Credit unions are on the brink of a significant transformation in the payments ecosystem due to agentic AI, which allows autonomous software agents to handle transactions. According to Elizabeth Wadsworth from Velera, this paradigm shift requires a total redesign of current payment and chargeback systems. Unlike traditional payments initiated by humans, these AI agents can autonomously authorize purchases, manage budgets, and even dispute charges, raising new security concerns such as agent compromise and prompt manipulation. Wadsworth stresses the need for new identity verification mechanisms focused on the agents themselves, rather than consumers alone. As regulatory frameworks lag behind, credit unions must adapt quickly to ensure robust security against emerging threats. The transition to agentic payments is projected to accelerate within the next two to three years, making it imperative for institutions to rethink their authentication and liability strategies now.
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