Google Launches New Protocol for AI-Agent-Driven Shopping

On Tuesday, Google unveiled a new open protocol designed for purchases initiated by AI agents — autonomous software systems capable of making decisions and completing purchases on behalf of users. Called the Agent Payments Protocol (AP2), the initiative is backed by more than 60 merchants and financial institutions. Its purpose is to standardize collaboration between AI platforms, payment networks, and retailers, while creating a verifiable, auditable record of every transaction.

In its announcement post, Google executives emphasized a commitment to openness and collaboration:

“We are committed to developing this protocol as part of an open, cooperative process involving standards bodies and inviting the broader payments and technology community to build this future together.”

The full AP2 specification was simultaneously published on GitHub.

This protocol is designed for a near-future where AI agents routinely handle purchases for consumers, engaging in real-time, complex negotiations with retailer-side agents. One example presented by Google imagines a chatbot user asking their agent to “prepare for a cycling trip.” The AI agent then triggers a dynamic offer from a bike shop’s own agent, bundling relevant gear with time-sensitive discounts.

Another example describes a user providing only dates, location, and budget for a weekend vacation. AP2 enables the agent to negotiate with airline and hotel systems as well as online travel agencies and booking platforms, and once it finds an itinerary that matches the budget, execute both reservations simultaneously with cryptographic signatures.

From a technical and regulatory standpoint, enabling this kind of transaction flow is highly complex. AP2 requires AI agents to register two layers of user consent before completing a purchase:

• Intent Mandate – the first approval, essentially authorizing the agent to search for and negotiate options (e.g., “find me a polka-dot necktie”).

• Cart Mandate – the final approval, authorizing payment and confirming the purchase of a specific item.

AP2 also allows for fully automated purchases under strict conditions. In such cases, the intent mandate must include detailed parameters — price range, timing constraints, and other rules — enabling the agent to auto-generate the cart mandate once a match is found. The design ensures every action leaves an auditable trail, critical for fraud detection and dispute resolution.

In collaboration with Coinbase, Metamask, and the Ethereum Foundation, Google also introduced an extension integrating the x402 protocol, allowing AI agents to complete crypto-based transactions directly from digital wallets.

Other major tech companies are also exploring agent-based commerce. Notably, Perplexity is experimenting with agent-driven purchasing within its AI browser, and payment processor Stripe is developing its own set of tools — though not as comprehensive as AP2.

As with any open protocol, AP2’s success will depend on ecosystem adoption, particularly from developers building agent-powered commerce solutions. Still, Google’s effort already carries weight, having secured support from major financial players including Mastercard, American Express, and PayPal — an early endorsement that could fast-track adoption across the industry.