Agent Embedded Payment Protocol
Agent Embedded Payment Protocol (AEP2) is an embedded payment protocol designed for agent commerce, powered by stablecoin-based settlement. It enables AI agents to embed one-time payment mandates within x402, A2A or MCP calls — enabling instant payee verification and deferred settlement after execution.
What Does AEP2 Bring to Agent Payments?
Based on x402 Agent Stablecoin Payments
- Pay first, service later
- High latency, unfit for high-frequency transactions
- No KYC / KYB / KYA / AML compliance modules
AEP2 Will Build Efficient Agent Payments
- Authorize first, settle later
- Supports high-frequency and micro transactions
- Trusted trades with KYC / KYB / KYA / Dispute
- Embedded payment design
How It Works?
Authorize-to-Pay
The payee receives a signed payment mandate from the payer — the transaction completes instantly.
Ideal for high-frequency, low-latency micropayments.
Deferred Settlement
The payee settles within a defined window by debiting the payer's on-chain account using the mandate.
Smart contracts ensure sufficient funds for settlement.
Embedded & Programmable Payments
Payment mandates can be embedded into protocols such as x402, MCP, A2A, or ACP — enabling any agent communication or transaction to include payments programmatically.
Extensible Architecture
All roles in the protocol are modular and replaceable.
Participants can choose trusted entities for identity, settlement, or dispute resolution.
Batch Mandate Verification Powered by ZK-SNARK
Batch-verifies many signed payment mandates from x402, A2A or MCP with a single Groth16/BN254 proof verified on EVM — lowering gas and unlocking very-high-frequency micro-transactions.
Works with Authorize-to-Pay and Deferred Settlement — no per-tx confirmation to send the next payment.
Multi-Payout Settlement
Aggregates verified mandates into one on-chain transaction that executes multi-payout settlement to multiple payees — fitting the Settlement Processor queue and Deferred Settlement window.
Proof once, pay many. Compatible with Order Mode and Intent Mode, and preserves KYC / KYB / KYA and Dispute flows.
Embedded Payment
Building the AI-Native Way to Pay
Agents make payments by embedding one-time payment mandates directly into their requests
Flexible Transaction Modes
Order Mode
Order Mode is a payment flow where the payee initiates a payment request. The payee first returns a payment request containing the amount and terms. The payer then signs and submits a payment mandate, and the payee verifies it before completing the transaction.
Intent Mode
Intent Mode is a flow where the payer initiates the payment intent. The payer embeds a one-time payment mandate directly within a request (e.g. x402, A2A, MCP). The payee verifies the mandate before providing the service.
Payment Architecture
The payment flow's roles and mechanisms can be flexibly extended based on different scenarios
Debit Wallet
Defines a debit-capable wallet.
It can be extended to support additional functions such as credit capability or marketing-related vouchers.
Settlement Processor
Defines settlement mechanisms.
Beyond the default deferred settlement, it can be extended to models like result-based payments, credit-based settlements, or marketing-driven schemes.
KYC/KYB/KYA Providers
Provide trusted identity verification for agent transactions and payments.
Supports both anonymous and verified (real-name) transaction modes.
Dispute Processor
Provides a dispute-handling mechanism for payers.
Enabling this feature may increase fees or extend settlement timeframes.
Batch Settlement Powered by ZK-SNARK
ZK aggregation engineered for gasless UX, very‑high‑frequency & micro‑payments
Overview
The Settlement Processor (SP) extends ASP’s authorize first, settle later model with a zero‑knowledge settlement aggregator. It batches signed Payment Mandates and proves their correctness in one Groth16/BN254 proof on EVM, then executes multi‑payout settlement in a single transaction.
Payer Agent & Debit Wallet
Authorizes specific SPs to debit and enforces a withdrawal delay to protect pending settlements.
Payee Agent
Verifies mandates off‑chain and forwards them to the SP.
Settlement Processor
Ingests mandates, builds batches, generates a ZK proof, and triggers on‑chain settlement.
Everything Designed for the AI-Native Economy
AEP2 is fully built on blockchain smart contracts.
All funds are self-custodied, and payment flows are peer-to-peer, with no third-party custody or settlement involved.
Agents can transact directly without intermediaries — fast, seamless, and low-cost.
For enterprise-level needs, it can be extended with comprehensive compliance and regulatory services.