MYOB and Mastercard have piloted AI-driven payments for small and medium-sized businesses in Australia, in what they describe as an Australian first.
The pilot tested agentic payment tools that let business owners set rules for which bills to pay, when to pay them, and which payment method to use. The model combines Mastercard's Agent Pay with MYOB's business software and remains in testing.
Both companies are targeting a long-running problem for smaller businesses: cash flow management. MYOB cited its Business Monitor research, which shows that 27% of small business owners and operators face extreme cash flow pressure, while ASIC has reported that 52% of small business failures stem from inadequate cash flow or excessive cash use.
The trial examined whether AI-led transaction handling could reduce the administrative burden on owners, who often manage finance tasks alongside sales, marketing, and operations. The system is intended to help businesses stay on top of bills while retaining oversight of payment decisions.
Cash flow focus
The model could apply across a wide range of businesses, from sole traders to larger SMEs. It is part of a broader relationship between the two companies and follows MYOB's recent rollout of Open Banking services to customers.
The key question is how far businesses will trust software to handle payment decisions on their behalf. Mastercard said its work on agent-driven payments centres on security, visibility, and control as automation becomes more common in business processes.
Sally Davies, General Manager of Solo and Embedded Payments at MYOB, said the company sees demand for tools that ease day-to-day financial management without removing business owners from the decision-making process.
"Cash flow is king for SMEs, but for many business owners, staying on top of bills and payments happens alongside every other job they do in a day. When you are effectively the CEO, CFO, head of marketing, and everything in between, seamless systems that support the flow of money can make a real difference. MYOB wants to take away the pressure of financial management, making it easier to oversee this critical part of business operations without the extra effort.
"That is why we are excited to collaborate with Mastercard on this pilot. By combining AI with payments technology and integrating this innovation with our insight-rich business management platform, we can help SMEs make more informed decisions about what to pay, when to pay it, and which payment method best suits their needs, while keeping them in control.
"This is about taking friction out of financial admin and giving business owners back time and headspace to focus on running and growing their business," Davies said.
Testing phase
The initiative is still at an experimental stage, with the ecosystem for agentic payments continuing to develop. That leaves open questions around standards, user safeguards, and how widely such systems can be adopted across accounting and payments platforms.
Mastercard framed the pilot as part of a wider shift towards automated commercial activity, but stressed that trust will be central if smaller businesses are to rely on software agents for routine transactions.
"As we move towards more automated ways of doing business, trust and transparency become critical. Mastercard is embedding security, visibility, and control into agent-driven payments, helping give small businesses the confidence to adopt these capabilities and better manage their cash flow," said Surin Fernando, Senior Vice President of Customer Solutions Centre, Australasia, at Mastercard.
MYOB provides business management software across Australia and New Zealand to customers ranging from sole operators to firms with up to 1,000 employees, as well as accountants, bookkeepers, and consultants. The latest pilot shows how financial software providers and payment networks are exploring AI not just for analysis and forecasting but also for executing routine money movements within agreed parameters.
For small businesses, the appeal is straightforward: fewer manual payment tasks and tighter control over when cash leaves the business. For the companies behind the pilot, the challenge will be proving that automated payments can be introduced without weakening transparency or owner control.
ASIC's finding that 52% of small business failures are linked to inadequate cash flow or high cash use underlines why payment timing remains a sensitive issue for smaller firms.