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Hello everyone. Thanks for joining us this afternoon.
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I'm Kenny Wolf and I lead core payments here at Stripe.
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We shared a lot of product updates at the keynote this morning and in this
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session we're going to dive deeper into what's coming across Payments and Radar.
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A lot is changing across the economy right now.
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Companies are launching and monetizing faster than ever.
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We see 20% of Stripe Atlas startups launch their first paying customer within
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less than 30 days of incorporation. That's about twice the pace we saw in 2020.
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And these companies are global by default.
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We see AI companies selling into twice as many companies in their first year
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relative to SaaS companies four years ago.
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And how customers find you is changing too.
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AI is guiding more customers to your websites. And last holiday season,
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we saw the traffic driven by AI referrals up almost 700% year over year.
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So that means more markets, more channels, and more opportunities.
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But every piece of this expansion is increasing your surface area for
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fraud. We've seen new vectors arising for fraud too,
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such as free trial abuse, which is up more than twofold in the past six months.
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Through our daily conversations with users,
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we've emerged three themes on how Stripe can help you. First,
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you want to sell everywhere in every market and every channel without
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constraints. Second,
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you want to maximize revenue at every single one of those touch points,
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from the checkout that your customer sees to the invisible authorization logic
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that is working behind the scenes. And third,
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you want to prevent fraud across the entire customer lifecycle,
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and you want us to adapt as fast as the threats do. In this session,
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we're going to dive deeper into what we're building across these three areas.
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And so we're going to start with selling everywhere,
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and I'd like to welcome Susan Lee to the stage. Susan, take it away.
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Thanks, Kenny.
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Expanding internationally used to be a major milestone for a business.
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You'd start in your home market, you'd prove the model,
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and maybe you'd carefully consider one to two countries to expand in every year.
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Today, that playbook is pretty much obsolete.
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For most AI, SaaS, and digital businesses, the internet is the default market.
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And the moment a product launches, it needs to be accessible everywhere.
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Take Gamma, an AI platform for creating presentations based here in California.
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Within days of going live,
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they noticed they had thousands of customers in India, Brazil, Kazakhstan,
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and more. And in fact,
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more than 85% of their customers were coming from outside the US.
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But even with global demand,
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buying preferences still vary dramatically by country. And when Gamma launched,
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you could only pay by credit card and in USD.
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That meant they were leaving a lot of money on the table.
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So we built the Optimized Checkout Suite to solve exactly this problem,
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helping you create local buying experiences wherever your customers are to grow
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your global revenue. And this year,
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we're increasing the number of payment methods you can access through the
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Optimized Checkout Suite from 125 to more than 140,
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including Scalapay in Italy, MoMo and Vietnam, and GCash in the Philippines.
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But those numbers aren't enough if every payment method comes with caveats.
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And so we're rebuilding our platform to make every payment method work across
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borders, across transaction types,
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and across currencies.
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So one of the first payment methods that we're rolling out this way is UPI,
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which is the dominant payment method in India with over 500 million users.
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Now until recently, across all major PSPs and Stripe is included in this set,
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you needed a local entity to offer it. Today,
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you can turn on UPI from right here in the US with a click in the Dashboard.
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And when Gamma did this,
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they saw their UPI transactions surpass card transactions that very same day.
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And within a month, they saw their revenue in India grow 22%.
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And that's because local payment methods drive conversion,
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and so does local pricing. So that's where Adapative Pricing comes in.
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It localizes prices in more than 150 countries and drives more than a 17%
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uplift in average cross-border revenue.
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And we're rolling out several new improvements. So first,
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Adapative Pricing will now support recurring transactions so that subscription
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businesses can display prices in local currencies,
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which increases conversion by an average of 4.7%.
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Companies like Figma and Cursor are already using it to expand in their global
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markets. Second,
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Adapative Pricing is now powered by a new AI model that better predicts the
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right currency for each customer. So previously,
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we used a buyer's IP address to detect the right currency,
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but that doesn't really catch all the edge cases.
For example,
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think about an American buyer on vacation in Mexico.
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They'd still see prices in pesos even though they want to pay in dollars.
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And that extra cognitive load can lose a buyer entirely.
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Now, our AI model analyzes dozens of session signals,
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things like device type and the past currency you've used to dynamically predict
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the right currency. And third,
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we're bringing market specific price recommendations to Adapative Pricing so
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that you can not only convert the right prices,
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but set the best price to begin with.
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These will take into account cost of living, local competition,
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even willingness to pay,
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and they're all powered by the data that we see across the Stripe network.
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They'll even take into account cultural preferences like rounding to familiar
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numbers. So I want to do a quick audience poll. Can anyone tell me,
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and feel free to shout it out,
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what are the most common last two digits for a US price? Yes,
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that is right. It's 99 cents.
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So some of you may have watched a lot of late night info commercials like I did
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back in the day to know 99 cents means you're getting a deal.
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But in places like Japan,
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99-cent pricing can actually feel really gimmicky and Japanese buyers strongly
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prefer round numbers.
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So Adapative Pricing will bake into account these local
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preferences into its recommendations,
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so you don't have to know every market's quirks. Now,
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localizing payments is just the beginning.
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Operating a global payments business brings a whole new set of challenges.
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Things like keeping up with standard VAT rate changes to be compliant in every
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country,
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or maybe you're finding yourself using Google Translate to troubleshoot support
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for Polish customer at 4:00 a.m. So if you don't want to have to do all that,
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that's where Managed Payments comes in.
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It's our merchant of record solution that handles local checkout,
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tax compliance, fraud, disputes, and customer support.
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And so what used to take months to launch in each market can now be done in
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minutes. And today,
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managed payments is now generally available for digital businesses.
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And one of the most powerful things about Managed Payments is its flexibility.
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So where you want full control,
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like in your core markets where you may have already invested in your tax setup,
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you can keep doing so.
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And when you want to go live quicker or test new products,
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you can use Managed Payments at the country or transaction level.
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And soon,
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Managed Payments will automatically route transactions through Stripe's local
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entities in several markets.
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So that means you get the benefits of higher auth rates and more relevant
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payment methods in addition to all the benefits of a merchant of record.
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And then finally, selling everywhere, it doesn't just mean new markets.
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It also means entirely new channels like agents.
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So we mentioned in the keynote this morning that we are building the
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infrastructure for the agentic economy with our Agentic Commerce Suite,
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which now supports new agents such as Gemini and Meta for in-ad shopping
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experiences.
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So we're going to go much deeper on that in our agentic commerce session later
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today, so encourage you all to join to learn more. But for now,
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I'm going to hand it back over to Kenny,
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who's going to share more about what we're building to help you capture more
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value from every transaction.
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All right. Thanks, Susan.
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We work hand in hand with our users every day working on ways to help them grow
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their businesses, whether that's testing new products, debugging errors,
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or solving their thorniest payments or business challenges.
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And we think that guidance should be available to you from the moment you start
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building your checkout. And that's why we create a Checkout studio.
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It's our new home in the Dashboard for building a highly performant checkout.
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It's a single place to configure, analyze, and optimize your experience.
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No more need to iterate through multiple code changes and test environments.
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You can do it all in Checkout studio.
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Its embedded AI assistant helps you preview your integrations and find the best
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configuration for your brand,
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and then you can easily pass off the implementation to your favorite coding
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agent. After that,
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you can monitor your performance and slice the detailed data that's available by
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location, by product,
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and more.
You can even debug issues at the individual transaction level.
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So let's say you have a customer who reached out because they were charged an
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unexpected tax rate.
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You can go into Checkout studio and open the session for that individual
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transaction and verify what the customer's country was at the time of the
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payment, therefore ensuring they were charged the correct tax amount.
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We're also expanding the UI types that we support within checkout. This morning,
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you saw us demo the new embedded form.
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We're making checkout even more flexible with this out-of-the-box UI that works
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for a variety of use cases beyond just standard payment pages.
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Think modals, sidebars, chat interfaces, or mobile web.
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And businesses like Mindvalley will be using it to create a seamless,
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integrated user experience. Across all of these checkout surfaces,
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you'll have more control over the look and feel of your checkout.
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You can add custom banners or specific fields to ensure that you match your
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brand.
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We're also investing and giving you more control over your in-person payments
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with Stripe Terminal. First,
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we're growing our hardware portfolio to serve more business use cases.
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Earlier today, we announced the Stripe Reader T600.
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It has an eight inch screen,
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and that means more real estate for you to upsell and provide loyalty
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opportunities. And later this year,
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we'll be providing weatherized readers that are certified for unattended
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payments, so you can install these at parking lots, EV charging stations,
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and more.
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We're also making it easier for you to take in-person payments around the globe.
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By the end of this year, Terminal will be in 40 markets,
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and that includes 15 new markets, as well as Mexico and Hong Kong.
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Lastly, we're adding support for standalone mode.
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So when you get your Stripe Terminal device,
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you can quickly start accepting payments for your in-person payments on these
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readers without a code or point of sale required.
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So all of that helps you get more customers to buy, but after that,
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there are still many reasons that your payment may fail.
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Maybe the user mistyped their ZIP code or used outdated credit card information.
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And if a customer is falsely declined when trying to buy from you,
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40% of them will never return.
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And that's where Authorization Boost comes in.
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It's our AI-powered optimization product that weighs a variety of different
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factors for every single card payment like how does that issuer want their ISO
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message formatted? What gateway should we route through? And more.
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Auth Boost increases auth rates by close to 4% on average while simultaneously
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lowering your network costs by 3%.
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All of this with no effort needed by you.
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Businesses like Notion and Squarespace are using Auth Boost every day.
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And we're continuously improving Auth Boost behind the scenes with ML-driven
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optimizations.
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We're using cutting edge payment developments like data only globally and smart
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PINless debit routing, as well as intelligent decline prevention.
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We do all of this to limit excessive network fees while maximizing your
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authorization rates. And later this year,
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we'll increase your savings even further with L3 data,
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leveraging Visa's latest CEDP requirements,
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and we're going to provide Smart Retries to optimize your recurring payments
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experience. Finally,
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we'll be enhancing the A/B testing capabilities that we announced this morning,
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giving users more control on how you can analyze the results of your A/B tests.
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You can slice by market, by card type,
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where these recurring transactions are affected, and more. Okay,
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so I've shown you how you can maximize every dollar of revenue for your
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business, but what happens when bad actors get involved?
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The fraud landscape has fundamentally changed over the last year,
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and Nicole is going to tell you what we're doing about it. Nicole,
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over to you.
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Thank
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you.
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AI
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is transforming fraud.
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The playbook that worked even just last year doesn't cover what's happening
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today.
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So you of course need protection in the places you're probably already thinking
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about, like accepting a payment. But now,
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with bad actors racking up usage, free trials, and more,
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you also need it in places you simply haven't had to worry about until now.
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So many of you know Radar as our payments fraud tool. Today,
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it's much bigger.
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Radar is now our comprehensive fraud prevention product that helps to protect
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your entire business beyond just the transaction.
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It's powered by the Stripe network,
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which is made up of more than $1.9 trillion in annual payments volume
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from across millions of global businesses,
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which means we can detect fraud that many others simply can't because of our
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scale.
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So let me walk you through the three main ways we're improving Radar this year.
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We're expanding its coverage.
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We're making it more customized to work for your business,
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and we're expanding its reach far beyond Stripe.
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So let's start with coverage.
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Radar now protects you at the very beginning of your customer lifecycle.
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You heard this morning in the keynote,
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we announced Radar's new abuse prevention features,
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which are meant to target some of the fastest-growing fraud types out there,
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like multi-account abuse.
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So this is when a new user signs up again and again to exploit those new user
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perks, and it's a lot more prevalent than you may think.
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At AI companies we're seeing on Stripe,
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more than 14% of the signups are suspected of this. So now to help,
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Radar helps protect you at signup so before a payment is ever made,
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detect those customers,
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whether they're a fraudulent account that's linked to other fraudulent accounts,
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so that way you can separate your real customers from the bad actors.
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And then there's free trial abuse.
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So for the AI companies out there like OpenAI or ElevenLabs,
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this is an existential threat. At scale,
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you can be talking about millions of dollars in wasted compute costs,
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all on users who are never going to convert to your business.
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So now,
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Radar blocks these fraudulent free trials with 95% precision
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and all with one click. That's right. One click.
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And then there's pay-as-you-go abuse.
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So this is when someone racks up usage only for the payments that ultimately
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fail in the end, leaving you with the loss. So to prevent that,
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Radar now helps predict the likelihood of that happening.
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So you can decide if you ultimately want to limit service or request a top off
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or take another action based on your risk tolerance.
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So the bottom line,
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you shouldn't have to throttle your growth to keep abuse in check.
And now with
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Radar, you don't have to. In the coming months,
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we'll continue to roll out these capabilities more broadly,
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both in our Dashboard as well as via API.
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And we're also expanding Radar to cover new fraud types like bot abuse,
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account sharing, and refund abuse. Okay,
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so that's coverage across the full customer journey,
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but you also need coverage every way that your customers may want to pay.
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So historically, Radar has only blocked cards. As of today,
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Radar now blocks all high risk transactions for all Stripe payment methods.
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So that includes bank debits, wallets, BNPLs, stablecoins, you name it,
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Radar has got you covered. Later this year,
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we'll also be expanding to agentic transactions and crypto to help keep you
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ahead of what's coming next.
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And you'll be able to use custom rules so you can really pinpoint the specific
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fraud patterns for each payment method or that are unique to your business.
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Okay. So everything I just talked about is about preventing fraud from your end
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buyers,
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but for many of you out there who are running a platform or maybe a marketplace,
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you also need coverage from potentially fraudulent businesses that you work
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with, not just the end buyers. So these launches are especially for you.
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Radar now helps you to spot high-risk businesses at onboarding and gives
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you tools to prevent account fraud.
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You can get things like AI fraud scores, manual reviews,
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or rules writing capabilities. FreshBooks,
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for example,
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has blocked over 300 additional fraudulent accounts with Radar in just the first
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3 months. But here's the part I really love.
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They're also approving more accounts overall.
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Because they're able to pinpoint that fraud more accurately at onboarding,
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it gives them the confidence to cut down manual reviews and automate onboarding
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for their good customers. So with Radar,
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lower fraud and higher growth.
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We're bringing in more tools to manage account risks later this year.
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So for example,
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you'll be able to identify if a business is at likelihood of going under,
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or maybe they're seeing a rapid spike in disputes,
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and then you can automatically request reserves or pause payouts to prevent that
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loss. On the flip side,
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you can also take these fraud signals to drive growth for your platform.
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So for example,
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you might be able to identify your best customers and give them access to
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Instant Payouts to further grow your revenue or differentiate your platform.
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So whether you're a single business protecting your checkout or a global
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platform managing thousands of accounts, Radar's got you covered.
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But even with broad protection,
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some patterns are just unique to your business,
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and that's where customization is key. Now,
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Stripe can work with your fraud team hand in hand to develop custom models.
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We marry your proprietary data with Radar's global intelligence to
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create a fully bespoke solution just for you.
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So let's imagine you're a retailer,
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send us your product data and we'll help you to catch more disputes.
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Or if you're a ticketing platform,
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you can securely pass your resale data so that we can help you to pinpoint the
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scalpers.
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We've partnered with businesses on custom models and they're already seeing a
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15% reduction in fraud,
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and we're excited to expand availability later this year.
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Finally, we're extending Radar's reach far beyond Stripe.
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We believe that this intelligence shouldn't just be limited to Stripe
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transactions.
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You should be able to use it everywhere that your business operates.
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Today already,
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users with a multiprocessor setup are able to use Radar signals across their
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entire fraud stack.
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Later this year,
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we're giving you access to more signals to use across all of your payments or
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fraud stack. For example,
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you can get the likelihood that a payment is fraudulent or an early fraud
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warning,
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or the likelihood that a business is suspicious based on just their website URL.
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So to summarize, Radar is going everywhere that fraud is,
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from signup to payment, to that final invoice,
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and we're giving you more tools to customize it to your business or to use it
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across your entire fraud stack. Fraud will keep evolving;
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that's a given. But with Radar,
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you'll always be ahead of it.
Let me welcome Kenny and Susan back to the stage,
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and let's get into some Q&A.
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Alright. Let's see. So
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there's obviously been a lot of excitement around agentic commerce today,
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but the question is around consumer adoption, which still feels pretty early.
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What needs to happen for consumers to actually trust and pay through agents?
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I can open that up to either of you.
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Happy to start. I mean,
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I think the honest answer is we don't know exactly how and when the consumer
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behavior is going to shift. That said,
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I think you probably got the hint from the keynote that we're very bullish about
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what's happening here and want to help keep you ahead of it.
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And I think no matter when and how it happens,
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the checkouts that we see today and the manual entering payment information
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already does and will probably feel very outdated sooner than we all think.
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So I think at Stripe,
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how we want to keep you prepared is no matter where we land on the spectrum,
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whether it's agents are mostly for discovery and then the human is in the loop
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for payment or on the other end, fully agent-to-agent transactions,
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with the Agentic Commerce Suite,
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you basically don't need to bet on one of those outcomes,
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and you have the flexibility as consumer behavior shifts.
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Yeah. I think these behavior shifts always feel far away until suddenly they're
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inevitable and that's what we are betting on with agentic. Okay.
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Next question is about the,
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we talked about a lot of additional payment methods that we're adding to Stripe,
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so is there any correlation between offering those additional payment methods
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and an increase in fraud?
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I can take that one if you want. So I think good news is,
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as we just announced here, you will have Radar coverage,
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even if it's a noncard payment method.
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So there's a certain level of safety that you'll get across the board.
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And it really depends on how you've integrated with payment methods.
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If you have a bunch of card-specific logic in how you're doing fraud detection,
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that may need to evolve.
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But oftentimes we actually see less fraud when you add these non-card payment
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methods, because if you think about it,
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a lot of the bank payment methods have stronger authentication, right?
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So the buyer is actually well validated. So generally,
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we see if you offer more payment methods, there's more diversity involved,
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which makes it harder for the fraudsters and you have Radar coverage across the
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board. So generally, good thing.
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Okay. Related question. Nicole,
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you talked about new types of fraud that we're seeing with AI companies being
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pretty wild. Is this something that we're seeing across the board as well,
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or is this more of an AI company-specific problem?
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So we're seeing a broader rise in fraud.
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I think I saw a report recently with something like 60% of businesses are seeing
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a rise in first-party fraud. And some of these fraud types, honestly,
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they're not all new. So free trial abuse we've talked about. I mean,
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SaaS companies have had that in some form for years,
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but I think what's changed is for AI companies, just one,
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the scale that they're operating, and two, how costly it is.
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So for a SaaS company,
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the variable cost of an extra free trial is just often not that high.
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Whereas for an AI company,
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you're paying for the compute services for every free trial.
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So I think the sophistication, the scale, and the cost is fairly
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unprecedented.
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So we're working very closely to develop the solutions for AI companies,
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knowing that as more industries-SaaS, retail,
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financial services, gaming,
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and others-begin to embed more and more AI products or services,
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even think of many of you might have a chatbot,
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then you might be susceptible to this sort of fraud as well.
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So we're developing closely with AI companies knowing that the solution will be
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more broadly applicable.
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Alright. I'm going to close it out with one more question.
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I'll direct it at you, Kenny.
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So it's obviously been an unprecedented pace of change that we're seeing in
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technology. I believe Patrick called it the first quarter of the singularity.
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So how does that change the way Stripe approaches its roadmap and how do we
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think about staying nimble through those changes?
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Yeah, it's definitely changed a lot of how we work across the board.
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So at first,
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it has fundamentally changed how we go through and think about and operate our
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engineering teams.
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And that's something if you think about how it might transform your company,
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we're happy to talk about what's worked for us at Stripe. Second,
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we have a whole new user, right?
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We have these agents that operate very different and have different friction
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points and we'll find and discover in different ways than our human users have.
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Third, we're exposing and using AI within our products.
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It's helping for certain Radar scenarios.
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You saw it with AI assistant for Checkout studio.
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And then lastly,
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we now need to facilitate-we're a developer company historically and APIs
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are one of our premier offerings.
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So we are providing a new shape of API to help
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crypto or an AI or rapidly changing landscape evolve,
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and these are what we're calling frontier APIs.
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And so when you use a frontier API,
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that's an indication that this is a quicker changing API.
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This may be something where we'll be evolving it rapidly.
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We may be deprecating it as we learn more.
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And so you can just be part of that rapid journey with us, with that technology.
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So hopefully that will be helpful.
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Awesome. Well, that is all the time that we have for today. So thanks,
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Nicole and Kenny. Thanks all of you for joining us.