> This page location: Functions > Templates > Paid API with x402 and Hono
> Full Neon documentation index: https://neon.com/docs/llms.txt

# Paid API with x402 and Hono

Charge per request in testnet USDC on Base Sepolia with x402, and keep a payment ledger in Lakebase Postgres.

- First Party: maintained by Neon
- Built by: Neon
- Categories: First Party, APIs, Payments

## Install

```bash
neon functions new x402-paid-api
```

## What it does

This template has a single handler and no named operations, so it's a starting point for your own code. To try it, run it locally with [`neon dev`](https://neon.com/docs/cli/dev.md) first, and deploy it to a branch with [`neon deploy`](https://neon.com/docs/compute/functions/deploy.md) once it works.

## Environment variables

The CLI declares these variables in `neon.ts` and adds them to `.env.example` without values, so you need to fill in the required ones before you run the function.

| Variable | Description | Required |
| --- | --- | --- |
| `X402_EVM_ADDRESS` | EVM wallet address (0x...) on Base Sepolia that receives payments. The buyer needs Base Sepolia USDC. | Yes |

## Related

- Previous: [Mirror WorkOS data into Postgres](https://neon.com/functions/templates/workos-sync.md)
- Next: [CRUD API with OpenAPI and Postgres](https://neon.com/functions/templates/openapi-postgres.md)
- [All templates](https://neon.com/functions/templates.md)
- [Template source](https://github.com/neondatabase/examples/tree/main/registry/x402-paid-api)
- [Use function templates](https://neon.com/docs/compute/functions/templates.md)
- [Contribute a function template](https://neon.com/docs/compute/functions/registry.md)

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