Google and Coinbase will allow stablecoin payments in AI applications, aiming to automate transactions between AI agents and stores. The agreement uses Google’s Agent Payments Protocol (AP2) and Coinbase’s x402 protocol to coordinate agent-driven purchases and on-chain settlements. The move affects developers, stores that take USDC, and API platforms that monetize services.
How the protocols work
Experts say AP2 works as a standard for AI agents to pay securely and with the user’s wish, requiring two approvals: an “intent mandate” that shows the wish to buy something and a final confirmation. This two-step flow reduces unauthorized transactions and has attracted partners such as PayPal, Mastercard along with Shopify, which experts say shows a push toward business adoption.
Coinbase adds x402, which uses HTTP status code 402 (“Payment Required”) to enable on-chain payments through HTTP calls. The protocol supports a repeated request flow with a signed payment and exposes a service index — x402 Bazaar — for agents to find APIs that take small payments in stablecoin. Experts say this helps with instant payments in USDC, chain agnostic support, and real-time ways to earn money.
Regulation, risks, and market impact
Experts discuss AML/sanctions and fraud dangers tied to stablecoin use, citing regulatory plans such as the GENIUS Act in the U.S. and a stablecoin bill in Hong Kong. The plans require 1:1 reserves and licenses for issuers, aiming for openness but potentially raising barriers for providers and issuers. Practical deployment will need strong KYC/AML checks to stop misuse and satisfy supervisors.
The integration could speed up stablecoin use in e-commerce and APIs, giving stores global reach with lower transaction fees. Experts state sub-second settlement figures and fees from 0.1% in tests related to Base, while traditional processors charge 2–5%. For users, automation by agents brings ease but also operational and privacy risks. Important points remain that AP2 needs two approvals (intent and confirmation), while x402 enables small USDC payments via HTTP 402 and lists services through x402 Bazaar, suggesting lower fees and probable adoption by stores and APIs.
Coinbase has launched x402 and x402 Bazaar, and Google has presented AP2, according to experts. The next step will be use by developers as well as stores, alongside the regulatory response to AML and custody dangers. The outcome will show whether AI agents become safe channels for automated payments or whether regulation slows their release.
