Google, OpenAI, Circle join hands for agentic payments

Tech heavyweights and crypto firms are converging to build a new financial layer for the internet.

But this one is designed not for humans. 

A coalition of major technology, payments and crypto firms is forming around a shared vision of enabling AI agents to transact seamlessly without human intervention.

Companies including Google's parent company Alphabet (Nasdaq: GOOGL), ChatGPT maker OpenAI and USDC stablecoin issuer Circle (NYSE: CRCL) have joined a nonprofit initiative supporting the x402 protocol, an open-source framework designed for instant, automated payments.

New guardrails for agentic commerce

The initiative, announced on Apr. 2 and governed under the Linux Foundation, also includes participation from firms across cloud computing, payments and blockchain infrastructure. 

The goal is to create neutral, interoperable rails for "agentic commerce," where software programs can independently pay for services like data access, APIs or compute power.

This is a shift from traditional payment systems that rely heavily on intermediaries such as banks and card networks. 

Instead, the new model emphasizes direct, programmable transactions, often powered by stablecoins , that settle instantly onchain.

More News:

• Treasury unveils dual rules for stablecoin companies below $10B

• A beginner's guide to securing your crypto

• Why the smartest money in finance stopped picking sides

Why agentic payments need new infrastructure

The rise of AI agents is expected to dramatically increase transaction frequency while reducing transaction size. Unlike human-driven commerce, where purchases are occasional and high-value, machine payments are likely to be continuous, low-cost and global.

But current payment rails are not optimized for this model. Credit card networks, for example, involve multiple intermediaries and fees that make microtransactions inefficient. In contrast, protocols like x402 enable direct settlement between machines, eliminating friction and reducing costs.

Global payments revenue reached $1.9 trillion in 2024, and Boston Consulting Group  projects it will grow to $2.4 trillion by 2029, although growth is expected to moderate to 4% annually over the next five years. And one of the five drivers for this growth is agentic AI tools alongside digital currencies and real-time account-to-account payments.

The concept traces back to the early days of the internet. Engineers reserved the HTTP 402 "Payment Required" status code for future use cases involving automated payments. Decades later, that vision is being realized through blockchain-based systems and stablecoin rails.