(bright upbeat music)
Hi everyone, I'm Kathleen Kranzlin,
product marketer for Payments.
Earlier today you heard all about the updates we're making
across the three pillars of Stripe's portfolio.
Global payments helps you optimize the payments experience
for every customer, anywhere in the world.
Embedded payments and finance
to help you extend your platform's offerings beyond core payments.
And revenue and finance automation
to help you monetize in new ways, and in more markets...
In this talk, we'll cover our global payments roadmap
and dive deeper into what's to come.
Everything we build starts with our customers.
Millions of businesses use Stripe to accept payments,
grow revenue, and accelerate new business opportunities.
And from these conversations we've had with you all,
we've heard a couple of key themes.
You want better payments performance to help you increase revenue,
minimize fraud, and lower costs.
You want to provide localized buyer experiences without the operational toil
so you can expand to new markets faster
and better serve your global customers.
And you want Stripe to be more interoperable
so that we're plug-and-play with the rest of your existing payment stack.
Well, we heard you.
Over the next 20 minutes,
we'll share what you can expect from our roadmap
across these three areas, this year and beyond.
Now with any roadmap, it's possible that some of these areas might change
as we evolve what we build based on your feedback.
So let's start with how we're helping you get the best payments performance.
I'd like to welcome Marcia Jung, product lead for payments performance.
Marcia is our resident expert at figuring out how payments
can be a lever to help you make more money on every transaction.
Marcia, over to you.
(upbeat music)
(audience applauding)
Great, thanks Kathleen.
That's exactly right.
Every basis point matters,
especially when you operate at the scale that many of you do.
So, you've done the hard work
to get your customers to click “Buy” or “Subscribe,”
but your job is hardly over there.
You face a constant tug of war to maximize acceptance
and really provide the best possible customer experience
while also fighting fraud to minimize your losses.
And this balancing act is only getting harder to do right.
You have new regulatory changes that are popping up,
new, different fraud types, and more.
At Stripe, we're helping you manage that complexity for you,
while also giving you the tools
to customize our products to your specific needs.
Today, I'm excited to highlight our roadmap,
designed to give you easy access to all the features you need
to run a truly optimized global payment stack.
This includes capabilities
across the full payments lifecycle,
from authorization, to cost, to fraud,
all the way through to disputes,
and to deliver highly personalized optimizations
and recommendations to customize these features
to your specific business needs.
This is all in the service of helping you squeeze out
every bit of value from your payments.
Let's start with our enterprise acquiring and authorization features.
At Stripe, we partnered closely with the global card networks
to make sure you have access to the latest features and capabilities
that the networks have to offer.
These are things like network tokens
and real-time card account updater,
which we offer in over 45 different markets.
And also features like extended auth windows
and multicapture, as well as local debit rails
like PINless debit in the US.
Users like Hertz and Uber rely on these features today
to help maximize auth rates, lower their costs,
and also create better experiences like seamless tipping.
And over the next year, we'll continue to add support
for the latest network card capabilities.
So, for example, in the second half of the year,
we'll be adding support for hotel and car rental metadata
for users who are in the travel industry
to help you lower your network costs.
We'll also be expanding features
like extended auth windows and multicapture
to more networks like Cartes Bancaires in France.
Moving on to authentication.
Depending on the region,
you're actually required to authenticate payments
with the goal of reducing fraud in the ecosystem.
But adding this friction to your flow
can actually cause customers to drop off
from your payments flow by up to 20%.
We recently launched an upgraded ML-based authentication engine,
and thanks to this engine we're able to shrink the number
of 3DS challenges while also reducing fraud by 8%.
And this is all while ensuring that you stay compliant with local regulations.
We're also focused on enabling more flexibility
and customization for different payment flows.
So whether you want to use Stripe for both authentication
as well as payments processing,
or as part of a multiprocessor setup,
we'll have a solution for you.
Today, 3DS import is available if you authenticate outside of Stripe.
And later this year we're launching 3DS as a standalone service
so that you can use our authentication
on all of your global payments volume,
whether that's on Stripe or elsewhere.
Next, for fraud, Radar has reduced dispute rates
by over 10% in the last year alone.
With the launch of Fraud Insights
and Radar Assistant this morning,
we've made it dramatically easier to write
effective custom rules for your business.
And later this year we'll extend Radar's robust machine-learning productions
to include more payment methods, starting with ACH and SEPA.
And we'll also be launching a brand new Radar API later this year
so you can use our ML-based fraud scores in your own custom fraud stack.
Finally, in the case of a dispute,
we're also helping you manage that too.
Last year we launched support for Visa's Compelling Evidence 3.0 program
and we saw dispute win-rates more than double.
In the second half of the year,
we'll be launching API support for this program
and we'll also be launching an integration
with Visa's Verifi Solutions
to help you reduce dispute rates
and get you out of monitoring programs.
In addition to giving you access to a ton of features you need,
we also optimize how these features are being used
to get the best performance out of Stripe.
So for example, our Advanced Payments Engine
helps you decide things like,
“How should I format my auth message?”
“Does it vary by issuer?”
“If a transaction is declined, should I be retrying it?”
If so, on what rails?
We look at everything we know about a transaction, a card,
an issuer, across the entire Stripe global network,
and we use AI to make these decisions in real-time.
And this approach has helped users like Twilio and River Island
improve auth rates by over 3% when moving to Stripe.
And it's also a big reason why Forrester Wave recently recognized Stripe
with a perfect score in payments performance optimization.
Looking ahead, the next big focus area for our roadmap
is in personalizing the Advanced Payments Engine
for your specific business.
We'll take into account how trade-offs across authorization,
fraud, and cost vary from business to business.
So for example, a SaaS business or an online retailer
may take very different views of this trade-off
and so we're going to treat them differently.
As I mentioned, the payments engine is designed
to do the heavy lifting for you,
but we also know that some of you
want more control over changes to your setup,
and that's where personalized recommendations come in.
Stripe has a team of dedicated experts to work with you
to get the best performance out of Stripe.
And later this year, we're bringing this deep expertise
to you directly in the dashboard
through our Payments Insights Hub.
With this new Payments Insights Hub, you'll be able to dig into
where in the funnel are my customers dropping off?
You'll also get personalized recommendations
like which payment methods to add,
when to be triggering 3DS, all delivered at your fingertips.
And most importantly, you'll see the estimated dollar impact
for your business for each of these changes.
This will help you more easily understand where to be prioritizing resources
to really move the needle on your business.
So whether you want Stripe to automatically optimize
your payments for you or fine-tune it yourself,
we're really helping you extract the most value out of every transaction.
And with that, I'd love to introduce
Angel Maredia, product manager on our Payments team,
and she's going to walk you through what we're building to help you
create better buyer experiences anywhere you want to sell.
(upbeat music) (audience applauding)
Thanks, Marcia.
Today, it's easier than ever for customers around the world
to discover new products and services.
Borders coming down for customers
can be a boon for your business.
But it hasn't really gotten easier
for businesses to operate in new markets.
Setting up operations in a new country
requires evaluating localized prices,
setting up legal entities, determining tax requirements,
contracting with individual payment method and banking partners.
These are all complex and time-consuming processes.
At Stripe, we're building tools to enable you to enter
new markets as quickly as possible
while still providing buyer experiences
that feel native and familiar to every customer, wherever they are.
The best way to do that is by leveraging our Optimized Checkout Suite,
a set of tools and prebuilt payment UIs
designed to optimize revenue
and customize global payments experiences.
One of the tools that we built
in the Optimized Checkout Suite
addresses the issue of local currency presentment.
It's one of the most effective ways to boost conversion in new markets.
In fact, 90% of buyers make a purchase
in their local currency when given the option to do so.
Now, you could manually set static prices in each currency,
but this can be problematic
since FX rates are constantly in flux.
Even the most volatile currency pairs of Australian dollars and US dollars
can fluctuate pretty dramatically.
So this leaves your business at risk
for either underpricing your product in local currency,
meaning lost revenue,
or overpricing your product, meaning lower conversion.
We built Adaptive Pricing
so that you don't need to do this yourselves anymore.
It ensures that your buyers will see local prices
that are backed by the most up-to-date
currency conversion rates.
Users on Adaptive Pricing have seen an average
of 17.8% uplift in cross-border revenue.
Now, those of you in the US, UK, Canada, and Eurozone
can enable this in your Dashboard today.
And we will continue to expand support globally.
We're also expanding support from checkout and payment links
to the Payment Element by the end of this year.
Beyond localizing just prices,
offering local payment methods
can create powerful opportunities
for highly converting checkouts.
In fact, 85% of customers abandoned their cart
if their preferred payment method isn't offered.
Stripe today provides access
to more than 100 payment methods,
and this year we'll expand support to dozens more,
including MobilePay, Reshnung, PayTo,
which is a real-time payments provider in Australia,
and even crypto.
Now, we've also heard from you
that you're seeing your greatest areas of economic opportunity
in regions like Germany, UK, France,
Australia, Japan.
So you can expect to see more of a focus on those regions this year.
Now, while we're increasing the number of payment methods that we offer,
we've also heard from you that you need additional controls
to manage those payment methods.
For example, you may only want to show certain payment methods
for a particular cart value.
We've launched our Payment Method Rules Engine
to allow you to set custom rules
for which payment methods show up
right from the Stripe Dashboard, no code required.
Businesses using the Payment Element
can also now A/B test payment methods with no code.
You'll better understand the business impact each payment method will have
across revenue, conversion, AOV, share of wallet
without using expensive dev and data science resources.
Later this year, we'll roll out these capabilities
to businesses using Checkout and Billing.
Now, while offering additional payment methods
can have a huge impact on your revenue,
some markets have especially high payment method fragmentation.
Take South Korea,
where no single payment method is predominant.
Customers use dozens of local cards and wallets
and setting up every Korean payment method
to get 100% penetration on your own
would be incredibly resource-intensive.
What's more is that some markets have additional challenges
like regulatory complexity
and data localization requirements.
These are difficult problems for us to tackle,
let alone businesses that have a ton of other concerns
outside of ensuring that payments operate effectively.
So to help you localize your buyer experience
in these highly fragmented markets,
we're integrating with local partners
and building their deep payment stack right into Stripe.
This local-market access model is now live in South Korea
and gives you coverage across all local cards and four wallets.
That's near complete local payment method coverage.
For you, this means, one, higher revenue.
We're seeing upward of 98% auth rates on Korean cards.
Two, no integration changes
if you are on our optimized payment services
like the Payment Element or Checkout.
And then finally, three, no need to set up a local entity
to accept these payment methods.
We'll expand this local market access to Nigeria in July,
and Indonesia by the end of this year,
with many more countries along the way.
Now, to close this out here and to tie this all together,
the impact of everything I've just talked about is significant.
Businesses who use the Optimized Checkout Suite
saw 11.9% more revenue on average.
So our vision is to lower the barrier to entry to going global,
enabling you to create hyper-local buyer experiences
that maximize conversion, authentication,
and ultimately, your top-line revenue.
For our last payments roadmap theme,
I'll hand it over to Roshan Sadanani,
product lead for Payment APIs,
to talk about how we're creating a more open ecosystem.
(upbeat music) (audience applauding)
Thanks.
All right. Thank you so much, Angel.
You've heard a lot today
about how we're relentlessly focused
on optimization and conversion,
ensuring that you're capturing as much revenue as possible.
We want to spend a few minutes though, zooming out a bit
to share how we're shifting our approach
to product development and thinking about
an open payments ecosystem.
We know many of you have come to Stripe
excited by the things we just talked about,
but with existing integrations that are difficult to change.
We have some good news.
If you're working with multiple processing partners,
we're working to embrace flexibility and composability in our stack
so that you can use Stripe to power those integrations.
To do this, we're launching features that enable interoperability
with other processors outside of Stripe.
Now, Stripe Tax is already in this category.
You can use the Stripe Tax API in standalone mode
with any or multiple processors.
And you heard a little bit earlier from Marcia about our plans
to support 3DS in standalone mode as well.
This year we'll also make it possible
to use your own shipping, tax,
or business logic with Embedded Checkout.
The idea here is to make Stripe more flexible to meet your needs.
As of today, we're also announcing another flexible offering.
Stripe's Payment Element is now interoperable with other processors.
This change is made possible
through our new Vault and Forward API.
This means you get the benefits
of Stripe's Optimized Checkout Suite,
all the good stuff you heard earlier
like A/B testing and dynamic payment methods,
but even if other companies are processing the payments.
And, you can manage a phased rollout of Stripe
into your payments infrastructure.
We know that handling multiple processors can be complex.
Some of you who've built these integrations know that as well,
but we don't think you should have to increase the size of your payments team
tenfold in order to get the advantages.
In the future, you'll be able to do things
like leverage our vaulting capabilities
across network tokens and card account updaters,
backed by our five nines of reliability.
You'll be able to unify transactions
including reporting and reconciliation
into Stripe's APIs and Dashboards.
And you'll be able to use additional Stripe products
like Stripe Billing and Stripe Radar
with any payment processor.
Our Vault and Forward API, today, supports six processors,
and we're continuously adding more integrations.
I really do want to underpin
that we're making deep investments in this space
to give you access to more of our infrastructure
so that you can grow faster.
Stripe Billing and Radar will work with other PSPs
by the end of this year.
And we want to hear about other tools
that you'd like us to modularize first.
Please do let us know,
we'd love to hear from you about that.
Now, our open ecosystem ambitions
extend beyond online payments.
We're continuing to make deep investments
in unified commerce as well,
allowing you to design a seamless customer experience
wherever your customers transact,
whether that's online sales or in person.
So, let's spend a minute talking about in-person payments.
Stripe's hardware ecosystem is rapidly expanding.
Stripe Reader S700, our latest smart reader,
is now available in 23 countries globally.
It allows you to use prebuilt elements on the card reader
to accept customer information,
like an email for an email receipt,
or you can run your entire point-of-sale application
on the device itself for a customized, all-in-one software offering.
No more fumbling with multiple devices at checkout.
But we also understand that this may not work
for every business, and that many of you want even more customization,
down to the hardware.
We're excited to share that we're also investing in hardware composability
with partners like Elo and Sumni to enable you to build custom hardware
by embedding Stripe components in third-party devices.
Some examples of this are this touchscreen device provided by Sumni,
which is great for ordering food.
Or a handheld device with a printer,
which has been popular with users like Oddle and HitPay
for tableside ordering and checkout.
These devices are actually on demo in our unified commerce booth now,
so we'd invite you to swing by and check those out in person.
Of course, in-person payments have evolved beyond hardware too.
Last year we announced Tap to Pay on iPhone
to power a new generation of in-person checkouts.
Tap to Pay enables you to accept in-person payments
with only an iPhone or Android device
and no dedicated payments hardware.
We're making deep investments here too.
Tap to Pay on iPhone is now available in Australia,
the UK, and the US,
where Alaska Airlines is using it
for in-flight purchases at 40,000 feet.
Tap to Pay on Android is now available in 23 countries.
Lastly, we're making it easier
for even the largest of businesses
to embed Stripe's in-person payments in their existing stack
through new point-of-sale and PMS integrations
with providers including Oracle OPERA,
Cegid, and Adobe Commerce.
On the features front, we're adding support for the payments capabilities
you all have asked for like offline mode, dynamic currency conversion,
surcharging, and expanded fleet management.
We're also adding new payment methods to Stripe Terminal,
like girocard in Germany
and Cartes Bancaires in France, this year.
So, as you can tell, we're working on a lot in Payments
and there's even more here that we haven't had time to share.
If there's one thing we want you to leave this talk with,
it's that at Stripe we're continuing to obsess
about the details when it comes to payments
so that you don't have to.
With that, we're going to take some questions
and so I'd like to invite our other speakers back on stage.
All right, so payment methods
have been a little bit of a theme so far today.
What other payment methods are on the roadmap?
Angel?
Yeah, let me just take a step back
and actually talk about
how we think about payment methods more broadly.
So, I like to think about them in terms of two goals.
There's “how do I increase reach
or depth in a particular market?”
And then there's a second goal of "how do I actually go increase my sales
or go enter into a net new market?"
So let's take that first bucket of increasing reach or depth.
As I highlighted earlier, we've heard from a lot of you
that Germany, UK, Japan, Australia, France...
that these are really regions where you're seeing a lot of opportunity.
So we're shipping payment methods there.
Like I said, MobilePay, Reshnung, we have Revolut Pay coming out,
PayTo is also coming out in those regions.
So that's just like a subset of the giant list that came up behind me.
That doesn't mean that we're just focused on those regions.
So we have Twin, Swish, StatusPay,
just like name a couple that are in other regions as well,
but you're going to see a big focus in those regions in particular.
And then the second goal of how do we increase sales and net new markets,
that's the local-market access model that's live in Korea today.
And I think what makes us really excited about it
is that if you're using our Optimized Checkout Suite,
you really don't need to do much to go just suddenly sell into a new market.
No integration changes, no local entity,
no changes to the back office.
So we're really excited about that
as a way to really enable you all
to go sell into new markets much faster than ever before.
Thank you.
As we heard in the talk as well,
Stripe, focusing on making our payments platform interoperable
and really plug-and-play with the existing payment stack
is a bit of a shift.
Roshan, can you tell us a little bit more about why Stripe
is prioritizing interoperability?
Yeah, I think a couple of reasons.
I mean, one is it's strategically valuable for us,
if we're thinking about it that way.
I think we believe pretty strongly in the capabilities that we've built
with our services offerings
like Stripe Billing and Stripe Radar,
which are a few of the ones that we named.
And so we've had a lot of customers,
like you all come to us and want to use those on their own.
And so part of it is there's a sort of strategic benefit for Stripe,
but I think the other part of this is that we recognize
that there's a lot of you who are operating with multiple processors
and historically that has been a barrier to adopt some of those services.
So it's sort of that we see an opportunity
but also we want to meet you all where you are
when we've talked to you as part of those integrations.
And so I think the dual nature of that
is really what's caused that strategic shift for us.
The other part I'll add is, I think there's a sort of...
Yeah, let me just pause there.
Yeah (chuckles). Cool.
Thanks for that additional insight.
Switching gears a little bit:
one of the questions we get a lot from our businesses
are how they can get better auth performance.
Marcia, can you tell us a little bit about
some of those levers our businesses should be focusing on?
Sure, where do I get started here?
I could go on and on about it.
But, you know, auth rates are very personal, right?
So it varies from business to business,
but if I had to summarize here,
I would break it down into three parts.
The first is, are you taking advantage
of everything that the networks are offering here?
So the things I mentioned around network tokens
a card account updater, those are really just basics.
The second piece I think I would mention
are some of Stripe's ML or AI-backed capabilities.
So these are products like Adaptive Acceptance,
as well as Smart Retries for the Billing customers.
This is actually helping recover insufficient funds.
And so the third piece, I think, when we think about auth rates
is really partnerships with the ecosystem.
So, really, it's the issuers that are ultimately
making these authorization decisions.
And so that's where we're really partnered with them
on the Enhanced Issuer Network.
We're actually sharing data signals
so that we can make, jointly, more informed decisions there.
And the last plug I will make is, again,
on that Payments Insights Hub that's coming later this year.
We're actually going to be surfacing personalized recommendations on how to
improve things like auth rates and other performance metrics.
So that, again, if you don't have access to me right now,
we'll be able to surface more of that in the Dashboard.
Awesome, thank you.
You touched on ML and AI a little bit in your answer,
so I'd like to open it up a little bit more.
What role do you all see AI and ML
playing in the future of Stripe's payments platform?
I can take this to start maybe.
So I already mentioned, I think,
about the Advanced Payments Engine
and how we're leveraging ML and AI today
to make all these micro-optimizations
or decisions across the charge path.
And so this is just a core pillar
of how we think about payments performance.
And so we're going to continue to invest very heavily in that,
so that, again, we're getting every bit of value out of each payment.
And then I would say, sort of the second bucket
is using ML and AI to improve
productivity of our users on our platform.
Those are some of the things that you've probably heard about around
Radar Assistant or Sigma Assistant.
We're helping users who are maybe
less experienced with payments, get better,
be able to get data and information and insights out of Stripe's products.
Yeah, I think like purpose-built AI
is how I might describe that one for the user side of things.
It's like, why write SQL when you can get an LLM to do that for you?
And it turns out LLMs are pretty good at writing SQL
once you train them on the right stuff, right?
And so I think that some of the Docs AI stuff that we're working on
that was talked about in the keynote this morning
is also, I think, quite interesting.
It can make the integration time
to go live much faster with Stripe.
And so I think some of those investments are really exciting to see
and we'll probably double down on quite a bit of those too.
Plus one to that. I think we also talked
a lot about payments performance, but ML also plays a role
when it comes to our Optimized Checkout Suite as well,
when it comes to dynamic payment methods,
showing which payment methods we think are higher-converting for your buyers.
So it really is like a thread that goes through all of our products
from buyer experience, payments performance,
to Radar, and to Billing.
So it's a thread that's underpinning a lot of our Stripe development.
All right, I think that's all the time that we have.
We hope this preview into what our Payments team
is building has been valuable to you all.
To learn more about what we're building
and talk to any of our experts here
or to ask any questions that we didn't get to today,
please make sure to come find us at the demo desks.
Thank you, everyone.
Thank you. (audience applauding)
(bright upbeat music)