Coinbase Unveils x402: A Revolutionary Internet Payment Protocol for AI Agents and Web Services

Coinbase Breathes New Lift Into Long-Forgotten Web Payment Code - Decrypt

It also targets AI agents that previously couldn't navigate traditional payment systems. Since the early days of the internet, HTTP 402, a payment status code that showed "Payment Required," has existed as a placeholder in web protocols. It was a digital relic that once promised an internet with built-in payment capabilities but was never fully realized. Three decades later, crypto exchange Coinbase, through its Developer Platform, has brought it back to life with x402, a new, open-source protocol that creates a native payment layer for the web. "Imagine a future where crypto is the default to pay for anything," Nemil Dalal, lead developer at Coinbase's Developer Platform, said on X. Launched on Tuesday, the new protocol enables users to make payments without registration, emails, or complex signatures. "We've architected it in a way where it works for any blockchain," Dalal claimed. x402 uses the older HTTP 402 payment status code to let clients, whether human users or AI agents, know that they need to pay up. They could then authorize a stablecoin payment request. Once the server verifies the signature, it broadcasts the transaction to a blockchain and provides access to the content or API, based on a request. Asked about possible security loopholes, Erik Reppel, head of engineering at Coinbase Developer Platform, told Decrypt that a "built-in verification step" was included to protect "against replay attacks and ensure each request is securely paid for." On its whitepaper, Coinbase developers claim x402 would remove "account and billing friction from payments" and enable "true pay-per-use access without subscriptions, prepaid credits, or manual invoicing." But while x402 opens prospects, the tech behind it could face bottlenecks once adopted for a wider audience. Those interested in adopting x402 would need to iron out implementation, Nader Dabit, director of developer relations at EigenLayer, explained to Decrypt. Given a scenario where a user encounters an x402 payment request without a compatible crypto wallet or stablecoin balance, Dabit noted potential issues. "This would just error out and the developer would have to take it into account in their application flow," Dabit explained. In response to questions on usability, Coinbase's Reppel claims things have improved. "We believe crypto finally delivers a user experience that rivals, and even surpasses, traditional options," he said. Despite the possible challenges to security and user experience, the new protocol addresses a bottleneck in AI-driven finance and commerce. "Giving agents access to external context and APIs is a high-friction process, with lots of manual configuration that prevents agents from autonomously accessing external services," Coinbase Developer Platform said in a tweet. With a single line of code, x402 could transform how AI agents operate on-chain and eliminate outdated payment models. Coinbase Developer Platform also said it plans to further decentralize x402's roadmap, inviting community contributions to "create an open standard to drive forward agentic finance."

Coinbase x402 payments protocol to make AI agents more autonomous

The x402 protocol could transform AI agents from tools that require constant human interaction into autonomous economic actors. Coinbase has introduced a new payments protocol for online payments that enables stablecoin transfers over standard internet protocols and AI agents to transact autonomously. On May 6, Coinbase announced that it is launching a protocol called x402 for instant stablecoin payments directly over the internet communication protocol HTTP (Hypertext Transfer Protocol). It allows Application Programming Interface (APIs), apps, and AI agents to transact seamlessly, "unlocking a faster, automated internet economy," the firm stated. Coinbase said that x402 "is fixing the internet's first mistake." The protocol resurrects the experimental HTTP 402 "Payment Required" status code to create a seamless payment system native to the internet. The firm noted that traditional payment rails, such as credit cards, bank transfers and subscriptions, "were built for a pre-internet world." They're slow, expensive, geographically limited, and "riddled with manual steps," it added. However, x402 embeds stablecoin payments directly into web interactions, requiring minimal code integration, and is designed for both humans and AI agents to transact value as easily as exchanging data. The head of engineering at Coinbase Developer Platform and co-author of the x402 white paper, Erik Reppel, said, "We're laying the groundwork for an economy run not just by people, but by software -- autonomous, intelligent, and always on." Related: Coinbase sees first crypto transaction between AI agents Gagan Mac, vice president of product management at Circle, said x402 "elegantly simplifies real-time monetization" and unlocks "exciting new use cases like micropayments for AI agents and apps." Coinbase is launching the new protocol in partnership with AWS (Amazon Web Services), stablecoin issuer Circle, AI company Anthropic and AI-focused proof-of-stake layer-1 blockchain Near Protocol. AI agents can achieve economic autonomy by independently transacting without human intervention. The protocol enables AI agents to access paid resources in real-time based on their needs and eliminates dependency on pre-paid credits, API keys, or human-managed accounts. AI agents can also provision and pay for hardware resources in real-time, access specialized data sources through micropayments, and pay other AI systems for services. The x402 protocol essentially transforms AI agents from tools that require constant human interaction into autonomous economic actors that can independently discover, purchase and utilize resources to accomplish their goals. Developers can use the protocol to monetize APIs, create software unlocks and enable metered services that dynamically charge users based on actual resource usage, while content creators can monetize their content without the need for blanket subscriptions or credit card minimums and fees.

Coinbase unveils internet payments protool for AI agents

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community. HTTP 402 'Payment Required' has been a part of the internet's blueprint for decades, but it was never used. Coinbase's new x402 protocol turns this 402 status code into a real payment layer -- letting any server request payment, and any client (human or agent) respond with digital dollars in the form of stablecoins like USDC. The firm notes that traditional payment rails, such as credit cards, bank transfers and subscriptions, were built for a pre-internet world and are riddled with manual steps that make it difficult for AI agents to act alone. "By enabling the API and context providers to monetize without requiring human-in the loop configuration, x402 removes a key bottleneck to agentic autonomy," states the company. "Agents can now pay per API call -- no human intervention, and no more managing payments for each integration." The head of engineering at Coinbase Developer Platform, Erik Reppel, says: "We're laying the groundwork for an economy run not just by people, but by software -- autonomous, intelligent, and always on." Coinbase is not alone in looking to create an autonomous payment layer for agentic commerce, with Visa, Stripe, Mastercard and PayPal all recently introducing their own models for capitalising on the rise of AI.

Coinbase Debuts x402 for Internet-Native Stablecoin Payments | PYMNTS.com

Coinbase introduced a way to streamline internet-native stablecoin payments. The cryptocurrency exchange's x402 is an open standard that employs the original HTTP "402 Payment Required" status code to embed stablecoin payments into web interactions, according to a Tuesday (May 6) press release. "The internet economy has always struggled with payments," the release said, adding credit cards and bank transfers were designed "for a pre-internet world." "There is a need for a more modern approach -- one that supports autonomous AI agents, the rise of stablecoins and generally enables instant, frictionless payments native to the internet itself," the release said. Coinbase's x402 allows developers and AI agents to pay for APIs, services and software directly with stablecoins over HTTP, offering built-in authentication, automatic settlement and integration into existing web infrastructure, per the release. "We built x402 because the internet has always needed a native way to send and receive payments -- and stablecoins finally make that possible," said Erik Reppel, head of engineering at Coinbase Developer Platform and co-author of the x402 white paper. "Just like HTTPS secured the web, x402 could define the next era of the internet; one where value moves as freely and instantly as information." Stablecoins "were supposed to be crypto's killer app," although their journey has been more complicated, PYMNTS reported last month. "On one hand, there's an acceleration in the development of stablecoin infrastructure," the report said. "Circle's launch of a stablecoin orchestration layer aims to make stablecoins 'invisible' [by] moving money across borders, across blockchains and into the hands of consumers without them needing to understand the underlying tech." Financial institutions are engaging in experimental projects along with real investment and product launches. There are also efforts to meld the cash and crypto worlds, as exemplified by the partnership between CompoSecure and MoneyGram. However, "merchant adoption is lagging," the report said. "The reasons [include] regulatory uncertainty, concerns about fraud and reversibility, technical integration hurdles and the simple inertia of established payment methods. There's also a user experience gap. Most people are not clamoring for change, especially if it's more complicated than swiping a card."

Meet x402 -- Coinbase's Payment Fix for APIs, Apps & AI Agents

Tech moves fast, and the options to integrate blockchain into everyday life keep growing. In a move to streamline web-based payments, particularly for artificial intelligence (AI) and applications, Coinbase announced its x402 protocol on May 6, a tool designed to let apps, Application Programming Interface (APIs), and AI agents send and receive stablecoin payments instantly, without credit cards, subscriptions, or manual setup. Built on the long-unused HTTP 402 status code, x402 turns web requests into payment channels using stablecoins, particularly USDC, which Circle and Coinbase developed. This article explains x402, how it works, and why it could power the next wave of real-time, automated commerce across the Internet. What Is x402? The Revival of HTTP 402 'Payment Required' The early web creators expected online content to cost money someday, and they were right. They reserved HTTP status code 402, "Payment Required," as a placeholder for digital cash or microtransactions to be used sometime "in the future". Coinbase points out that for decades, this code stayed unused. No browser or website ever turned it into a real payment tool. The internet had a built-in payment slot, but no one has activated it. With x402, that long-unused status code finally has a role. It becomes a real payment layer, allowing any server to ask for payment and any human or machine client, including AI agents, to respond instantly with digital assets, particularly stablecoins. How x402 Enables Autonomous AI Payments When a client, like a browser, app, or AI agent, requests a paid resource, the server responds with an HTTP 402 "Payment Required" status. The message includes the price, supported payment methods (such as USDC), and the destination wallet. x402 removes the need for prepaid credits, API keys, know-your-customer (KYC) checks, or manual payment setups. The steps are below: AI agents can pay per API call without human help with this automated process. The protocol allows AI agents to access services, data, and hardware independently. Benefits for APIs, Apps, and Developers Some of the key benefits of the x402 protocol for APIs, apps, and developers are the following: Monetize with Micropayments Developers can charge users per request using stablecoins. Building a billing system, managing accounts, or handling invoicing is unnecessary. The protocol allows each interaction to become a paid transaction, clean, fast, and direct. Offer Flexible Access Apps and APIs can move beyond subscriptions and credit cards. With x402, users or AI agents pay only when they use a service. It supports dynamic, metered pricing without forcing anyone into a monthly plan. Simplify Payment Integration x402 works directly with standard HTTP, so developers do not need to learn new tools or build custom infrastructure. A few lines of code can enable payment support using stablecoins. The protocol is open-source and available on GitHub , making it easy to plug into any web-based product. x402 vs Traditional Payment Rails According to Coinbase, "by embedding payments directly within HTTP, x402 makes previously impractical microtransactions effortless -- transforming everyday digital interactions for humans, automated scripts, and autonomous agents alike, bridging today's web seamlessly to tomorrow's decentralized digital economy." Traditional payment systems like credit cards and bank transfers pften come with high fees, delays, and manual steps. They do not support real-time automation or machine-to-machine payments. AI may not be individuals, at least not yet, but they can still act as users. x402 makes payments instant, borderless, autonomous, and user-friendly for AI-driven systems. Coinbase says x402 aims to fix what it calls the internet's "first mistake" -- leaving payments out of the web's core infrastructure. The company describes the protocol as a way to make on-chain payments simple and frictionless. https://twitter.com/CoinbaseDev/status/1919784746881577239 According to Coinbase, x402 opens the door to new forms of agentic commerce, including pay-per-use APIs, content access, and automated transactions between apps and AI agents. The Bigger Trend: Agentic Payments and the AI Economy All of them are chasing real-time, automated systems with the latest available blockchain technologies. Coinbase positions x402 within that shift. Erik Reppel, a protocol engineer at the company, compares x402 to HTTPS, the layer that secures the web. He says x402 could define the next phase of the internet, where value moves as freely as information. In that future, software becomes a user too, "autonomous, intelligent, and always on" powering a new layer of economic activity. Is x402 the Future of Internet Payments? The potential use cases are wide-ranging. Coinbase says x402 enables things like automatic creator payouts, per-article payments, and AI-to-AI transactions. The company describes a future where creators earn per minute viewed, news sites monetize individual articles instantly, and AI agents buy cloud resources on their own -- all powered by simple, onchain payments sent directly over HTTP. x402 combines speed, autonomy, and ease of integration. Payments happen instantly, without credit cards, KYC checks, or third-party processors. Developers need only a few lines of code to embed stablecoin payments into any app, website, or service. The protocol is built for an internet driven by both people and machines. As automation grows, x402 gives AI agents the power to pay for services in real time and helps apps adopt usage-based models instead of fixed subscriptions. However, it's important to note that x402 has not been implemented at scale. While the vision is compelling, broader adoption will depend on developer uptake, regulatory clarity, and real-world testing. Conclusion x402 brings payments to the web layer that always needed them. It makes transactions fast, direct, and built for both humans and AI. With stablecoins like USDC, developers can skip credit cards, logins, and delays. Apps, APIs, and agents pay per use, in real time. As the internet shifts toward automation, x402 looks ready to power the next phase and finally have a relevant role in a future where software can integrate with the user.