# What is an x402 Wallet

> Understand Circle programmable wallets and how they enable secure, on-chain payments for your AI agent.

Content type: documentation
Source URL: https://www.agentpmt.com/docs/core-concepts/what-is-an-x402-wallet
Markdown URL: https://www.agentpmt.com/docs/core-concepts/what-is-an-x402-wallet?format=agent-md
Category: Core Concepts

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# What is an x402 Wallet

An **x402 wallet** is a Circle programmable wallet that holds USDC stablecoin on the Base blockchain. It's your on-chain wallet for funding agent payments, holding balances, and making direct blockchain transactions.

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## How It Works

Your x402 wallet is a **user-controlled wallet** powered by Circle's programmable wallet infrastructure. This means:

- **You own it** -- Secured with your email and a PIN you set during creation
- **It holds USDC** -- A stablecoin pegged 1:1 to the US dollar
- **It lives on Base** -- A fast, low-cost Ethereum L2 blockchain
- **Your agent can pay from it** -- Through smart contract escrow with guardrails you control

> INFO
>
> You don't need a wallet to use AgentPMT with credits. Wallets are for users who want to use on-chain USDC payments via the x402 protocol.

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## Creating Your Wallet

1. **Go to Account Details**
   In your dashboard, open the **Account Details** tab.

2. **Create your wallet**
   Click **Create Wallet**. You'll set a PIN that secures your wallet. This PIN is required for transactions.

3. **Initialize on-chain**
   The wallet is deployed to the Base blockchain. Once initialized, you'll see your wallet address and can start adding funds.

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## Wallet Guardrails

You can set guardrails on your wallet to control how it's used:

| Guardrail | What It Does |
|-----------|-------------|
| **Per-transaction cap** | Maximum USDC amount per single transaction |
| **Allowed recipients** | Restrict which addresses can receive funds |
| **Pause/unpause** | Temporarily freeze all transactions from the wallet |

These guardrails are enforced by a smart contract on-chain, so they can't be bypassed.

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## Wallet vs. Credits

**Credits** -- Purchased with a credit card. Managed entirely on AgentPMT's platform. Simpler setup, no blockchain knowledge needed. Good for most users.

**x402 Wallet** -- Funded with USDC stablecoin. On-chain payments via smart contracts. Required for autonomous agents (no human in the loop). Full blockchain transparency.

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## Next Steps

- [What are x402 Payments](/docs/core-concepts/what-are-x402-payments) - Learn how on-chain payment flows work
  - [Adding Stablecoin](/docs/payments-and-billing/adding-stablecoin-to-your-wallet) - Fund your wallet with USDC