Stripe Unveils AI Payment Model and Stablecoin Accounts

Stripe has introduced its AI foundation model for payments and expanded its money management capabilities to include stablecoin-powered accounts, the firm announced at its annual user event, Sessions. 

The payment processing company reported that businesses using its platform processed US$1.4tn in payment volume last year, representing 38% growth from 2023 and equivalent to 1.3% of global GDP. 

Stripe currently serves half of the companies in the Fortune 100 and 78% of firms on the Forbes AI 50 list.

“There are not one, but two, gale-force tailwinds dramatically reshaping the economic landscape around us: AI and stablecoins,” says Patrick Collison, Stripe Co-founder and CEO. 

“Our job is to pull these technologies forward so businesses on Stripe can benefit from them right away.”

AI foundation model transforms payment processing

Stripe's new AI foundation model, trained on tens of billions of transactions, represents a significant shift from its previous approach of using specialised AI models for specific tasks such as fraud prevention and checkout personalisation.

The new model captures hundreds of signals about each payment that specialised models cannot detect.

 Early results show the foundation model increased detection rates for card testing attacks on large businesses by 64%, compared to the 80% reduction Stripe achieved over two years with previous systems.

The comprehensive AI system will be deployed across Stripe's payment products to improve performance in areas including fraud detection and payment authorisation rates.

Stablecoin accounts expand global reach

The launch of Stablecoin Financial Accounts follows Stripe's acquisition of stablecoin platform Bridge three months ago. 

These accounts will enable businesses to hold balances in stablecoins, receive funds through both cryptocurrency and traditional banking systems, and send stablecoins globally.

Stripe will initially support two dollar-denominated stablecoins—USDC and Bridge's USDB—with plans to add others. 

The accounts target entrepreneurs in countries with volatile currencies, offering protection against inflation and access to the global economy.

Transaction volumes for stablecoins have increased by over 50% in the past year, according to Stripe. 

Stablecoins, cryptocurrencies pegged to assets like the US dollar to maintain stable value, enable faster and cheaper international money transfers.

To address the challenge of spending stablecoins at businesses that only accept traditional currencies, Bridge has partnered with Visa to create a card issuing product. 

This will allow financial technology companies to issue Visa cards linked to stablecoin wallets. When cardholders make purchases, Bridge converts the stablecoins to local currency, enabling merchants to receive payment in their preferred currency.

Stripe has also introduced multi-currency capabilities, allowing businesses to hold and manage balances in US dollars, euros, and British pounds within their existing Stripe accounts. 

This feature helps multinational companies avoid foreign exchange fees when moving money between countries.

“We're building programmable financial services, to make money as easy to manipulate and manage with code as data is,” says Will Gaybrick, Stripe's President of Product and Business.

Enterprise partnerships and platform upgrades

NVIDIA has implemented Stripe Billing for its GeForce Now cloud gaming service. The migration was completed in six weeks, which Stripe identifies as the fastest-ever migration to Stripe Billing.

PepsiCo, the food and beverage company, is expanding its work with Stripe to modernise payments for small businesses in the United States. 

The company has moved from paper cheques for deliveries to a digital payment system through a new website and application.

For large enterprises using multiple payment processors, Stripe has introduced Orchestration, a system that helps businesses optimise performance across payment providers through a single dashboard.

Stripe announced more than 60 additional product enhancements, including support for 25 new payment methods such as India's Unified Payments Interface (UPI) and Brazil's PIX instant payment system. 

The company also introduced consumer credit card issuing capabilities, expanded its tax service to 102 countries, and launched Smart Disputes, an AI system that automates dispute handling and improves chargeback win rates by 13%.

“For enterprises with complex payments architecture, orchestration is essential. Being able to manage and optimise performance across payment providers in one place gives businesses a level of control and visibility that could unlock meaningful performance gains,” says Jordan McKee, Head of Fintech Research at S&P Global Market Intelligence.

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