Stripe, doubling down on embedded finance, de-couples payments from the rest of its stack

Stripe, the largest fintech firm still privately held, is changing its approach by separating its payment services from its other financial services. This is a significant shift as previously, businesses had to be payment customers to use any of Stripe's other services. The company is also adding new embedded finance features and AI tools. Stripe's decision to remove the requirement to use its payments API could reduce friction for customers who want to use its other tools but do not want to fully commit to Stripe's larger platform.

In addition to this, Stripe announced a new version of its checkout experience that uses AI to offer a more precise selection of payment options to customers. It is also launching a new tool called "Radar Assistant" for fraud detection. The company is expanding its embedded finance efforts, Stripe Connect, with several upgrades. Stripe is also introducing usage-based billing, with Anthropic as a high-profile customer using the feature to tailor its charges and bills for its API.

Key takeaways:

Stripe is changing its approach by de-coupling payments from the rest of its financial services stack, allowing businesses to use parts of Stripe without being payments customers.
The company is adding a number of new embedded finance features and AI tools, with over 50 new features announced at its developer event, Sessions.
Stripe's new AI tooling will be used in its checkout experience to provide a more personalized selection of payment options, and in its fraud detection services with a new tool called 'Radar Assistant'.
Stripe is also expanding its embedded finance efforts, Stripe Connect, with several upgrades and is introducing usage-based billing, with Anthropic as a high-profile customer using the feature for its API.

Stripe, doubling down on embedded finance, de-couples payments from the rest of its stack | TechCrunch

Key takeaways:

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