HeyGen reduces fraud and boosts auth rates by 21% with Stripe professional services

HeyGen is an AI-powered video creation platform that makes visual storytelling accessible to all audiences. With AI avatars, voices, backgrounds, and text-to-speech capabilities, HeyGen customers can create studio-quality videos in minutes. Since 2023, HeyGen has been using Stripe to power its platform’s billing and subscriptions with a seamless and secure checkout experience.

Products used

    Billing
    Checkout
    Link
    Radar
Global
Startup

Challenge

Since its launch in 2022, HeyGen has become the market leader in creating realistic avatars. The Los Angeles–based company has experienced exponential growth and now powers some of the largest enterprises, including HubSpot, Salesforce, and Accenture.

HeyGen’s business overlaps two highly competitive markets – AI and social media tools – where companies must be poised to bring new features to market quickly. From the start, HeyGen chose Stripe as its payments provider to support its rapid expansion and help it keep pace with changing market demands. In 2023, HeyGen expanded its use of Stripe, integrating Stripe Billing to manage subscriptions and enable quick rollout of new subscription offerings, and Stripe Radar for Fraud Teams to improve product monetisation while protecting itself from fraud.

In 2024, after its initial success with Stripe, HeyGen wanted to optimise its use of Stripe solutions. In particular, HeyGen faced a significant challenge with fraud prevention: with the nascent AI market in flux and HeyGen’s rapid growth over a short period, HeyGen lacked a stable baseline of expectations for typical customer behaviours and transaction patterns. With more explicit expectations, the company hoped to reduce disputes in order to stay away from card brand monitoring programmes. To protect its user experience and brand, HeyGen needed to enhance its fraud prevention system with real-time fraud monitoring for quicker reactions.

Alongside enhanced fraud protection, HeyGen wanted to improve its checkout flow for enterprise users, increase conversion by offering a broader range of payment methods, and streamline its product offerings for a more sustainable user experience for future growth.

Solution

HeyGen partnered with Stripe professional services to help the company optimise its Stripe implementation, improve fraud prevention, and increase conversion.

The Stripe professional services team focused on optimising HeyGen’s fraud rules with Stripe Radar for Fraud Teams. Additional optimisations have provided HeyGen with better signals, faster reactions to new attacks, real-time monitoring, and case management for strategic users. Stripe professional services also helped HeyGen access an alpha for Radar’s fraud insights, a new fraud-focused dashboard reporting experience. The partnership has helped HeyGen establish new expectations for monitoring customer behaviours and transaction patterns to support its fraud prevention practices as the company grows.

To improve the company’s checkout experience and increase conversion, HeyGen implemented Stripe’s Optimized Checkout Suite, which includes Stripe Checkout – an embeddable pre-built payment form. The company opted to implement Checkout to offer a broader range of payment methods, including wallets and bank transfers for enterprise users. Checkout also provided the advanced fraud detection tools built into Radar for Fraud Teams with better signals to more accurately detect fraud.

Paired with Stripe Billing, Checkout is optimised to drive conversion for HeyGen’s billing and subscriptions. The company also enabled Link, Stripe’s accelerated checkout solution that securely saves and auto-fills the subscriber’s address and payment details for a simpler, quicker transaction. The Stripe professional services team designed a clear and detailed integration plan for the Optimized Checkout Suite that includes individual API calls and allows HeyGen to make decisions that balance conversion, churn, and fraud prevention.

To refine the checkout experience for future growth, HeyGen simplified its offerings. Using Stripe’s Billing migration toolkit for a Stripe-to-Stripe migration of product subscriptions, HeyGen consolidated the product offerings without interruption of subscribers or payments. Stripe’s Billing migration toolkit is a no-code migration solution that helps users migrate faster, with fewer resources and a lower risk of error.

Results

Fraud drops by 69%, and disputes drop by 57% with Radar for Fraud Teams optimisations

Due to the improved Radar rules and optimisations to HeyGen’s Radar for Fraud Teams integration, the company saw its fraud rate drop by 69% and the total dispute rate drop by 57%. Both dispute and fraud rates are well below card monitoring programme limits, enabling HeyGen to experiment with go-to-market initiatives while the company’s revenue continues to grow significantly.

Stripe’s Optimized Checkout Suite improves customer experience and prepares HeyGen for future expansion

Implementing Stripe’s Optimized Checkout Suite gave HeyGen a more streamlined checkout experience, allowing users to update subscriptions and product usage directly through Stripe’s customer portal. Using dynamic payment methods, HeyGen was able to add new payment methods quickly and easily from the Stripe Dashboard, without any additional coding or development time. These improvements have increased HeyGen’s subscriber lifetime value by 15% and payments success rate by 21%.

Simplifying offerings improves brand experience

In addition to real-time monitoring, insights, and case management, simplifying HeyGen’s offerings has enabled the company to strengthen its product perception and deliver a better customer experience for its subscribers. At the same time, unifying its processes and operations has helped HeyGen refocus its efforts on its core product and mission.

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