Stripe AI Model & Nvidia Partnership

Stripe Unveils New AI and Fintech Solutions at Stripe Sessions

Stripe, a leading financial technology company, revealed a range of new products and advancements during its annual Stripe Sessions event held on Wednesday.

Key Announcements

Among the most significant introductions are a novel AI foundation model designed for payment processing, accounts powered by stablecoins, and a new Orchestration service. Furthermore, the company highlighted a recent successful migration undertaken with technology leader Nvidia.

AI-Powered Payments Foundation Model

Stripe’s newly developed payments foundation model has undergone training utilizing tens of billions of transaction records. Emily Glassberg Sands, Stripe’s head of information, explained that this extensive training allows the model to “capture hundreds of subtle signals about each payment” – details that would likely be overlooked by alternative models.

A primary application of this technology lies in enhancing fraud detection capabilities. Previous models implemented by Stripe had already achieved an 80% reduction in card-testing attacks over a two-year period. Card-testing attacks involve attempts to validate stolen credit card details for illicit purchases.

The company asserts that its latest foundation model resulted in a 64% increase in the detection rate of these attacks for larger businesses, achieved “practically overnight.”

Sands emphasized, “Previously, we were unable to fully leverage our extensive data resources. This is now achievable.”

It’s important to note that Stripe is not alone in utilizing AI for fraud prevention. Companies like Sardine, an AI-driven risk platform focused on fraud, compliance, and credit underwriting, recently secured $70 million in Series C funding led by Activant Capital.

Generalized AI Model Approach

In a recent interview, Will Gaybrick, Stripe’s president of product and business, clarified that Stripe’s model employs self-supervised learning, enabling it to independently identify relevant features.

“We have consistently observed that generalized models deliver superior performance,” Gaybrick stated. “A significant factor is their adaptability and enhanced ability to respond to evolving fraud patterns.”

Stablecoin-Backed Multicurrency Cards

Stripe also announced plans to introduce stablecoin-backed, multicurrency cards for businesses through collaborations with startups such as Ramp, Squads, and Airtm. These cards will enable businesses operating in various countries to “operate in the same currency for the first time,” according to the companies involved.

This initiative follows Stripe’s completion of its acquisition of stablecoin platform Bridge just three months prior.

Enhanced Payment Management with Orchestration

The new Orchestration service is designed to streamline the process of setting up, managing, and optimizing performance across multiple payment providers directly from a unified dashboard. This functionality extends to businesses regardless of whether they currently utilize Stripe as their primary payment processor.

AI Integration and Customer Successes

During the event, Stripe showcased a number of AI companies leveraging its billing product, including Windsurf, OpenAI, Anthropic, Cursor, Perplexity, and ElevenLabs.

Vivek Sharma, Stripe’s head of revenue automation, reported that Nvidia successfully migrated its “entire subscriber base” to Stripe Billing in a remarkably short timeframe of six weeks. This process, typically taking many months for businesses, represented the “fastest-ever migration to Stripe Billing.” (Nvidia was already utilizing Stripe Payments.)

Additional Announcements

Stripe also revealed several other updates, including:

Support for 25 additional payment methods, such as UPI and PIX, expanding its total to over 125.
The integration of Klarna into Stripe’s consumer payments product, Link, scheduled for this summer.
Expanded compatibility for Stripe Terminal with third-party hardware, beginning with Verifone.
The launch of Managed Payments, a comprehensive merchant-of-record service designed to facilitate market entry by handling global taxes, fraud prevention, dispute resolution, and fulfillment.
The introduction of Smart Disputes, utilizing AI to automate dispute handling processes.
Expansion of Stripe Tax availability to 102 countries, up from 57 last year, and enhanced automation of the complete tax lifecycle.
Global Payouts, enabling businesses to disburse funds to customers, contractors, and other parties using only an email address.