The article discusses x402, an open payment protocol by Coinbase that enables instant stablecoin transactions using the previously unused HTTP 402 code. This protocol allows websites, APIs, and AI agents to process payments without intermediaries, making microtransactions feasible and efficient.

Stripe has introduced the x402 protocol for charging AI agents directly with USDC on the Base network. This allows developers to use Stripe's PaymentIntents API to manage transactions for AI-related services, while simplifying crypto integration with existing payment systems.

This article analyzes x402 transactions primarily using USDC on the Base blockchain. It examines the roles of various participants, including clients, servers, and facilitators, and highlights the emerging competitive landscape among payment systems and their implications for automated commerce.

Coinbase has introduced the x402 protocol, transforming the long-unused HTTP 402 status code into a payment layer that enables AI agents to autonomously process payments without human intervention. This innovation facilitates a more efficient system for digital transactions, allowing servers to request payments and clients, including AI agents, to respond using stablecoins like USDC. Other major companies like Visa and PayPal are also exploring similar autonomous payment solutions for AI-driven commerce.