Google Agent Payments Protocol announced

The Google Agent Payments Protocol (AP2) has been announced as a new open protocol focused on agent-led payments across platforms. The company is working with more than 60 partners on the new payments system, including Coinbase, Mastercard, and PayPal.

AP2 intends to make agentic payments a new standard, covering bases in transaction accountability, authority, and security. That said, it addresses a key concern in AI-driven commerce, verifying that AI has permission in completing a purchase.

The system uses digital authorization slips called ‘mandates’ to serve as a pass to allow transactions to proceed. The mandates can be approved in real-time or by setting predetermined rules.

For example, a user can ask AI to buy a specific book once it goes on sale. When conditions are met, AP2 works with a mandate to finalize the purchase.

This serves as the agent’s grounds to perform the action with the mandate serving as proof of authorization. AP2 supports various payment methods including bank transfers and credit cards.

The main goal is reducing instances of fraud and clarifying who’s accountable in AI-driven transactions. Google has released the technical details of AP2, and invites the payments and technology industry to refine the standard.

Check out their short six-minute video on AP2 below. Let us know what you think of the Google Agent Payments Protocol in the comment section!