x402 vs The Rest
How does the open x402 protocol stack up against traditional gateways and other crypto solutions?
| Feature | x402 Protocol | Traditional (Stripe/PayPal) | Lightning Network |
|---|---|---|---|
| Native to HTTP | Yes (Status 402) | No | No |
| User Account Required | No (Permissionless) | Yes | No |
| Stablecoin Support | Yes (USDC, etc.) | Limited | No (BTC only) |
| Protocol Fees | Zero | 2.9% + $0.30 | Low (Channel fees) |
| Settlement Time | Seconds | Days (T+2) | Instant |
vs Stripe & PayPal
Stripe and PayPal facilitate online payments but require customer accounts, credit cards, and involve higher fees. They are optimized for larger transactions rather than micropayments.
By contrast, x402 integrates payment negotiation into HTTP itself, eliminating redirects, logins, and offering zero protocol fees.
vs Lightning Network
Lightning Network allows Bitcoin micropayments but requires channel setup and Bitcoin liquidity management.
x402 is blockchain agnostic and currently uses stablecoins like USDC, enabling price stability which is crucial for business pricing models.