Google Unveils Agent Payments Protocol to Standardize AI-Driven Purchases

Google Introduces Open Protocol for AI Agent-Driven Transactions

On Tuesday, Google announced the launch of the Agent Payments Protocol (AP2), an open, interoperable system designed to enable purchases initiated by AI agents—automated software programs that shop and make decisions on behalf of users. The initiative has garnered support from over 60 merchants and financial institutions, including major players like Mastercard, American Express, and PayPal.

Protocol Designed for Complex AI Interactions

AP2 is engineered to facilitate seamless interactions between AI agents representing customers and those representing retailers. For example, a user could instruct their AI to arrange a bike trip, triggering dynamic, time-sensitive offers from vendor agents. Similarly, the protocol supports multi-party transactions such as booking flights and hotels simultaneously, with cryptographically-signed confirmations ensuring security and integrity.

Security Through Dual Mandates and Auditable Trails

To mitigate risks and maintain transparency, AP2 enforces a two-step authorization process. First, the intent mandate allows the AI agent to search and negotiate for products based on user preferences. Second, the cart mandate provides final purchase approval once a specific item is selected. The protocol also accommodates fully automated purchases under stringent conditions defined in the intent mandate, including price limits and timing constraints. Every transaction generates an auditable record to facilitate fraud detection and dispute resolution.

Integration with Cryptocurrency Ecosystem

In collaboration with cryptocurrency organizations such as Coinbase, Metamask, and the Ethereum Foundation, Google developed an extension to incorporate the x402 protocol. This integration enables AI agents to execute purchases directly from crypto wallets, expanding AP2’s applicability to emerging digital payment methods.

Industry Context and Adoption Challenges

While other companies like Perplexity and Stripe are developing agentic purchasing capabilities, Google’s AP2 distinguishes itself through its comprehensive scope and open standards approach. The protocol’s success will largely depend on adoption by developers and stakeholders across the AI and payments ecosystems. However, the endorsement by key financial institutions and the release of the full specification on GitHub underscore Google’s commitment to fostering a collaborative environment for this technology’s evolution.

Russell Brandom, who has covered technology and platform policy extensively since 2012, contributed to this report.