Digital Transactions Authoritative, insightful and timely information for payments professionals
The growing prominence of agentic commerce has raised questions about the potential for fraud in these transactions, and in particular the problem of verifying who is behind the agents. Now, technology is emerging to address that question.
In one example, Boston-based Notarize Inc., which does business as Proof, introduced on Thursday technology called x401. The protocol, which Proof says is open and issuer-neutral, allows Web sites and APIs to ask for and verify who is behind the agents. The agent is then expected to present a credential and authorization. In this way, x401 combines identity with authorization, Proof says.
Such technology may grow into a pressing need, observers say, as the issue of identity in agentic commerce becomes more critical with the growth of the AI shopping tool.
The protocol is an open one, Proof says, which “allows any conforming issuer to deliver x401-compatible credentials [while] any agent can present them.” It’s up to payments services to decide the claims, issuers, and extent of assurance they find acceptable, the company says.
Proof has been developing technology to fight AI-related fraud for some time. Last year, it launched Certify, which allows users to cryptographically authorize a digital signature on a wide array of content, including legal agreements and tax returns.
Agentic commerce has rapidly developed from its original pilots. U.S. business-to-consumer sales volume through agents could reach $1 trillion by 2030, according to projections from McKinsey. Over the same time span, global sales could reach $3 trillion to $5 trillion, the research firm projects.
