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What is X402?

X402 is an HTTP 402 Payment Required protocol for agents and applications. It lets clients pay for APIs and digital services directly over HTTP using:
  • Off-chain, EIP-712 signed payment authorizations (EIP-3009 style)
  • On-chain settlement executed by a facilitator service
On Prism, X402 is backed by the FD X402 Token, the X402 Facilitator service, and the Spectrum Registry for distribution.

Why X402 for Agentic Payments?

X402 is designed for human and AI clients that need to pay programmatically:

Gasless UX

Users or agents sign authorizations; facilitators pay gas on-chain

Atomic

A single flow from authorization to settlement and distribution

Transparent

Clear audit trail of who authorized, who executed, and who received funds

HTTP-native

Uses standard HTTP status codes and headers, easy to integrate into existing APIs

Key Use Cases

  • Metered API access paid per request
  • Paywalled data and content unlocked on demand
  • AI agents that autonomously pay for external tools and services
  • Marketplaces and platforms that share revenue across multiple recipients

How X402 Works

At a high level, an X402 payment on Prism follows this Challenge → Authorize → Settle → Distribute flow:
1

Challenge

Buyer calls a resource; the seller responds with 402 Payment Required and structured payment requirements (amount, asset, network, expiry, nonce scope)
2

Authorize

Buyer (or its agent) signs an EIP-3009 authorization over the X402 token using EIP-712 typed data
3

Settle

The signed authorization is submitted to the X402 Facilitator, which validates and executes the on-chain transfer using transferWithAuthorization
4

Distribute

After settlement, the facilitator triggers Spectrum Registry to perform on-chain revenue splitting
Behind this flow, the facilitator offloads blockchain complexity (gas management, nonce tracking, retries) so sellers and agents can integrate using familiar HTTP patterns.

Next Steps