In late 2025 alone, Visa handled about $4.5 trillion in payment volume while Mastercard processed around $2.8 trillion in the final quarter, showing the scale at which both systems operate behind everyday purchases.

Most people do not think about it, and I don’t either when I tap a card or pay online. The transaction is easy and instant, but there is a whole process behind that simplicity, a system controlled by two companies that do not compete in the way consumers imagine.

We are not focusing on credit cards this time,  the story is about infrastructure.

Not Banks, Not Lenders: What They Actually Are

Visa and Mastercard are usually misunderstood as banks but they are not.

They do not issue cards, set interest rates, or decide your rewards. Instead, they operate as payment networks, connecting banks, merchants, and payment processors so money can move securely between them.

When a card is used, the network routes the transaction. Approval, rejection, fraud checks, and settlement all pass through systems built by these companies, but the money itself is held and issued by banks.

The separation explains why two Visa cards can be completely different depending on the bank behind them.

How a Single Card Payment Moves

A simple purchase hides a long chain.

A customer pays at a shop or online, the request goes through a payment processor, and then passes through either Visa or Mastercard’s network. The issuing bank checks the account, approves or rejects the transaction, and the confirmation travels back through the same route.

Only then does money begin moving between banks.

The entire process happens in seconds, but it depends on a global system built over decades.

A Duopoly Built on Scale, Not Visibility

Visa and Mastercard are at the top in their space because of one thing, and that’s scale.

Together, they operate across hundreds of countries and are accepted at tens of millions of merchant locations worldwide. Their reach creates a network effect, the more banks and merchants join, the harder it becomes for alternatives to survive.

Visa currently processes more total transactions, while Mastercard has shown slightly faster growth in some recent periods. But the gap is not about consumer experience but infrastructure size and adoption speed.

This is why analysts usually describe them as a duopoly.

Differences That Are Not Obvious

To most users, Visa and Mastercard are identical and that is largely true at checkout. But there are differences in other aspects.

Visa has historically held a slightly higher global transaction share, while Mastercard has been more aggressive in real-time payments and international expansion partnerships.

Both companies earn money mainly through transaction processing fees charged to banks and financial institutions, not directly from consumers.

Both also compete in security technology, including fraud detection, tokenisation, and identity verification systems. The focus is not on consumer branding but on infrastructure upgrades.

Even their acceptance levels are now extremely close, with both operating in well over 200 countries and territories.

The Competition Happens Behind Banks

What is usually missed is where the competition actually happens.

Visa and Mastercard do not compete in front of consumers. They compete for:

• Bank partnerships
• Merchant adoption
• Processing contracts
• Security infrastructure deals
• Cross-border transaction flows

These are invisible to users but essential to revenue growth.

Recent financial data shows both companies still rely heavily on high digital payments and cross-border spending, which is a key driver of fees.

Fees, Power and the Debate Around Cost

Every time a card is used, merchants pay a fee which is split across processors, banks, and networks.

These charges are usually between 2% and 2.5% per transaction in some markets, although exact levels vary. Recent negotiations and legal cases have pushed both companies toward possible adjustments in fee structures in certain regions.

This has created stress between merchants and networks, but the system is largely unchanged because of how deeply embedded it is in global commerce.

A System Still Expanding Despite Challenges

Despite competition from mobile wallets, fintech apps, and emerging payment rails, Visa and Mastercard are growing and expanding.

Recent earnings trends show double-digit revenue growth supported by high transaction volumes and digital spending. Cross-border payments, especially travel and e-commerce, are a strong driver for both networks.

At the same time, regulators in different regions have increased focus on fees and market authority, showing that the system is powerful but not unchecked.

Why the Difference Seems Invisible

For most people, there is no winner between Visa and Mastercard because there is no obvious difference in daily use, and that is the point.

The competition is not about the card in your hand but which company covers the system behind global payments more efficiently, more widely, and more securely.

You do not choose the network most of the time, your bank does. And that is why the difference between Visa and Mastercard usually seems almost invisible.

The round was co-led by Flourish Ventures and 1kx, with backing from White Star Capital and Fabric Ventures. With this, the company’s total funding now stands at $9.2 million.

Kulipa builds payment infrastructure that allows fintech companies to issue cards funded directly from stablecoin balances. These cards can be used anywhere card networks are accepted, including for everyday purchases and ATM withdrawals.

Stablecoins already handle more than $300 billion in daily settlements, but their use in everyday payments is still limited. The systems that connect blockchain-based transactions to traditional card networks are still fragmented and usually require large upfront capital.

Kulipa says its platform removes some of these limitations. It verifies balances and settles transactions onchain, reducing the need for prefunding.

At the same time, it takes on fraud liability for issued cards, which lowers operational pressure for its partners.

“Stablecoins have proven their value as a settlement layer, but using them in everyday financial products is still early,” said Axel Cateland, Founder and CEO of Kulipa.

“Card issuance is the bridge between onchain balances and real-world payments. We built Kulipa to give regulated fintech platforms the compliant, capital-efficient infrastructure they need to operate at global scale.”

The company operates what it describes as a local-first model, with regulatory coverage across the European Union, Argentina and Nigeria. It is also working on expansion into the United States through BIN sponsorship.

Kulipa launched its infrastructure in February 2025 and since then, it has issued more than 120,000 cards and signed 20 customers. These include Flutterwave, Solflare, nSave and Ready.

The company also reports a 70% month-on-month increase in transaction volume.

“At Flutterwave, we’re focused on building payment infrastructure that works across markets at scale. As stablecoins become a more practical settlement option, it’s important that businesses can turn those balances into real-world spending,” said Olugbenga Agboola, Founder & CEO of Flutterwave.

“Partnering with Kulipa allows us to extend stablecoin value into globally accepted payments in a compliant, scalable way.”

“Kulipa has enabled Ready to become an onchain alternative to banks,” said Itamar Lesuisse, CEO of Ready. “With their infrastructure, we can issue globally accepted cards directly from stablecoin balances, giving our users seamless access to everyday spending in a compliant and scalable way.”

Kulipa was founded in 2023 by a team with experience across payments, compliance and technology. Cateland previously worked on Apple Pay and Google Pay deployments at Mastercard.

Co-founder and CTO Michael Shynar has worked at WhatsApp and Google, while Head of Compliance Benoit Roger brings experience from Binance and Nickel Bank.

Investors say the company is addressing a key gap in the market.

“We’re seeing stablecoins moving beyond cross-border settlement and becoming part of real financial infrastructure,” said Ameya Upadhyay, General Partner, Flourish Ventures.

“The missing piece has been compliant, scalable card issuance. Kulipa fills that gap by combining capital efficiency with multi-region regulatory coverage, enabling fintech platforms to bring stablecoin settlement into everyday payments.”

1kx Founding Partner Christopher Heymann added, “Stablecoins are reshaping how money moves globally, but for mainstream adoption, people need to spend them as easily as they spend fiat. 

“Kulipa meets users where they already are, starting with the card in their wallet, and gives businesses a turnkey way to offer that experience. We believe this payments layer is critical infrastructure for the next phase of crypto adoption.”

Kulipa says it will use the new funding to strengthen its infrastructure and support more fintech platforms looking to offer stablecoin-based payments at scale.

Per Bloomberg, discussions are still at an early stage and there is no certainty a deal will happen. Both companies declined to comment.

Shortly after, PayPal shares rose 6.7% to $47.02 in New York on Tuesday. That gives the company a market value of about $43.3 billion.

Stripe, which is still privately held, recently confirmed a $159 billion valuation in an employee tender offer. The company was founded by brothers Patrick Collison and John Collison. It has grown into one of the most valuable financial technology firms in the world.

Speaking this week, Patrick Collison said: “PayPal has had, obviously, a tough time over the past few years and the landscape has changed quite a bit with Apple Pay and Google Pay and everything like that. I can’t talk about any, you know, M&A hypotheticals but they’ve definitely had a tough time.”

PayPal was founded in the late 1990s and helped build early online payments. In recent years, however, it has faced slower growth.

Digital wallets such as Apple Inc.’s Apple Pay and Alphabet Inc.’s Google Pay have taken market share. The company’s fourth-quarter revenue and profit fell short of analysts’ estimates. Payment volumes have also slowed.

At the same time, PayPal is changing its leadership. Enrique Lores will become president and chief executive on March 1, replacing Alex Chriss, who was removed earlier this month. David Dorman has been appointed board chair.

Stripe, meanwhile, has continued to expand. The company processed $1.9 trillion in payment volume in 2025. It has also secured a US national bank trust charter for its stablecoin subsidiary, Bridge, showing plans to strengthen its role in regulated digital payments.

If the acquisition of PayPal by Stripe proceeds, the transaction could rank among the largest deals in the financial technology sector.

The New York- and Quito-based company says its software has already handled more than $100 million in real financial operations, including payments, account openings and credit decisions, all completed inside chat conversations. 

The new capital will be used to expand Brain, its core platform, and strengthen its expansion into the US small business market.

Messages have replaced calls and emails, but money still moves elsewhere. Customers are usually pushed into apps, forms or call centres at the most critical point. That break costs time, trust and revenue. 

Jelou’s system is built to remove that break.

The Series A round was led by Wellington Access Ventures, with backing from Krealo, the venture arm of Credicorp, and Collide Capital. 

With this raise, Jelou’s total funding now stands at $13 million, following an earlier seed round supported by Act One Ventures and Arca Continental Ventures.

Rather than acting as a help desk, Brain is designed to carry out tasks. Businesses can use it to collect missing customer details, confirm identities, trigger payments and move financial processes forward without leaving WhatsApp. 

It links directly to a company’s existing systems and runs at scale, while allowing human teams to monitor and step in when needed.

“When customers are most ready to act, things usually fall apart,” said Luis Loaiza, chief executive and founder of Jelou. “They get redirected out of the conversation, put on hold, or asked to repeat themselves across systems. 

“We built Brain so businesses can meet customers where they already are and complete the entire operation securely inside chat. This round allows us to scale that model across the Americas and push conversational AI beyond talk into execution.”

Jelou started in Ecuador in 2017, impacted by an observation. People were already buying, selling and asking questions through messaging apps, but the actual transactions were still scattered across insecure and outdated channels. 

Loaiza and his team, drawing on years of work in encrypted communications, set out to make chat a place where serious business could be completed, not just discussed.

That approach has gained traction. The company now works with more than 500 businesses across 13 countries, including banks, retailers and consumer goods firms. 

Operating in Latin America forced Jelou to build with regulation, security and scale in mind from the start, a discipline that now underpins its US expansion.

Investors see the timing as favourable because businesses are working to reduce expenses and close sales faster, while customers expect everything to happen in one place, without friction.

“Jelou recognises that the future of AI is centered around communication channels embedded within the everyday workflow,” said Jackson Cummings, head of Wellington Access Ventures. 

“They are developing a platform that integrates voice AI, chat AI, payments, and identity into a single application layer. This strategic approach positions Jelou as an early mover in bringing transactional AI to messaging in Latin America.”

Jelou plans to turn Brain into a bigger operating layer for conversational business, allowing companies to build and run full WhatsApp-based services from a single interface. 

The company wants to change the norm, where businesses have to happen on websites or apps. Now it’s bringing it inside the conversations people already trust.

The round was led by Humanity Investments, with backing from Animoca Brands, Hex Trust, Three Point Capital and Jamie Rogozinski, the founder of WallStreetBets. 

The funding gives the company the needed capital to push a platform it says is designed to reduce fragmentation and limit bot-driven abuse in retail trading.

The company is targeting a pain point where many traders now operate across several platforms, juggling multiple balances, different regulations and clouded pricing mechanics. 

Everything is betting that a single account and balance, usable across Telegram, mobile and web, will appeal to users tired of that complexity.

An interesting feature is the integration of Humanity’s human verification system. The aim is focused on one person, one account. By tying participation and rewards to verified individuals rather than account numbers, the platform says it can curb fake accounts, automated trading abuse and reward farming.

Tim Tsai, chief executive of Everything, said: “The problem isn’t that traders lack options. It’s that existing options are fragmented, opaque, and dominated by bots.” He added, “We’re building for retail traders who want simplicity, transparency, and fairness. One account. One balance. One set of clear rules. Everything is that venue, and Humanity’s verification ensures it stays fair as we scale.”

The company plans to offer access to crypto, stocks and commodities, with leverage of up to 1000 times. That level of leverage will raise eyebrows in some quarters, but Everything argues that clearer regulations and identity checks can help manage abuse while keeping markets open to smaller traders.

Terence Kwok, Humanity’s founder and chief executive, said the partnership is meant to blend community participation with institutional safeguards. “We’re pairing the most authentic voice in retail trading with the leading regulated financial institution in Asia, Hex Trust, and Humanity’s Proof-of-Trust network to guarantee one-person-one-account integrity. 

“Together, we’re building an exchange where the community drives the rules, institutions provide security, and bots have nowhere to hide,” he said.

The rollout will be gradual, with the first phase expected to be a Telegram mini-app focused on quick onboarding. Mobile, desktop and web versions will follow, alongside additional features outlined in the company’s litepaper.

Everything was founded by former executives from KuCoin, Alibaba and Tencent. Humanity, which provides the verification layer, was built as a trust framework that allows users to prove facts about themselves without exposing private data. Its token is already trading on major exchanges.

Everything’s model will test whether retail traders are ready to trade across markets in one place, under one identity, with fewer hidden regulations.

The transaction ties Africa’s largest payments company to the country’s most widely used open banking platform at a time when regulation, scale and survival are changing the fintech sector. 

People familiar with the deal say Mono’s investors will at least recover their capital, while some early backers walk away with returns of up to 20 times. Mono will continue to run as a standalone product.

Mono was founded in 2020 to solve a basic problem most African fintechs face, which is that banks do not easily share data. Through its APIs, customers can give consent for businesses to access bank information, verify accounts, analyse income and spending, and trigger payments. 

In a market where credit bureaus are thin and formal credit history is rare, transaction data has become the backbone of digital lending.

That model worked. Mono raised about $17.5 million from investors including Tiger Global, General Catalyst and Target Global. Its chief executive, Abdulhamid Hassan, says almost every digital lender in Nigeria now depends on Mono’s pipes. 

The company says it has enabled more than eight million bank account connections, reaching roughly 12% of Nigeria’s banked population, and has delivered around 100 billion data points to lenders. Its client list includes Visa-backed Moniepoint and GIC-backed PalmPay.

For Flutterwave, the logic is different but just as direct. The company already handles local and cross-border payments across more than 30 African countries. 

In March 2025, it raised $250 million in a Series D round that valued it at $3 billion, cementing its position as Africa’s most valuable startup. It also processed $31 billion in transactions in 2024. Payments alone, however, are no longer enough.

By acquiring Mono, Flutterwave moves deeper into onboarding, identity checks, bank verification, data-led risk assessment, and one-off or recurring bank payments, all within a single stack. This is more important now because Nigeria, its biggest market, has finally switched on open banking.

In August 2025, the Central Bank of Nigeria approved the country’s open banking framework, making Nigeria the first African nation to formally operationalise it. Banks are now required to share customer data through standardised APIs, as long as users give consent. That turns what Mono has been building quietly for years into regulated national infrastructure.

Flutterwave’s chief executive, Olugbenga ‘GB’ Agboola, describes the deal as a long-term play on how African finance will work. “Payments, data, and trust cannot exist in silos,” he said. “Open banking provides the connective tissue, and Mono has built critical infrastructure in this space.”

Hassan agrees that the timing is important. He argues that Africa is moving into a phase where credit, not just payments, will drive financial inclusion. But credit only works if lenders truly understand how people earn and spend, and if regulators trust the systems handling that data.

“If the economy is going to be credit-driven, you need deep data intelligence to know how people earn and spend,” Hassan said. “But at the same time, for open banking to really work, regulators need to be confident that customer funds are safe.”

That confidence is still forming. Open banking regulations across Africa are still uneven, and adoption will not happen overnight. 

However, joining Flutterwave gives Mono reach it could not easily build on its own. Flutterwave already operates with licences, compliance teams and enterprise customers across dozens of markets. When regulatory barriers fall, Mono’s tools can scale faster without rebuilding that groundwork country by country.

“This allows us to expand what’s possible for businesses operating across African markets while staying grounded in security, compliance, and local relevance,” Agboola said.

The deal also aligns with a change in African fintech. For years, startups chased the dream of becoming standalone giants. Funding was cheap, growth was rewarded, and consolidation was rare. That world has shifted. Capital is tighter. Regulation is heavier. Scale now matters more than ambition.

In South Africa, Lesaka Technologies bought payments firm Adumo for $96 million in 2024, pulling two major players into one platform. Analysts see Flutterwave and Mono following the same strategy, integration instead of isolation. Globally, the logic is familiar. 

Visa’s attempted $5.3 billion acquisition of Plaid in 2020, though blocked by US regulators, showed how valuable it can be to combine payment rails with data infrastructure.

Mono’s own journey reveals how competitive the space once was. When it launched, it faced companies like Okra and Stitch. Okra shut down in 2025. Stitch pivoted deeper into payments and raised more capital, changing its focus. That left Mono as the clear leader in Nigerian open banking APIs.

Hassan insists Mono was not pushed into a sale. According to PitchBook, the company raised $15 million in a Series A round in 2021 at a $50 million post-money valuation. 

He says Mono is well aligned to reach profitability this year and still has cash in the bank. Raising another round, he adds, would have meant fresh valuation pressure in a tough market.

There is also a shared history. Both companies are backed by Tiger Global, which led Flutterwave’s Series C and Mono’s Series A. Hassan says Tiger did not broker the deal. Instead, it grew from years of collaboration, with Flutterwave and Mono already working together on bank payment products long before acquisition talks began.

African fintech is entering a more mature phase. Infrastructure is consolidating and regulation is meeting up. 

The new hub, located at 21 Ahmed Onibudo Street, brings more than 25 staff onshore. It will oversee customer support, drive product development targeting West African markets, and enhance collaboration with banks, payment service providers, and regulators.

Verto said the decision to open in Lagos follows growing demand from businesses seeking an on-the-ground partner rather than a fully remote platform.

Over the years, Verto “has supported over 5,000 Nigerian and African businesses” and “processes more than $25 billion USD in annual global transactions today across 200+ countries and 49 currencies.”

How Verto Wants to Transform Global Payments for Fintechs, Online Marketplaces

Co-founder and Chief Executive Officer, Ola Oyetayo, noted the scale of the business, saying, “We do about $3 billion a month in transaction volume, you know. So it’s a lot of volume, 49 currencies.”

Country Director for Verto Nigeria, Austin Okpagu, described the launch as a long-term commitment to the Nigerian market.

“As Africa’s largest and most innovative fintech hub, Nigeria offers a dynamic environment for digital trade, entrepreneurship, and financial innovation, making it the natural anchor for Verto’s West African operations. 

“This hub allows us to respond faster to client needs, craft solutions tailored to local markets, and work even more closely with regulators and financial partners across the region.”

Oyetayo traced Verto’s beginnings to his years in the United Kingdom, where he began informally matching Nigerians abroad who wanted to invest at home with those in Nigeria who needed to pay for goods and services overseas.

“That’s really how Verto started, on WhatsApp, people would come to me saying, ‘I need $10,000,’ and I’d find someone who needed naira. I matched both of them together,” he said.

That origin story revealed why physical presence is now important. For several years, Verto deliberately maintained a low profile in Nigeria, preferring to prove its model first while navigating changing financial regulations. 

However, customers increasingly wanted local access, a physical office where they could resolve issues, speed up onboarding, and interact with a responsible team, especially amid Nigeria’s volatile FX cycles.

Local partners also backed the decision, as the CEO from Paga described the working relationship as creative and solution-driven:

“We’ve been able to call on you guys and say, here’s what we’re thinking about. Can we think about it together? And they’ve been very creative about how to resolve.”

A technology customer added that Verto’s pricing structure and reliability had simplified operations:

“Within a month, at least, making transactions and payments to suppliers all around the world… I like the fact that I don’t have to haggle. The price is the price. Could it be better? Can always be better, right? But it makes it so much easier for my team to validate their pricing, knowing that there’s one place they get the pricing and they plug it in, and it makes our workflow a lot more.”

At the launch of the new Verto Lagos office, the company outlined three operational priorities for its Lagos team: stronger customer relationships, tailored product development (including the rollout of Verto Atlas), and enhanced naira liquidity through deeper partnerships with local banks and payment processors.

The CEO stressed that the office represents a sustained investment, not a publicity move. He also emphasised the importance of trust and compliance, noting that the company values reliability over short-term pricing gains.

The event, featuring live product demos, customer testimonials, and open discussions about collaboration, brought together long-time customers, banking partners, regulators, and fintech stakeholders.

Verto said the Lagos team will focus on improving onboarding times, expanding collection and payout solutions, and optimising account services in the coming months.

The new office is a focus from a purely digital, global fintech model to a hybrid approach, platform scale supported by local expertise. In Nigeria, where trust and physical presence are essential to business relationships, that transition could prove decisive.

The new Verto Lagos office is located at 21 Ahmed Onibudo Street, Victoria Island. The company operates globally with offices in London, Cape Town, Nairobi, Pune, Dubai, New York, and Malta, and supports over 49 currencies across multiple African and international markets.

The collaboration allows Payful’s merchants to collect payments locally and settle globally, powered by Flutterwave’s multi-currency and compliant infrastructure.

According to Flutterwave’s Founder and CEO, Olugbenga Agboola, “When the time came for Payful, a leading global trade company to expand its reach into Africa, there was no better partner to power that growth than Flutterwave.”

“Through our Virtual Account solution and multi-currency platform, we enabled Payful to collect payments locally, settle globally, and scale seamlessly, all within one secure and compliant infrastructure.”

The deal makes Flutterwave the backbone for Payful’s African expansion, providing localised payment collection through virtual accounts and enabling faster, cheaper settlements for merchants trading across borders. 

The integration also removes the need for Payful to encounter multiple banking systems and regulatory requirements in each country.

Africa’s payment sector is fragmented, with issues such as high transaction costs, currency fluctuations, and regulatory complexity. 

Payful faced these challenges while seeking efficient ways to process large trade payments in local currencies like the naira and cedi, and settle in international currencies such as the dollar and euro. 

Flutterwave’s established infrastructure provides a simplified solution to these limitations, ensuring compliance, liquidity management, and operational efficiency.

Through a simple API integration, Flutterwave issues virtual accounts that allow Payful’s merchants to receive local payments via bank transfers, a more reliable method than card payments for large transactions. Funds are then settled globally through regulated channels, maintaining transparency and security.

Flutterwave said the collaboration aligns with its mission to support global enterprises looking to enter or scale within Africa. The company noted that its platform removes the burden of integrating multiple financial systems, handling foreign exchange risks, and meeting diverse regulatory demands.

Payful, which operates across multiple sectors globally, sees the African market as a key growth frontier. The company’s focus, it said, is to make payments for its African merchants as “seamless and reliable as they are everywhere else in the world.”

The upgrade, dubbed Fintech 2.0, moves Africa’s second-largest mobile money service to a cloud-native architecture, allowing it to process 6,000 transactions per second at launch, with the potential to double as demand rises.

“The scheduled M-PESA upgrade was successfully completed and all services fully restored. All M-PESA services are now available. We look forward to serving you better and providing you with seamless experiences,” the telco said in a tweet.

The migration addresses long-standing limitations. The previous system, operating near a 4,500-transactions-per-second ceiling, left little room for growth. Fintech 2.0 leverages microservices hosted on Huawei Cloud, enabling Safaricom to update individual components without taking the platform offline, a major step for reliability and speed.

Sources familiar with operations say engineers are monitoring live transactions to detect irregularities, a process expected to last several days. Other insiders indicate that the operator now aims to accelerate integrations with banks, fintechs, and developers, opening the door for new APIs, merchant credit products, and cross-border payment solutions.

M-PESA handles more than 21 billion transactions annually, serving over 50 million users across Africa, including payments, remittances, credit, and e-commerce. The upgrade is expected to strengthen its operations as a regional financial backbone, particularly for small businesses and cross-border trade, aligning with goals under the African Continental Free Trade Area (AfCFTA).

Competition is getting higher. Airtel Money and other digital-first fintechs have steadily expanded, putting pressure on M-PESA’s top place. The upgrade is not just a technical improvement, but aims to maintain leadership across the market.

In modernising its infrastructure, Safaricom positions M-PESA as a more agile, scalable, and partner-friendly platform. This change reflects the vision first backed by late CEO Bob Collymore, who framed the company’s future as a platform play rather than a closed service. 

With digital payments growing ever more competitive, Fintech 2.0 could enhance mobile money in Africa.

The company has built this model as a tool for both conversation and solving real enterprise problems in sectors like software engineering, financial services, and healthcare.

From day one, GPT-5 will replace its predecessors across ChatGPT platforms, and it’s being offered with expanded access tiers, including free usage, a $20/month Plus subscription, and a $200/month Pro tier. 

Developers also now have access through the OpenAI API, with three variants: GPT-5, GPT-5-mini, and GPT-5-nano. These versions differ in how long they spend “thinking” about problems, with pricing ranging from $1.25 to $10 per million tokens.

While consumer interest in AI remains high, enterprise adoption has been slower. OpenAI is hoping GPT-5 can tip the scale. The model delivers what CEO Sam Altman called “software on demand,” capable of building fully functional apps from natural language prompts. 

“GPT-5 is really the first time that I think one of our mainline models has felt like you can ask a legitimate expert, a PhD-level expert, anything,” Altman said during a press conference.

Behind the launch, OpenAI has struggled with the sheer technical demands of scaling up its models. The company has faced hardware failures during training, hit limits in the availability of new high-quality training data, and spent months waiting for results from high-cost training runs. 

At the same time, it has had to justify its skyrocketing costs, including investor expectations built on a potential $500 billion valuation and signing bonuses of up to $100 million for top AI talent.

Back then, when GPT-4 was launched, it passed a simulated bar exam in the top 10%, compared to GPT-3.5’s performance in the bottom 10%. With GPT-5, the upgrades are more subtle but targeted.

Take code generation. On SWE-bench Verified, a real-world benchmark for software engineering tasks, GPT-5 scored 74.9% on first attempts, outperforming Claude Opus 4.1 from Anthropic (74.5%) and Gemini 2.5 Pro from Google DeepMind (59.6%). In healthcare, its error rate on HealthBench Hard Hallucinations is 1.6%, far below GPT-4o’s 12.9%.

In science, GPT-5 Pro achieved 89.4% accuracy on PhD-level science queries, slightly ahead of rivals from xAI and Anthropic. But it lags in other areas, including real-time web navigation tasks. On the Tau-bench airline site navigation test, GPT-5 scored 63.5%, slightly behind OpenAI’s earlier o3 model (64.8%).

Despite these nuanced results, OpenAI insists the model is “safer, smarter, and more useful.” Alex Beutel, the company’s lead on safety research, said GPT-5’s reduced deception rates are essential for building trust. 

“It’s more transparent and honest in ways users can trust,” he said, adding that GPT-5 also more reliably filters out harmful queries while reducing false positives, unnecessary content rejections.

From a usability standpoint, GPT-5 also comes with new personalisation features. Users can now select from four built-in personalities, Cynic, Robot, Listener, and Nerd, which adjust the tone and structure of responses. Unlike earlier models, users no longer have to manually tweak settings to get different types of output.

Internally, OpenAI believes GPT-5 represents a shift in how people will use AI, not just to answer questions, but to act more like agents or assistants. 

That includes handling schedules, creating research briefs, analysing financial documents, and building apps from scratch. “This idea of software on demand is going to be one of the defining features of the GPT-5 era,” Altman said.

But while the ambition is high, there’s still caution among experts. Some reviewers told Reuters they weren’t convinced GPT-5 is a major leap over GPT-4. Others, like Noah Smith, raised concerns about the financial sustainability of current AI development. 

“Business spending on AI has been pretty weak, while consumer spending has been fairly robust because people love to chat with ChatGPT,” he said. “But the consumer spending on AI just isn’t going to be nearly enough to justify all the money that is being spent on AI data centres.”

Altman himself admitted GPT-5 still has limitations, especially around independent learning. It cannot, on its own, acquire new knowledge or skills without user input. And while test-time compute (a method of giving the model more thinking power when needed) helps in solving complex problems, it’s not a substitute for self-directed learning.

Still, the company believes in its innovation. With over 700 million weekly ChatGPT users and increasing partnerships with enterprise customers, GPT-5 may help OpenAI bridge the gap between consumer curiosity and business utility.