// GLOSSARY -- AGENTIC FINANCE
What is the AP2 Agent Payments Protocol?
AP2 is a payment protocol for AI agent transactions providing standardized negotiation, authorization, and settlement flows between agents and services.
WHY IT MATTERS
Proliferating agents demand standards. Without them, every integration needs custom payment logic. AP2 provides a common protocol any framework can implement.
Defines: discovery of payment requirements, term negotiation, authorization, settlement verification. Blockchain-agnostic, workflow-focused.
As major tech companies invest in agents, standardized payment protocols are critical for interoperability.
HOW POLICYLAYER USES THIS
PolicyLayer integrates with AP2 to enforce spending controls on agent payment flows regardless of protocol.
FREQUENTLY ASKED QUESTIONS
AP2 vs. x402?
x402 is HTTP-native, focused on per-request payments. AP2 is a broader payment protocol covering different transaction patterns. They can be complementary.
Who created AP2?
AP2 is being developed as part of the broader agent payment standards effort, with contributions from multiple organizations.
Adoption status?
Early stage. The agent payment protocol space is still consolidating, with x402 and AP2 among the leading proposals.