Reference Architecture: Internet-Native Payments and the x402 Standard

The emergence of internet-native payment standards marks a critical shift in how value is exchanged across digital systems. Traditionally, financial transactions have existed as a separate layer, abstracted away from core internet protocols. Recent developments aim to close this gap by embedding payments directly into network-level interactions.

One notable example is x402, an initiative associated with Coinbase, which introduces a standardized mechanism for enabling native payments over HTTP. By reinterpreting the legacy HTTP 402 “Payment Required” status code, x402 proposes a model where value transfer becomes a first-class citizen of internet communication.

In this model, requests, responses, and payments are no longer isolated steps. Instead, payment becomes an integral part of the request lifecycle, allowing applications, APIs, and services to exchange value in a programmatic, composable, and internet-native manner.