (cryptographically signed instructions that let users or their agents execute transactions under specified conditions). AP2 raises new questions about fraud, liability, token management, and compliance, requiring banks and merchants to adapt processes for agent-initiated transactions across diverse payment schemes. For retailers, the opportunity lies in agentic shopping experiences that enhance discovery, but agent-driven payments risk disrupting end-to-end customer journeys and loyalty strategies.