AI and Blockchain Power Payment Startups

The payments industry is undergoing a significant transformation, driven by emerging technologies such as artificial intelligence (AI), blockchain, and stablecoins. A new wave of fintech startups is at the forefront of this change, offering innovative solutions that are reshaping how banks and financial institutions operate.

According to Crunchbase, there are over 8,600 fintech startups and nearly 2,400 payments startups in various stages of development. These companies have collectively raised about $257 billion and $96 billion, respectively. For banks, these startups not only provide cutting-edge services but also become potential acquisition targets as they mature. A prime example is Stripe's recent acquisition of stablecoin payments platform Bridge.

Fueling the Fraud Fight

Company: Darwinium

**Founders:** Alisdair Faulkner, Ananth Gundabattula, Ben Davey, Caleb Moore, and Colin Goldie

**HQ:** San Francisco, with operations in Australia and the U.K.

**Website:** [www.darwinium.com](http://www.darwinium.com)

**Year Founded:** March 2021

**Use Case for Banks:** Darwinium is a fraud prevention platform that integrates automated fraud detection with traditional fraud prevention capabilities. The platform provides full visibility and control of every digital interaction with the bank, across the web, apps, and APIs, to separate good and bad behavior in real time.

**Funding:** $28 million in venture capital

**Biggest Investors:** U.S. Venture Partners, Blackbird, Airtree, Accomplice, and Naval Ravikant

**Customers:** Multiple global companies across industries, including neobanks, fintechs, marketplaces, and gaming companies

**Major Milestones:** The company recently announced its expansion into the U.S., with a bolstered U.S.-based leadership team and the relocation of its corporate headquarters to San Francisco.

**Growth Plans:** CEO Alisdair Faulkner told American Banker that revenue this year will grow five times from 2024, as the company continues to build out U.S. operations.

Agentic AI Draws New Entrepreneurs

Company: Skyfire

**Founders:** Amir Sarhangi and Craig DeWitt

**HQ:** San Francisco

**Website:** [skyfire.xyz](https://skyfire.xyz)

**Year Founded:** 2022

**Use Case for Banks:** Skyfire is a payments and identity platform that empowers AI to process payments, verify identities, and access essential services without human intervention.

**Funding:** $9.5 million in seed capital

**Investors:** Coinbase Ventures, a16z CSX, Neuberger Berman, Brevan Howard Digital, Intersection Growth Partners, DRW, Inception Capital, Arrington Capital, Red Beard Ventures, Sfermion, Circle, FBG, Gemini, Crossbeam Venture Partners, Everyrealm, Draper Associates, Arca, and Ripple

**Customers:** Primarily agent developers and agent platforms, including some banks

**Major Milestones:** Launched the platform in August 2024, with over 10,000 developers transacting with agents using Skyfire.

**Growth Plans:** The company plans to roll out an updated version of the platform that is more scalable and flexible. It also aims to recruit and sign additional partnerships with financial institutions and internet infrastructure providers.

Stablecoins Gain Traction

Stablecoins are becoming increasingly important for banks as Congress weighs the passage of a bill that would set up a regulatory regime for payment stablecoins. Major retailers like Walmart and Amazon are also considering issuing their own stablecoins in the U.S. as a payment alternative.

The Future of Payments

These emerging fintech startups are not just innovators; they are the future of the payments industry. By leveraging AI, blockchain, and stablecoins, they are addressing critical issues such as fraud prevention, identity verification, and seamless transactions. As these technologies mature, they will continue to drive the evolution of the financial landscape, making payments faster, safer, and more accessible.

Banks and financial institutions should keep a close eye on these startups, as they represent both potential partners and future competitors in the rapidly changing world of payments.