Glossary

Definition

x402 Protocol

An open payment protocol that uses HTTP 402 Payment Required to enable pay-per-call API transactions for AI agents.

x402 is an open protocol that builds on the HTTP 402 Payment Required status code — a code reserved since HTTP/1.1 in 1997 but never widely adopted. When an API server returns a 402 response, x402-compatible clients automatically read the payment requirements from response headers (price, token, chain, payment address), sign a USDC transaction on-chain, and retry the request with a payment receipt. This turns any API into a pay-per-call service without requiring API keys, subscriptions, or pre-registration. The entire flow — request, payment, retry — typically completes in under 2 seconds.