How x402 Payment Flow Works

Sam outlines the 402 response, client-signed crypto transfers in headers, facilitator settlement, and resource delivery.

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Micropayments were always meant to be part of the internet, but the technology never existed to make them work.

Until now. David sits down with Sam Ragsdale, CEO of Merit Systems, to unpack x402, a new protocol reviving the long-dormant “Payment Required” status code to enable crypto-powered microtransactions across the web.

They explore how x402 could transform how machines, AI agents, and humans pay for internet resources, reshape online business models beyond ads, and unlock a new economy of autonomous agents and programmable commerce.

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TIMESTAMPS

0:00 Intro

0:10 What is x402?

6:19 Internet Micropayments

9:45 x402 Encryption

12:10 x402 Inception

15:20 How x402 Transactions Work

27:02 x402 Experiments

39:46 Paywalls

43:53 A New Internet?

47:12 Call to Builders