The Dodo Digest: LOCK IN!, While you were sleeping, commerce moved to AI

Hello there!

We at Dodo Payments locked in - did you? 💪

2026 started with us hitting the ground running, and honestly, we haven't stopped. While the world was still shaking off the holiday vibes, our team was already deep in build mode. 

You know that moment while playing your favourite sport, when everything else fades away and it's just you, the game, and pure execution? That's been our January.

But here's the thing - when you're this locked in, good things happen. This week brought some massive news from Shopify that had us nodding along thinking "yep, this is exactly where commerce is heading." Their Universal Commerce Protocol announcement? It's a game-changer, and it aligns perfectly with what we've been building.

So grab your coffee (or Diet Coke - whatever keeps you locked in XD), because we've got some exciting updates to share about what this all means for you and the future of payments.

🛍️ Shopify's Bet on Agentic Commerce

On January 11th, Shopify announced they're enabling native commerce across all major AI channels - ChatGPT, Google AI Mode, Gemini app, and Microsoft Copilot. The vision? Every conversational interface becomes a place to discover and buy.

The Universal Commerce Protocol

Co-developed with Google and endorsed by 20+ retailers, UCP is an open standard for AI agents to transact with any merchant. It handles:

• Discount codes, loyalty credentials, subscription billing

• Complex checkout flows (delivery dates, terms acceptance)

• Works with any payment processor, including Shopify Payments

What This Means

Shoppers can now buy directly inside AI conversations. Brands like Monos, Gymshark, and Everlane are selling in Google Search and Gemini. Keen, Pura Vida, and Kyte Baby are using Microsoft's Copilot Checkout.

Shopify also launched their Agentic plan, opening their catalog to non-Shopify merchants. Any brand can now list products and sell through AI channels using Shopify's infrastructure.

Why This Matters for Billing

Agentic commerce isn't just about where you sell, it's about how seamlessly you handle the entire transaction. When buyers can purchase in seconds from an AI chat, your billing and payment infrastructure needs to be just as frictionless. That's exactly what we've been focused on at Dodo Payments.

💡 Dodo Payments: Built for This Future

While Shopify handles discovery and checkout, Dodo Payments ensures your billing works everywhere—from AI agents to embedded checkouts to traditional stores. Here's what we shipped recently to make that possible.

1.Inline Checkout (BETA) - December 24

Embed checkout directly into your website for a fully branded payment experience.

• Fully integrated: Blends seamlessly with your site design

• Real-time sync: Build custom order summaries that update live

• PCI compliant: We handle all sensitive payment data

2. Saved Payment Methods

Use existing payment methods for instant checkouts—perfect for AI-driven purchases where speed matters.

• One-click purchases for returning customers

• Seamless subscription creation with saved cards

• Reduced friction = higher conversion

3. 30+ Payment Methods

We support local payment preferences globally:

• Cards, Apple Pay, Google Pay, Cash App Pay

• BNPL: Klarna, Afterpay, Affirm

• Local: UPI, iDEAL, Bancontact, EPS, and more

• 80+ currencies, 220+ countries

Minimal Address Support

For digital products, we now support minimal address collection - just what you need for tax compliance, nothing more. Faster checkout, fewer abandoned carts.

🎯 The Bigger Picture

UCP’s vision is about meeting buyers where they are in AI chats, search results, and assistant interfaces. For this to work, the entire payment stack needs to be:

1. Agentic - embedded in multimodal AI infrastructure 

2. Global - supporting worldwide transactions with region-specific payment options

3. Compliant - card networks, local regulations and sales tax 

Dodo Payments addresses these needs precisely - 220+ countries, 80+ currencies and a Merchant off Record

Ready to Build?

Get started at dodopayments.com
Explore updates at docs.dodopayments.com/changelog

As commerce moves into AI conversations, the infrastructure underneath needs to be invisible, reliable, and global. That's what we're building and we're just getting started.

Also, join our loving Discord community : discord.com/invite/dodo-payments-1305511580854779984

Best,
Rishabh Goel
Co-Founder,
Dodo Payments