Shopify

Shopify merchants are voicing frustration over the company’s AI-powered customer service, saying it’s become nearly impossible to reach a human for help. The Logic reports merchants facing repeated chatbot loops despite paying for 24/7 support. Former Shopify employees said layoffs and outsourcing have eroded service quality since 2022, with hundreds of support roles eliminated.

CEO Tobi Lütke has promoted AI as a driver of efficiency, but merchants claim automation has replaced accountability. Shopify maintains that its human agents use AI to “get merchants unstuck faster.” The company’s revenue grew 26 percent in 2024 despite reduced staff.

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Shopify posted $2.68B USD in quarterly revenue, up 31% year-over-year, surpassing analyst expectations. Net income hit $906M USD, rebounding from a $682M loss in Q1, while gross profit rose to $1.3B. Gross merchandise volume reached $87.8B, up 16% with strength in North America, Europe, and Asia Pacific.

Operating income grew 19% to $291M, and free cash flow margin remained double-digit for the eighth consecutive quarter. Shares closed at $127 USD on Nasdaq. Shopify also introduced AI-driven developer tools to enable shopping directly within conversational agents, reflecting the company’s continued push toward AI-powered e-commerce.

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At Toronto Tech Week’s Homecoming panel, Shopify CEO Tobi Lütke and Social Capital’s Chamath Palihapitiya discussed artificial intelligence’s promise and pitfalls. Lütke warned companies against clinging to tools instead of focusing on core problems. “Fall in love with problems,” he said, urging flexible thinking in AI use.

Palihapitiya called AI “transformational,” capable of rebuilding society, but downplayed “vibe coding” as ineffective. Both stressed infrastructure challenges ahead, from energy to silicon. Lütke rejected claims that STEM degrees were devalued by AI, labeling it a “dangerous narrative.” The panel, hosted by Satish Kanwar, offered both optimism and caution for AI’s next frontier.

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Shopify will now allow merchants to accept USDC, a leading stablecoin, through partnerships with Coinbase and Stripe. CEO Tobi Lütke announced the update at Coinbase’s conference in New York, highlighting USDC’s growing role in digital commerce.

The feature, built on Coinbase’s Base network and integrated into Shop Pay and Shopify Payments, ensures merchants can receive local currency with no FX fees. Early access has begun, with a broader rollout planned. Stablecoins like USDC, designed for low volatility, are gaining traction in global payments. Shopify’s move reflects its continued embrace of crypto and decentralized finance in e-commerce.

Want to know more? Check out the source code on Fintech.ca.

Shopify has shuttered its equity-focused programs, ending initiatives that supported Black, Indigenous, and women entrepreneurs. Internal discord began after executive Kaz Nejatian pledged to restore a Sir John A. Macdonald statue, sparking debate over the company’s commitment to inclusion.

Former staff allege that diversity was used as marketing, not mission. Programs like Build Native and Build Black, once heralded, were quietly cut in 2025. Executives now frame DEI work as “virtue signalling.” Staff say the closures came abruptly, erasing support for merchants who brought in real revenue. For some, it marked a cultural turning point—and a political one.

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Shopify is ending its annual $1 million USD revenue-sharing exemption for app developers, introduced during the pandemic to aid small businesses. Going forward, the exemption will apply only to a developer’s first $1 million USD in lifetime revenue. The 15% share remains on earnings above that.

While Shopify says the change ensures fairness, critics argue it penalizes successful developers and hurts morale. Developers took to social media to question the policy’s timing and intent. Shopify stated the funds will support tools and infrastructure for all partners. Earnings before Jan. 1, 2025, will not count toward the new threshold.

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Former Shopify CMO Craig Miller revealed that Prime Minister Mark Carney was offered the role of President at Shopify in 2020. Miller said Carney was “genuine, thoughtful, and wicked smart,” but ultimately chose Brookfield Asset Management to focus on climate and investing. The position later went to Harley Finkelstein.

Carney’s tech ties also include a board role at Stripe. As Canada votes, Shopify’s leadership has grown more politically vocal—CEO Tobi Lütke endorsed Carney’s character but criticized the Liberal platform. COO Kaz Nejatian publicly supported Pierre Poilievre.

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Toronto-based fintech Wealthsimple has acquired the team behind San Francisco wealth platform Plenty. Co-founders Emily Luk and Channing Allen will join Wealthsimple’s product and engineering teams, respectively, along with three software developers. Founded in 2021, Plenty helped couples manage finances, including tools for budgeting, joint accounts, and even breakups.

The startup, backed by Inovia Capital, raised nearly $11M CAD and will shut down May 10. Wealthsimple says the team’s experience will enhance its offerings for families and couples. Luk previously held leadership roles at Stripe and Even, while Allen served as technical lead at Even.

Want to know more? Check out the source code on Betakit.