⚡ Stripe AI Launch

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Hey Fintech Explorers—Welcome back to Money Explored, the essential Sunday newsletter to stay ahead in fintech!

This week, fintech giants are flexing their AI muscles. Stripe is rewiring fraud detection. Visa’s agents are about to shop for you. And PayPal is kicking off a payments revolution—in-store and on the ground.

Here’s what we’re diving into:

• Stripe launches an AI model trained on billions of transactions. ⚡

• Visa gives AI agents the power to make purchases for you. 🛒

• PayPal debuts its first contactless wallet for stores in Germany. 💳

And that’s just the start…

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Let’s dive in!

🌎 3 Major Stories

Dive into this week’s top Fintech developments.

Stripe Launches Game-Changing AI Model for Payments ⚡

The Big Story 📰: Stripe has unveiled a range of cutting-edge products at its annual Stripe Sessions user event, including a groundbreaking AI foundation model specifically designed for payments, stablecoin-backed accounts, and a new Orchestration offering. This AI model, trained on tens of billions of transactions, significantly boosts fraud detection capabilities, increasing the identification rate of card-testing attacks by 64% almost immediately. Additionally, Stripe aims to facilitate seamless multicurrency transactions for businesses through partnerships with startups like Ramp and Airtm, while improving user experience with enhanced dashboard functionalities to manage various payment providers flexibly.

Key Takeaway ⚡️: Stripe's innovations mark a transformative leap in fintech, especially with its AI-driven foundation model for payments. The ability to adapt and learn from vast transaction data presents a game-changing advantage in fraud prevention, which directly impacts businesses' bottom lines. As the digital payment landscape continues to evolve, Stripe's approaches signal a move towards more resilient and efficient systems, appealing to merchants and consumers alike. By embracing these new technologies, companies can not only enhance operational capabilities but also strategically position themselves to thrive in an increasingly competitive environment.

Visa Unleashes AI Agents to Shop for You! 🛒

The Big Story 📰: Visa has officially entered the AI-driven commerce arena with its newly launched Visa Intelligent Commerce platform. Announced at the company's Global Product Drop event, this innovative system allows AI agents to not only recommend products but also complete transactions on behalf of users, effectively giving AI access to users’ payment methods. Emphasizing security, Visa integrates tokenized digital credentials and allows consumers to set strict parameters for spending. With partnerships spanning major AI companies, Visa aims to revolutionize online shopping by enabling seamless transactions while addressing consumers' concerns over security and control.

Key Takeaway ⚡️: Visa Intelligent Commerce is a game-changer in how consumers engage with shopping, marking a major shift from traditional buying experiences. This platform not only simplifies transactions by eliminating manual entry of payment details but also empowers users to maintain control over their spending with set limits and categories. For fintech enthusiasts and industry professionals, understanding this platform's implications could shape how businesses evolve in response to consumer preferences for automation combined with security. As AI integration becomes unavoidable, this could redefine the marketplace, making it essential for developers and companies in fintech to adapt and innovate alongside.

PayPal Goes Contactless in Germany: A New Era! 💳

The Big Story 📰: PayPal is set to transform in-store payments in Germany with the launch of its first-ever contactless mobile wallet, debuting this summer. Through the updated PayPal App, users will be able to make secure, easy payments by simply tapping their phones at locations accepting Mastercard contactless payments. Additionally, PayPal will introduce its “Ratenzahlung To Go” service, allowing customers to pay for in-store purchases in flexible installments. Users can also earn cashback on eligible purchases through activated offers in the app. This bold move marks PayPal's largest investment in product development for the German market, emphasizing its belief that digital payments can be better than cash.

Key Takeaway ⚡️: PayPal's expansion into in-store payments represents a significant shift towards the modernization of physical transactions. With features like mobile wallet functionality and flexible payment options, this initiative is poised to attract consumers seeking convenience and rewards. For industry players, this is an opportunity to take note of the changing landscape; as payment experiences evolve, it’s essential to innovate and adapt to consumer demands. The successful implementation of these features could reshape shopper behaviors and expectations, making it crucial for other fintech companies to analyze and enhance their payment solutions to stay competitive in this transforming market.

🔍 What Else We’re Watching

Keep an eye on these evolving Fintech Narratives.

• Ant International & Barclays Team Up for FX Solutions 🌍: Ant International has partnered with Barclays to streamline foreign exchange (FX) costs and risks for businesses. Their collaboration marks the first successful intra-group FX transactions, integrating Ant's TST AI FX Model into Barclays' BARX NetFX platform. This alliance aims to offer precise FX hedging and lower overall costs, enhancing liquidity management and maintaining price stability. As businesses face increasing FX exposure while exploring new trade avenues, this partnership promises to deliver competitive rates and improved treasury solutions for global companies.

• Ripple Set to Reclaim $75M in SEC Settlement 💸: Ripple is poised to recover $75 million from a $125 million penalty as part of a settlement with the SEC, subject to court approval. Although SEC Commissioner Caroline Crenshaw dissentingly criticized the agreement, believing it undermines investor protections, Ripple executives have remained surprisingly quiet. The plan involves asking the court to dissolve a prior injunction, with a process still needing approval from Judge Torres and the SEC. This ongoing saga continues to stir debate over crypto regulations and investor rights in the evolving financial landscape.

• Celsius Founder Sentenced: 12 Years for Fraud 🚨: Alex Mashinsky, the founder of Celsius, has been sentenced to 12 years in federal prison after pleading guilty to commodities fraud and manipulating the value of the Celsius token. His firm, once a titan in the cryptocurrency landscape, filed for bankruptcy in 2022, locking up $4.7 billion in customer funds. The U.S. Attorney's office branded his actions as a breach of trust, as he lured retail investors with promises of safety, only to mismanage their assets and manipulate his token's value for personal gain. As victims recount their struggles—some experiencing homelessness—Mashinsky’s case exposes troubling vulnerabilities in the crypto sector and raises concerns about investor protection.

💸 Major Money Moves

Tracking big market shifts in Fintech this week.

• Coinbase’s Bold $2.9B Deribit Takeover 🚀: In a game-changing move, Coinbase is set to acquire Dubai’s Deribit, a leading crypto options exchange, for a whopping $2.9 billion, closing by year’s end. Deribit commands 85% of the global options market, boasting a staggering $1.2 trillion in trading volume last year. By integrating Deribit’s tech, Coinbase aims to enhance its product offerings and diversify revenue, with a cash offer of $700 million and 11 million shares on the table. Analysts are buzzing, calling it potentially the best value deal in crypto history—talk about a power play!

• eToro's $500M IPO Push: Game On! 🤯: eToro, the social investment platform, is set to raise $500 million in its U.S. IPO, aiming for a juicy $4 billion valuation. With plans to sell 10 million shares priced between $46 and $50, this Israeli-born fintech looks to bolster its presence in the market. Initially halted due to market volatility, the firm is back on track with substantial backing from BlackRock, which is interested in buying $100 million in shares. As competition heats up in the fintech space, eToro, with 40 million users, is eyeing a Nasdaq debut under the ticker ETOR—watch this space!

• Finom Raises $105M for Growth 🚀: Finom, the Amsterdam-based digital bank tailored for small and medium-sized businesses, has snagged €92.7 million (around $105 million) in a growth investment from General Catalyst. This unique funding round comes with no equity stake for the investors, ensuring that the capital will solely fuel growth initiatives, not operational costs. Kos Stiskin, the co-founder, highlighted that their core operations are financially robust, allowing them to invest directly in acquiring new clients. With over 100,000 customers across five countries, Finom is not just banking—it’s also leveraging AI for accounting and lending across Europe.

Thanks for reading and have a relaxing Sunday,

Derek,
Editor, Money Explored.