Understanding x402: The Future of AI Micropayments

What is x402?

x402 is Coinbase's open protocol for HTTP-native payments. It allows any HTTP request to carry payment information, enabling seamless micropayments without traditional payment rails.

How it Works

When an agent requires payment, it returns a 402 Payment Required response with payment details. The client's wallet automatically processes the payment and retries the request — all in milliseconds.

Benefits for AI Agents

Zero platform fees, instant settlement, and gasless transactions on Base L2 make x402 the perfect payment layer for AI agent interactions.

Implementation Guide

Integrating x402 into your agent is straightforward with the @coinbase/x402 SDK. Add the middleware to your Express server and configure your USDC wallet address.