After Passkeys, FIDO Turns to Digital Identity and AI Transaction Authentication

Following the successful implementation of passkeys for online authentication, the FIDO Alliance and payment industry leaders are addressing the complexities of AI agent transactions. As AI agents increasingly conduct purchases, new standards are needed to verify the scope of authority users grant and to define responsibility when problems arise. This shift was a central theme at the Authenticate U.S. 2026 conference.

Mastercard is developing "Verifiable Intent" as a technology to link a user's identity, their specific purchase instructions, and the subsequent actions taken by an AI agent. Jonathan Grossar, Senior Vice President at Mastercard, explained that this aims to prove an agent's actions were consistent with the user's explicit intent, even if the user is not present at checkout. Mastercard is testing prototypes, with features still under development as part of ongoing standardization efforts with the FIDO Alliance and EMVCo.

Nishant Kaushik, CTO of the FIDO Alliance, emphasized that trust in these systems is an outcome, not just a technical feature. He cautioned that easier authentication could prompt businesses to request more personal data, potentially limiting user consent. Digital identity systems must also ensure accessibility and establish clear accountability for incidents, requiring cooperation among governments, businesses, and standards organizations to evaluate technologies by real-world outcomes like reduced fraud and unnecessary data sharing.