What is the x402 payment protocol?

x402 revives HTTP 402 so AI agents can pay for APIs per request in USDC — no accounts, no API keys. TRM Labs analyzed $52.7 million across 198.9 million x402 settlements (September 2026, per the page's sources) and estimated only 0.6% to 7.5% of the value looked agentic. Coinbase launched it in 2025; the Linux Foundation stewards it.

x402 is an open payment protocol that revives the long-dormant HTTP 402 "Payment Required" status code so software — especially AI agents — can pay for APIs per request, in crypto like USDC, with no accounts, no API keys, and no checkout pages. When a client calls a resource without paying, the server answers 402 with exact machine-readable payment terms; the client signs a payment authorization and retries the same request; the server settles it on-chain and returns the resource with a payment receipt. Launched by Coinbase in 2025 and stewarded by the Linux Foundation.

Live receipt — this is not theory. ScriptMasterLabs runs a production x402 v2 contract you can inspect right now: curl https://squeezeos-api.onrender.com/api/marketplace returns the payment terms: protocol x402-v2, network eip155:8453 (Base), asset USDC, one-time listing fee 0.01 USDC, buyer sends the payment signature in the PAYMENT-SIGNATURE header and gets the settlement receipt in PAYMENT-RESPONSE. Receiver: 0x5bbd32e0478e49a7540ef2d760e0b0f9aa6328b2. (Verified live September 22, 2026. Cached page text is never the payment authority — the fresh 402 challenge is.)

What is the 4-step x402 flow?

Four steps: request, 402 challenge, sign and retry, settle and deliver.

#StepWhat actually happens
1RequestClient calls the resource with no payment, like any normal HTTP request.
2402 challengeServer answers 402 Payment Required with an offer: token, chain, amount, payTo address, and expiry. The offer is in a PAYMENT-REQUIRED header or body.
3Sign & retryClient signs a payment authorization (e.g. USDC on Base) and retries the same request with a PAYMENT-SIGNATURE header. No account, no API key, no person approving.
4Settle & deliverA facilitator verifies the authorization, broadcasts the transaction, and pays the network fee. Server returns the resource plus a PAYMENT-RESPONSE receipt with the on-chain transaction reference.

What's new in x402 (September 2026)

September 2026 brought the Cardano Foundation's x402 SDK, Ripple's XRP developer kit, TRM Labs' finding that only 0.6% to 7.5% of x402 volume looked agentic, and ProBlocks' live per-call billing on Base.

What do real x402 endpoints charge?

Real prices from the table: the SML Provider Marketplace listing at 0.01 USDC one-time, the ProBlocks demo endpoint at 0.001 USDC per call, and Squeeze Wire per-issue x402 at a proposed $0.25.

EndpointPriceNetwork
SML Provider Marketplace listing0.01 USDC, one timeBase (eip155:8453)
ProBlocks demo endpoint0.001 USDC per callBase
Squeeze Wire per-issue x402$0.25, proposed — launching soonTBD

The protocol sets no price — each seller does. Verify the price in the fresh 402 challenge before you sign anything.

How do I do x402 payments myself?

Free payment-safety check: Inspect an x402 quote before signing. Compare the actual payment challenge with Base USDC, an independently verified recipient and your per-call ceiling. A valid quote is not a payment receipt.

As a buyer: pick an endpoint, read the offer, fund a wallet, sign and keep the receipt. As a seller: put x402 in front of your API, set a per-call price, and get discovered.

As a buyer (agent or script):

  1. Pick an x402 endpoint. Inspect its terms first — always free: curl https://squeezeos-api.onrender.com/api/marketplace.
  2. Read the offer: price, asset, network, payTo, expiry. Confirm they match what you expected before signing.
  3. Fund a compatible wallet with USDC on Base. Sign the payment authorization with an x402-compatible client and retry with the PAYMENT-SIGNATURE header.
  4. Keep the PAYMENT-RESPONSE receipt — it carries the on-chain transaction reference. Settlement proves value moved; it does not prove the API returned correct, complete data. Verify delivery separately.

As a seller (put a meter on your API):

  1. Place x402 in front of your API — from zero-code proxying to full control of the payment flow.
  2. Set your per-call price (cost-based, usage-based, or outcome-based).
  3. Get discovered: list in Coinbase's Bazaar catalogue or on the SML Provider Marketplace (one-time 0.01 USDC x402 listing; discovery is free).

Before you sign anything: verify price, asset, network, recipient, expiry, and resource binding in the challenge; cap amounts; restrict destinations. Settlement and accepted delivery are separate evidence stages.

Where does ScriptMasterLabs fit in x402?

SML fits through the Provider Marketplace live x402 v2 listing contract, the x402 Protocol Guide PDF, Squeeze Wire per-issue pricing, and the machine manifest.

What are the sources for this x402 guide?

Sources: the Cardano Foundation x402 SDK announcement, Ripple's XRP developer kit, the TRM Labs x402 analysis, ProBlocks' live x402 integration on Base, the SML marketplace contract, and the x402 protocol origin.

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