Google Launches Agent Payments Protocol (AP2) to Standardize AI-Driven Transactions

Mountain View, United States – Google has unveiled the Agent Payments Protocol (AP2), an open standard designed to make AI-initiated purchases interoperable across platforms, payment systems, and vendors.

Backed by 60+ merchants and financial institutions, AP2 seeks to build trust in agentic commerce by creating a transparent, auditable paper trail for every AI-driven transaction. Google executives Stavan Parikh and Rao Surapaneni emphasized that the protocol will evolve through an open, collaborative process with contributions from the payments and technology community worldwide.

How AP2 Works: Key Features

The protocol defines clear rules for user authorization and AI agent responsibilities:

• Intent Mandate: Authorizes AI agents to search for options and negotiate prices on behalf of users.

• Cart Mandate: Requires separate user approval before completing the final purchase.

• Automated Purchases: Allows fully automated transactions only under strict compliance rules, ensuring full auditability.

Google illustrated use cases such as an AI assistant booking travel, planning a bike trip, or handling multi-step e-commerce purchases seamlessly across services.

Open Access and Crypto Integration

• Public Specification: The full AP2 spec is available on GitHub, enabling open-source collaboration.

• Crypto Payments: Partnerships with Coinbase, MetaMask, and the Ethereum Foundation will extend AP2 to blockchain-based payments.

This dual focus on openness and multi-currency support positions AP2 as a future-ready payments standard for both traditional and decentralized finance ecosystems.

Industry and Regulatory Implications

Analysts say AP2 could:

• Standardize agentic commerce: Prevent fragmentation across AI-driven platforms.

• Increase transparency: Strengthen consumer trust through auditable transaction records.

• Accelerate adoption: Enable AI assistants to handle purchases across retail, travel, and digital services.

However, challenges remain:

• Cross-platform cooperation: Adoption by Apple, Amazon, payment networks and other competitors is not guaranteed.

• Regulatory scrutiny: Governments may demand privacy protections, fraud safeguards, and user consent controls before allowing automated agents to handle payments at scale.

Strategic Positioning for Google

By launching AP2, Google aims to:

• Establish itself as the standard-setter for the emerging agentic economy.

• Ensure security and accountability in AI-driven financial transactions.

• Expand its ecosystem to decentralized finance via crypto integrations.

If widely adopted, AP2 could become the default framework for AI commerce, shaping how digital assistants interact with the global payments infrastructure.