Google Enters AI Payment Wars With Stablecoin Support

Google has stepped into the competitive arena of AI-powered payments with its new Agent Payments Protocol (AP2), which supports both traditional payment methods and stablecoins. This strategic MOVE places the tech giant in direct competition with Visa and Mastercard, as the stablecoin market surges to $5.7 trillion in 2024, with a 66% quarterly growth in early 2025.

The protocol addresses a critical trust issue: ensuring AI agents have legitimate authority to spend users' funds. Google's solution employs digital "mandates"—tamper-proof contracts that verify user authorization for specific transactions. James Tromans, Google’s head of Web3, emphasized the system's dual compatibility with legacy payment rails and emerging digital currency capabilities.

Over 60 companies, including American Express, Mastercard, PayPal, and Coinbase, collaborated on the protocol. The system enables both instant purchases—like finding and buying WHITE running shoes after user approval—and pre-programmed transactions, such as snapping up concert tickets the moment they're listed under preset spending limits.