AI agents could create a new payment layer for the internet as they begin paying for content, data and services, Coinbase executive Faryar Shirzad said Oct. 7.
Shirzad highlighted a new Coinbase Institute paper examining machine-to-machine payments in the AI era. The paper describes AI agents as a “second customer” that can retrieve information, compare services and complete tasks for users.
However, agent activity may not generate advertising revenue or traditional website traffic. That could create a need for payment systems designed for automated transactions.
Stablecoins Target Tiny Payments
The paper says traditional payment methods can make very small transactions impractical. A $0.30 fee, for example, can outweigh the value of a $0.001 API request.
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Stablecoins running on low-cost networks could support payments worth fractions of a cent. Agents may also make hundreds or thousands of requests while completing a single task.
The paper points to low fees, fast settlement and cross-border transfers as potential advantages for these transactions.
How AI Agents Could Pay
Coinbase identifies x402 as one possible system for machine-to-machine payments. An agent requests data, while the server returns payment details through HTTP 402.
The agent can then authorize the payment before receiving the requested resource. This process could allow websites and services to charge agents automatically.
The paper also highlights identity controls and spending limits. Developers could set rules for what an agent can purchase and how much it can spend, helping limit unauthorized transactions.
Related: Saylor Links AI Agent Payments to Bitcoin, Urges Policy Changes
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