We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Cloudflare to Launch x402 Foundation for Seamless Internet Payment
Read MoreHide Full Article
Key Takeaways
Cloudflare and Coinbase will launch the x402 Foundation for an open digital payments standard.
The x402 standard will enable cross-border, multi-currency, and multi-method online payments.
New products in 2025 expand Cloudflare's portfolio, but competition is pressuring margins.
Cloudflare (NET - Free Report) and Coinbase (COIN - Free Report) have teamed up to launch the x402 Foundation, with the aim of creating an open Internet standard for digital payments.
The x402 standard to be launched with Coinbase will enable website owners, developers, and creators to send and receive payments across geographies, currencies, and payment methods seamlessly. Cloudflare is anticipating that this will help the world take a step toward Internet-native money.
More importantly, the new standard to be launched in collaboration with Coinbase is expected to pave the way toward a flexible future for monetizing APIs, content, and autonomous transactions. This new standard will add another offering to the portfolio of Cloudflare, which has already launched multiple products in 2025.
In 2025, NET introduced multiple products, including Cloudflare for AI, Cloudforce One threat events platform, Quantum-safe Zero Trust support, One-Click Content Credentials and connected AI Security Posture Management into its Zero Trust platform.
These new offerings have increased Cloudflare’s capabilities to include integrated solutions for Firewall for AI and AI Gateway, post-quantum cryptography, while making the Internet a safer place. However, Cloudflare suffers from a few challenges.
NET Faces Competitive Pressure and Shrinking Margins
One of the many reasons why Cloudflare is heavily investing in developing new products and features is due to competition. Cloudflare operates in a highly competitive environment. In its content delivery space, companies like Amazon (AMZN - Free Report) , Akamai Technology and Fastly compete with Cloudflare. While in the cybersecurity space, a range of competitors like Palo Alto Networks and Zscaler (ZS - Free Report) compete with it.
Amazon also competes with its developer platform through its general-purpose serverless and container-based edge deployment solutions. Alphabet is implementing AI in its Cloud Run solution, Amazon’s AWS Lambda & Lambda@Edge leverage deep integrations with AWS services, robust tooling, and a mature developer base.
Furthermore, Zscaler’s presence across multiple verticals, including SASE and zero trust, along with its rapid market expansion, puts Cloudflare under pressure of market expansion and product innovation. To survive in the highly competitive market, each player must continually invest in broadening its capabilities, leading to higher investment in research and development and sales and marketing, causing shrinking margins.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Cloudflare to Launch x402 Foundation for Seamless Internet Payment
Key Takeaways
Cloudflare (NET - Free Report) and Coinbase (COIN - Free Report) have teamed up to launch the x402 Foundation, with the aim of creating an open Internet standard for digital payments.
The x402 standard to be launched with Coinbase will enable website owners, developers, and creators to send and receive payments across geographies, currencies, and payment methods seamlessly. Cloudflare is anticipating that this will help the world take a step toward Internet-native money.
More importantly, the new standard to be launched in collaboration with Coinbase is expected to pave the way toward a flexible future for monetizing APIs, content, and autonomous transactions. This new standard will add another offering to the portfolio of Cloudflare, which has already launched multiple products in 2025.
In 2025, NET introduced multiple products, including Cloudflare for AI, Cloudforce One threat events platform, Quantum-safe Zero Trust support, One-Click Content Credentials and connected AI Security Posture Management into its Zero Trust platform.
These new offerings have increased Cloudflare’s capabilities to include integrated solutions for Firewall for AI and AI Gateway, post-quantum cryptography, while making the Internet a safer place. However, Cloudflare suffers from a few challenges.
NET Faces Competitive Pressure and Shrinking Margins
One of the many reasons why Cloudflare is heavily investing in developing new products and features is due to competition. Cloudflare operates in a highly competitive environment. In its content delivery space, companies like Amazon (AMZN - Free Report) , Akamai Technology and Fastly compete with Cloudflare. While in the cybersecurity space, a range of competitors like Palo Alto Networks and Zscaler (ZS - Free Report) compete with it.
Amazon also competes with its developer platform through its general-purpose serverless and container-based edge deployment solutions. Alphabet is implementing AI in its Cloud Run solution, Amazon’s AWS Lambda & Lambda@Edge leverage deep integrations with AWS services, robust tooling, and a mature developer base.
Furthermore, Zscaler’s presence across multiple verticals, including SASE and zero trust, along with its rapid market expansion, puts Cloudflare under pressure of market expansion and product innovation. To survive in the highly competitive market, each player must continually invest in broadening its capabilities, leading to higher investment in research and development and sales and marketing, causing shrinking margins.