Stripe Launches AI-Powered Payment Foundation Model and Strengthens Partnership with Nvidia
On Wednesday, fintech powerhouse Stripe unveiled a series of innovative product launches during its annual Stripe Sessions user event, showcasing exciting advancements in payment technology and fraud detection. These new offerings include a groundbreaking AI foundation model for payments, stablecoin-powered accounts, a novel Orchestration feature, and a strategic partnership with chip giant Nvidia.
Stripe’s Cutting-Edge AI Foundation Model
According to Emily Glassberg Sands, Stripe’s head of information, the new payments foundation model has been trained on tens of billions of transactions, enabling it to identify hundreds of subtle signals about each payment that other models might overlook.
One significant application of this model is its enhanced fraud detection capabilities. Stripe’s previous models had already cut card-testing attacks by 80% over two years. The new foundation model reportedly increased the detection rate for such attacks among large businesses by an impressive 64% practically overnight.
Understanding Card-Testing Attacks
Card-testing attacks are a form of fraud where criminals attempt to verify stolen card details to make unauthorized purchases. With the new model, Stripe has leveraged its vast data more effectively, enhancing its fraud detection measures.
Competitive Landscape in Fraud Detection
Stripe is not alone in utilizing AI for fraud detection. For instance, Sardine, an AI risk platform for fraud and compliance, recently raised $70 million in a Series C funding round led by Activant Capital.
Stablecoin and Multicurrency Solutions
Stripe also announced its plans to introduce stablecoin-backed multicurrency cards for businesses by collaborating with startups like Ramp, Squads, and Airtm. This initiative will allow businesses operating across different countries to transact in the same currency for the first time.
This announcement follows Stripe’s recent acquisition of the stablecoin platform Bridge, signaling a strong commitment to integrating cryptocurrency solutions.
Enhanced Orchestration and Integration
With the launch of its new Orchestration feature, Stripe aims to streamline the process for businesses to set up, manage, and optimize performance across various payment providers directly from its dashboard, regardless of whether they use Stripe as their payment processor.
Successful Migration with Nvidia
In a notable achievement, Vivek Sharma, Stripe’s head of revenue automation, reported that Nvidia successfully migrated its entire subscriber base to Stripe Billing in just six weeks. This rapid transition is considered the fastest-ever migration to Stripe Billing, a process that typically takes several months.
Additional Announcements from Stripe
During the event, Stripe also revealed several other key updates:
- Support for 25 new payment methods, including UPI and PIX, bringing the total to over 125.
- Klarna will be integrated into Stripe’s consumer payments product Link this summer.
- Stripe Terminal is now compatible with third-party hardware, starting with Verifone.
- Managed Payments will assist businesses in entering new markets by handling global taxes, fraud prevention, dispute management, and fulfillment.
- Smart Disputes leverages AI to automate dispute management.
- Stripe Tax is now available in 102 countries, an increase from 57 last year, automating the entire tax lifecycle.
- Global Payouts allows businesses to pay customers and contractors using just an email address.
With these advancements, Stripe continues to solidify its position as a leader in the fintech industry, enhancing its offerings to meet the evolving needs of businesses worldwide. For more information on Stripe’s latest products, visit the official Stripe website.
