Cloudflare and Coinbase Launch x402 Foundation to Revolutionize Online Payments
Two tech titans just declared war on payment friction.
Cloudflare and Coinbase are joining forces to launch the x402 Foundation—a move that could finally make crypto payments as seamless as tapping a credit card.
The Infrastructure Play
This isn't another payment processor. The foundation builds protocol-level solutions that cut settlement times from days to seconds. It bypasses traditional banking rails entirely.
Why This Changes Everything
Online merchants face 3% payment processing fees—a tax on digital commerce. The x402 framework slashes those costs while eliminating chargeback fraud.
The Cynical Take
Because what the world really needs is another foundation—unless this one actually delivers on crypto's decade-old promise of frictionless payments.
Watch what happens when infrastructure companies attack a problem banks deemed 'too hard.'
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The web infrastructure leader Cloudflare, along with the cryptocurrency exchange Coinbase, announced the launch of the x402 Foundation to simplify payment processes for automated agents on the web. The x402 Foundation seeks to update the HTTP 402 Payment Required code, establishing a standard payment protocol between websites and digital agents.
ContentsHow Does the x402 Protocol Work?The Roles of Cloudflare and CoinbaseHow Does the x402 Protocol Work?
The x402 protocol facilitates the management of payment processes without needing an account, subscription, or API key. When a user or agent requests access to a resource, they receive a 402 response from the server, which includes payment instructions. Once payment authorization is completed, verification occurs, granting access to the requested content.
Coinbase is enhancing transaction FLOW for x402 while Cloudflare is incorporating integration tools into its Agents SDK and Model Context Protocol (MCP) infrastructure. This integration enables AI assistants to make one-time purchases, browser-based agents to perform per-session payments, and autonomous investors to acquire real-time data streams through micro-payments.
Moreover, Cloudflare proposed a deferred payment model for x402. This model offers delayed collection and bundled billing, creating an ideal structure for subscriptions and bulk transactions. Future stages are planned to support various payment methods, such as credit cards, bank accounts, and stablecoins.
The Roles of Cloudflare and Coinbase
Cloudflare manages an average of 78 million HTTP requests per second through its data centers in over 330 cities worldwide. The company aims to provide a more secure and flexible payment infrastructure for websites and applications using the x402 protocol.
Coinbase will leverage its expertise in stablecoin infrastructure for this initiative. The company facilitates rapid and secure payments between agents, businesses, and users through the x402 protocol, marking a new era in financial interactions for AI-based systems.
The collaboration between these companies will revive the fundamental internet protocol HTTP 402, contributing to the widespread adoption of new micro-payment solutions in the digital economy.
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