Coinbase is reviving a long-dormant protocol for online payments, aiming to establish a fully automated payments layer that operates without human intervention.
The HTTP 402 ‘Payment Required’ status has existed as part of the internet architecture for decades but remained unused—until now. Coinbase’s new x402 protocol transforms this 402 status code into a functional payment layer. It allows any server to request payment, enabling clients (whether human or automated) to respond with digital currencies like stablecoins such as USDC.
The company points out that conventional payment systems, such as credit cards and bank transfers, were designed before the internet era. These systems involve numerous manual steps that hinder the operational autonomy of AI agents.
Coinbase explains, “By enabling API and context providers to monetize without needing human-in-the-loop configuration, x402 eliminates a significant barrier to agentic autonomy.” This means agents can now pay for each API call without requiring human involvement or complicating payment management for every integration.
Erik Reppel, head of engineering at Coinbase Developer Platform, stated, “We’re laying the groundwork for an economy run not just by people, but by software—autonomous, intelligent, and always on.”
Coinbase joins other companies, including Visa, Stripe, Mastercard, and PayPal, in developing an autonomous payment framework to leverage the increasing adoption of AI in commerce.