PayPal Invests $18 Million in AI-focused Crypto Startup Kite, Aiming to Advance Autonomous Payment Technologies

In a significant move towards the future of digital payments, PayPal has invested in Kite, a startup that's bringing together cryptocurrency and AI to revolutionise agent-to-agent transactions.

Kite, founded by experts from Databricks, Uber, and Salesforce, has introduced a platform called Kite AIR. This innovative solution combines Agent Passport and Agent App Store, enabling AI agents to authenticate, make payments, and follow programmable rules.

Agent Passport creates a verifiable identity for these AI agents, while the Agent App Store allows services to be purchased using stablecoins. This combination, according to PayPal executive Steve Everett, unlocks new ways to support automated commerce.

Everett, who is also a board member at Kite, described the approach as a path toward global, programmable payments with real-time auditing and atomic settlement. He believes that Kite's infrastructure, when coupled with stablecoins, offers a solution to the challenges faced in current agent-to-agent payment systems.

PayPal Ventures, along with General Catalyst, led Kite's $18M Series A funding round. The funding round also drew participation from several other investors, including 8VC, Samsung Next, Vertex Ventures, SBI US Gateway Fund, Avalanche Foundation, GSR Markets, LayerZero, Animoca Brands, Hashed, HashKey Capital, Dispersion Capital, Alchemy, and Essence VC.

The Kite AIR platform allows for low-cost, instant settlement using stablecoins while removing chargeback risks. Transactions on Kite AIR settle on-chain, offering full traceability and real-time monitoring.

General Catalyst's Marc Bhargava stated that Kite is building the rails for the machine-to-machine economy, with the ability to process payments at scale being key to future adoption. He believes that Kite is solving a major issue in agent-to-agent payments, as existing methods like virtual cards can't handle micro-transactions at machine speed.

The Kite AIR platform is attracting global attention, positioning itself as a solution for agent-to-agent payments. Merchants on Shopify and PayPal can opt into the Kite AIR platform, becoming discoverable to AI agents who can interact and pay on their behalf.

The involvement of PayPal in Kite signals growing interest from traditional finance in AI-driven crypto commerce. With Kite's total funding now reaching $33M, it's clear that the startup is well-positioned to become a key player in this exciting new landscape.

As Kite continues to develop, it's clear that the future of digital payments is being shaped by the intersection of AI and cryptocurrency. With the support of industry giants like PayPal, Kite is poised to play a significant role in this transformation.

PayPal Invests $18 Million in AI-focused Crypto Startup Kite, Aiming to Advance Autonomous Payment Technologies