Stripe, the business financial infrastructure platform, today provided an update on the growth of the internet economy in Asia, highlighting Stripe's expanding market coverage and AI-powered payments that support cross-border commerce. The update was released as part of Stripe Tour Singapore, the company's annual product expo in the region.
“Last year, Stripe's cross-border payment volumes in Asia grew by more than 30%. Building on this momentum, we are providing businesses with the tools to accelerate revenue growth, including an optimized checkout suite, the ability to show customers local prices, and advanced fraud prevention tools, helping Asian businesses improve their bottom lines,” said Sarita Singh, regional head and managing director, Southeast Asia, India and Greater China, Stripe.
Cross-border commerce using AI
Stripe's Optimized Checkout Suite, which enables businesses to build high-performing checkout flows, now uses AI to determine which payment methods to show to specific customers. Businesses can also run code-free A/B tests of payment methods, an industry first and available only with Stripe.
These features complement Stripe's new Adaptive Pricing feature, which localizes prices and allows customers to pay in their local currency in 150 markets, including Australia, Hong Kong, India, Japan, Malaysia, New Zealand, Singapore, and Thailand. Adaptive Pricing eliminates the need for businesses to manually price in multiple currencies or deal with fluctuating exchange rates. Stripe research shows that when given the option, 90% of customers choose to pay in their local currency. On average, businesses using this feature see a 17.8% increase in cross-border revenue and an 8% improvement in conversions.
Stripe is also introducing AI-powered tools to help fight fraud, such as Radar Assistant. Using natural language prompts, businesses can describe the new fraud rules they want to set, and the assistant will create them accordingly. The rules can then be tested against previous payments to see if they increase revenue and block fraud without increasing false positives.
Asian consumers expect cross-border commerce to improve their shopping experiences: according to new research from Stripe, 67% of Singapore consumers expect store location to be less important to their shopping decisions by 2030.
A more localized payment experience and expanded market coverage
At Stripe Tour Singapore, Stripe also announced expanded market coverage in South Korea, enabling US merchants to accept payments from Korean customers. The payments are made possible through a new partnership between Stripe and NICEPay, giving Korean buyers a fully localized payment experience while giving US businesses access to one of the most powerful e-commerce marketplaces in the world. The deal includes more than 20 card brands, four local wallets, and end-to-end payments and reporting, without the need for businesses to set up a legal entity in South Korea. Stripe also plans to expand local payment method coverage in Indonesia next year.
The expansion of market coverage in Asia follows Stripe's previously announced doubling of the number of global payment methods available through its Optimized Checkout Suite from 50 to more than 100.
Continued momentum in Asia
In 2023, Stripe saw a 28% year-over-year increase in the number of Asian businesses that processed more than $1 million in payments on the platform. Hundreds of businesses in the region use Stripe every day, more than double the rate in 2020. Many of them are focused on facilitating cross-border trade, including e-commerce platform Shoplazza.
“At Shoplazza, we're helping more than 500,000 merchants become cross-border e-commerce success stories on our platform. Our partnership with Stripe gives merchants fast and efficient access to reliable, secure, and diverse payment solutions to grow their businesses and accelerate their global expansion,” said Jeff Lee, CEO of Shoplazza.
Shoplazza is one of the companies that has benefited from Stripe's solutions. “InVideo is an AI-powered video generator that serves millions of users from 190 countries. Stripe has helped us optimize payment success rates across multiple currencies and payment methods, reduce costs, and prevent fraud. In just two months, we expanded into new markets like the US, UK, and Canada, saving us thousands of development hours and millions of dollars,” said Sanket Shah, CEO and co-founder at InVideo.
Stripe announced additional partnerships at Stripe Tour Singapore, including LG Electronics, which is launching an online branded store in Singapore and plans to partner with Stripe in more countries around the world; M1 Limited, a leading mobile network operator in Singapore, partnering with Stripe to enable new consumer experience channels; and regional ride-hailing app TADA, partnering with Stripe as it expands into more Southeast Asian markets.
