Key facts
- The x402 protocol is an open-source payment standard for internet-based transactions.
- It is designed to enable direct payments between AI agents, machines, and users via HTTP.
- Premier members of the x402 Foundation include Visa, Mastercard, American Express, and Stripe.
- The initiative aims to create an open, public, global financial system.
- The project is being developed under the auspices of the Linux Foundation.
An open-source project is underway to establish a new internet payment standard that would allow artificial intelligence programs to transact directly with each other and with users. The x402 Foundation, a group of major financial and technology companies, is leading the effort to create a protocol that facilitates payments via the standard internet language HTTP.
Denelle Dixon, CEO of Stellar Development Foundation and a member of the x402 Foundation, highlighted the importance of avoiding "walled gardens" in financial transactions, drawing parallels to the early internet. The goal is to enable a truly open, public, and global financial system accessible to everyone, particularly for the micro-transactions that AI agents are expected to facilitate.
The x402 protocol, initially shepherded by cryptocurrency exchange Coinbase, aims to overcome the limitations of traditional card payments that made micropayments unworkable. Alin Dragos, Senior Manager at AWS Payments and board chairperson for the x402 Foundation, explained that the project complements HTTP by providing a mechanism for exchanging value, not just information. The foundation has established a technical steering committee and is searching for an executive director, with a growing membership base indicating positive early momentum.
Dixon also noted that AI agents do not respond to advertising, suggesting a shift towards a one-off payment model for content. While blockchain has provided the underlying payment infrastructure, the agentic capabilities of AI are seen as the key to unlocking its widespread use for transactions.