Coinbase has unveiled the x402 protocol, a new initiative supported by Cloudflare, Visa, and Google, aimed at revolutionizing internet payments. The protocol leverages the HTTP 402 'Payment Required' status code to facilitate seamless, low-cost, and automated transactions using stablecoins like USDC. This development is particularly targeted at AI agents and API services, promising to streamline payment processes. Several AI-focused projects, including PayAI Network, Daydreams, and KITE AI, have already announced their integration with the x402 protocol. This collaboration marks a significant step towards transforming the internet's payment infrastructure, potentially setting a new standard for digital transactions.