Andrew Jeffrey • William Blair & Company, L.L.C.

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President, Chairman & CEO, Ronald Clarke, stated that accelerating Corporate Payments growth is possible and depends on investment levels, highlighting the diversity of new client segments as a key attraction. He confirmed the Circle partnership is reciprocal, with Corpay planning to use Circle's technology for certain use cases and providing on/off-ramp services in return.

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President, Chairman & CEO Ronald Clarke stated that while accelerating Corporate Payments growth is possible with continued investment, the company avoids overspending. He emphasized that the main attraction is the diversity of new client segments (FIs, asset managers, digital asset providers). Clarke confirmed the Circle partnership is reciprocal, with Corpay providing on/off-ramp services and utilizing Circle's stablecoin, rails, and wallet for certain use cases.

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CEO Anthony Noto explained the strategy is to optimize return on equity by balancing both business models. The capital-light LPB offers high returns, especially with new originations outside SoFi's traditional credit box. CFO Chris Lapointe added that deposits, targeted at 85-90% of funding, will grow in line with the balance sheet, and that the LPB model can be expanded to other asset classes, ensuring growth is not constrained.

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CEO Anthony Noto explained that while the mix of fee-based revenue will meaningfully increase beyond 50%, SoFi will not become entirely fee-based. He highlighted that growth will come from the Loan Platform Business (especially if it expands to near-prime), interchange fees, and potential crypto offerings. However, Noto stressed the strategic importance of holding loans on the balance sheet to achieve a target ROE of 20-30%, requiring a balanced business model.

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CEO Anthony Noto stated that while there isn't a specific target number, they want fee revenue to be 'very significant' due to its capital-light, high-ROE nature. He noted they have even considered moving all lending to the fee-based LPB model over time. He emphasized that growing the $970 million annual fee business is a key strategy to drive high ROE.

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CEO Melissa Smith explained that fuel efficiency is a consistent headwind embedded in their outlook, while EV adoption is progressing slower than initially anticipated. For the new fintech offering, she highlighted WEX's competitive advantages, including its strong technology stack, credibility from managing complex travel payments, and its status as an end-to-end provider with a banking license, which is driving a strong pipeline.

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CEO Melissa Smith expressed confidence in travel, noting that customer multi-sourcing is a long-standing practice and that volumes should grow with the market. She asserted that the Benefits segment can outgrow the market through various revenue levers beyond account growth and that its long-term growth profile aligns with the company's overall targets.

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CFO Jagtar Narula broke down the Q4 revenue reduction into three parts: macro factors (fuel/rates), Mobility softness (same-store sales/late fees), and a Benefits revenue timing issue. CEO Melissa Smith addressed the visibility question by explaining that the negative drivers—a sharp fuel price drop, sudden volume softness in August/September, and last-minute contract deferrals—were all recent and unusual developments that were not apparent earlier.

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Mike Lyons, President, CEO & Director, stated the strategy is to build out the VAS portfolio in new international markets concurrently with expansion, with the goal of growing both. He described the competitive landscape as robust but emphasized Fiserv's focus on the vast, underpenetrated TAM. Robert Hau, CFO, added that VAS maturity varies globally, with markets like Australia being more advanced, presenting a future growth opportunity as Fiserv introduces more capabilities worldwide.

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President, CEO & Director Mike Lyons stated the strategy is to actively build out the VAS portfolio internationally, not just expand geographically, as it's a hallmark of the Clover platform. He described the competitive landscape as less of a race and more of an opportunity to serve a vast, underpenetrated market. CFO Robert Hau added that while the U.S. VAS market is more mature, Fiserv sees a significant opportunity to introduce these capabilities to new global markets, with working capital being a particularly strong global offering.

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Chairman and CEO Frank Bisignano described the current model as completely different from 5-7 years ago, built on the premise of the First Data merger to bundle core processing, bill pay, and Clover. President and incoming CEO Michael Lyons added that success is now driven less by the partnership structure and more by the quality of the product and Fiserv's ability to help banks serve their clients with integrated, value-added solutions.

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CEO Max Levchin explained that Affirm aggressively pursues 0% APR opportunities from merchants due to the significant brand halo, conversion lift, and incremental volume. While acknowledging a lighter revenue take, he highlighted the superior credit quality of these loans and their long-term value in acquiring prime candidates for the Affirm Card, calling it a "lifetime value booster."

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COO Michael Linford acknowledged that favorable market conditions are a benefit but asserted that Affirm's demonstrated credit performance has created a durable advantage with capital partners. CEO Max Levchin stated that while not many cardholders currently use direct deposit, it represents a significant opportunity. He explained that customers who do use it benefit from an increased ability to borrow as it gives Affirm a better understanding of their financial state.

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CEO Max Levchin explained that Affirm aggressively pursues 0% APR opportunities from merchants due to the significant brand halo and high conversion rates. He noted that while these loans have lighter revenue, they attract prime and super-prime borrowers, making them a powerful customer acquisition channel for the Affirm Card and boosting long-term value.

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CEO Michael Miebach detailed a strategy of first scaling tokenization globally, then building and pricing value-added solutions on top, such as lifecycle management. He highlighted that the next phase of digital commerce, like agentic AI, is centered on token technology, which will create further value and future pricing opportunities. He also noted the development of a local tokenization solution for the China market.

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Taylor Lauber, President and incoming CEO, emphasized that Global Blue is a phenomenal standalone business with rare capabilities. He described the $80 million synergy forecast as intentionally conservative, based on converting less than 10% of the largest customers, to provide a high-confidence floor. He stated the significant capital deployed reflects their true conviction in achieving a much better result.

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Ryan McInerney, Chief Executive Officer, stated there has been no change in emphasis and that Visa remains focused on all areas of value-added services. He explained that acquisitions like Pismo and Featurespace are part of a strategy to unbundle Visa's core capabilities (fraud, processing, network) and deliver them to a broader set of clients, often for non-Visa transactions.

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