x402 by Coinbase: Changing How AI and Apps Pay Online

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x402 by Coinbase: Changing How AI and Apps Pay Online

Written by Aaron S.,

Editor-In-Chief

Last Updated: May 07, 2025

Key Takeaways

Coinbase’s x402 allows apps, websites, and AI programs to make stablecoin payments through the standard HTTP web protocol;
x402 revives the unused "402 Payment Required" code, which makes online payments as easy as sharing data;
The tool gives AI agents more autonomy and helps developers and creators offer flexible, usage-based payment options.

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x402 by Coinbase: Changing How AI and Apps Pay Online

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On May 6, the cryptocurrency exchange Coinbase $2.09B announced a new payment tool called x402.

This system allows apps, websites, and artificial intelligence (AI) programs to make stablecoin payments directly over the internet using the standard web protocol, HTTP.

Coinbase designed x402 to revive a rarely used part of HTTP called the "402 Payment Required" code. By updating this feature, x402 makes it possible to send and receive payments as easily as sharing data online.

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The goal is to help both people and AI agents pay for services in a quicker and more efficient way. Erik Reppel, co-author of the x402 white paper and head of engineering at Coinbase Developer Platform, explained:

We’re laying the groundwork for an economy run not just by people, but by software — autonomous, intelligent, and always on.

One of the key benefits of x402 is to give AI agents more freedom, so they can pay for what they need, such as data access, computing power, or other services, without waiting for humans to top up credits or manage accounts.

For developers, x402 offers a way to charge users based on how much of a service they use. This could replace flat-rate subscriptions or credit card minimum payments. Content creators may also benefit by receiving stablecoin payments without relying on broad subscription models.

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