Google Launches AP2 Protocol for AI Agent Payments

Google’s Agent Payments Protocol (AP2) builds upon the company’s earlier Agent2Agent framework announced in April 2025, creating a comprehensive system designed specifically for AI-to-AI transactions. According to James Tromans, Head of Web3 at Google Cloud, the protocol was constructed “from the ground up to factor in both heritage and existing payment rail capabilities as well as forthcoming capabilities such as stablecoins.” This dual approach allows AP2 to support traditional payment methods including credit and debit cards through partners like American Express (AXP), Mastercard (MA), and PayPal (PYPL), while simultaneously embracing emerging technologies like stablecoins and cryptocurrencies.

The core innovation lies in AP2’s use of “Mandates” – tamper-proof, cryptographically-signed smart contracts that serve as verifiable proof of user instructions. These Mandates address two primary shopping scenarios: real-time purchases where humans are present to authorize transactions, and delegated tasks where AI agents operate autonomously based on pre-approved parameters. This architecture ensures security and trust while enabling the seamless execution of payments between AI systems without constant human intervention.

Google’s collaboration with more than 60 organizations represents a strategic alignment across traditional finance and cryptocurrency sectors. The partnership roster includes cryptocurrency heavyweights like Coinbase (COIN) and the Ethereum Foundation, alongside established payments giants such as American Express, Mastercard, PayPal, Revolut, and UnionPay. This diverse coalition suggests a deliberate effort to bridge the gap between conventional financial systems and emerging Web3 technologies.

Brian Armstrong, CEO of Coinbase, highlighted the significance of this development, noting on Twitter that “x402 + @Google just unlocked a new level for AI agents” with x402 powering the stablecoin rail within AP2. This integration accelerates support for the Web3 ecosystem through a production-ready solution for agent-based crypto payments. The timing is particularly notable given the Ethereum Foundation’s simultaneous announcement of a new team dedicated to developing agentic AI payments for the Ethereum network, indicating coordinated momentum across major technology players.

AP2 enables sophisticated autonomous commerce scenarios that could fundamentally reshape how consumers and businesses transact. The protocol facilitates “smart shopping” where AI agents continuously monitor product availability and automatically execute purchases when predetermined conditions are met. This capability extends to personalized offer negotiation, where agents can contact merchants with specific requirements and time frames for desired items, potentially revolutionizing the e-commerce landscape.

The system also supports coordinated multi-vendor transactions, allowing AI agents to simultaneously book complementary services such as flights and hotels without human oversight. This level of automation represents a significant advancement in machine-to-machine commerce, reducing friction in complex purchasing processes while maintaining security through the Mandate system. As these capabilities mature, they could enable entirely new business models and consumer experiences built around autonomous AI decision-making and execution.

Google’s entry into the agentic AI payments space with AP2 positions the company at the intersection of artificial intelligence, financial technology, and Web3 infrastructure. By creating a universal protocol that supports both traditional and cryptocurrency payments, Google is not only facilitating the development of autonomous commerce but also potentially establishing itself as a foundational layer for the next generation of machine-driven economic activity. The broad industry support and technical sophistication of AP2 suggest this protocol could become a critical infrastructure component as AI agents increasingly participate in economic transactions.