Cloudflare and Coinbase have launched the x402 Foundation to establish universal standards for machine-to-machine (M2M) and AI-driven payments using the HTTP 402 'Payment Required' status code. This initiative addresses the limitations of traditional payment systems, which are not optimized for autonomous agents and AI workflows. The x402 protocol allows servers to request real-time payments from clients, enabling developers to integrate monetization into automated processes without the need for accounts or subscriptions. Cloudflare has integrated x402 into its Agents SDK and Model Context Protocol, facilitating transactions between AI agents and services. Coinbase has developed the x402 transaction flow, providing stablecoin-based settlement infrastructure for secure transactions. Additionally, Cloudflare introduced a deferred payment model for delayed settlement, beneficial for web crawlers and data scraping tools. The x402 Foundation plans to expand its membership to include AI companies and enterprises, with analysts predicting the M2M commerce market will surpass $700 billion by 2032.