The protocol boast "no fee" but that's deceptive: if it's based upon a blockchain, there will be transaction fees.
Now if the problem they want to solve is the case of low amount payments (they claim "no high minimum") then a percentage fee is not an issue, but a per-transaction fee can be absolutely massive. Also depending on the blockchain, you're exposed to fee volatility, which might be another issue.
According to that site Base USDC fee is 1/8th of a cent. The x402 whitepaper says 1/100th of a cent so I'm not sure what accounts for the discrepancy; maybe Coinbase is willing to subsidize fees in some cases.
x402 as a protocol has no fees, but the underlying network transactions are conducted on my have costs. Merchants can choose the underlying network transactions are conducted on that best fit their usecase. x402 also has the concept of a facilitator, which exists to abstract away the underlying payment networks. Many facilitators (including Coinbase's) subsidize the gas used for transactions.
> if it's based upon a blockchain, there will be transaction fees
Not necessarily. Crypto wallet can authorize expense just by signing something and sending that signature. No blockchain transaction takes place. Then these signatures are batched.
Which loops through a lot of transactions with a custom nano vanity id generator to embed data into blockchain which would have 0 gas fees.
Want to do something with it one day but not sure how to, or even if its worth it given the decentralized nature and Like, I want to really play with it once I can secure myself a college and then a job & maybe I will do it in my side project.
Now if the problem they want to solve is the case of low amount payments (they claim "no high minimum") then a percentage fee is not an issue, but a per-transaction fee can be absolutely massive. Also depending on the blockchain, you're exposed to fee volatility, which might be another issue.
Am I missing something here?