Coinbase-Backed x402 Adds Batch Settlement for AI Agent Payments

JOON HYOUNG LEE

Summary

Coinbase-backed payment protocol x402 said it has introduced a batch-settlement feature for AI agent payments.
The batch-settlement feature bundles multiple small transactions into a single on-chain transaction, reducing the gas-fee burden.
Coinbase said batch settlement allows merchants to offer a cheaper and faster payment experience, while enabling the use of not only stablecoins but also ERC-20 tokens as payment methods.

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Coinbase-backed payment protocol x402 has introduced a batch-settlement feature for payments made by artificial intelligence agents.

Base developer Jesse Pollak announced the update on May 13, Cointelegraph reported. Base is Coinbase’s layer-2 blockchain.

Batch settlement groups multiple small transactions and settles them later instead of processing each one immediately on-chain. Under the system, a buyer deposits ERC-20 tokens into on-chain escrow and signs off-chain vouchers, with multiple payments later redeemed through a single on-chain transaction.

The feature reduces gas costs in AI agent payments. In a post on X on May 13, Joshua Nickerson, head of product for Coinbase’s developer platform, wrote that batch payments allow merchants to offer agents a cheaper and faster payment experience. Fees for deposits, batch settlement and refunds are all paid by the payment intermediary.

The feature also allows AI agents to use Ethereum-based ERC-20 tokens as a payment method in addition to stablecoins.