Jamie Friedman

Jamie Friedman of Susquehanna International Group asked for a detailed explanation of how the 'Adapt AI' deployment results in a 5% average increase in GMV for merchants.

Answer

Founder & CEO Max Levchin detailed that Adapt AI is an AI model that automates the optimization of the checkout flow. It dynamically determines the most compelling financing offer for each individual consumer, which maximizes conversion rates and volume for the merchant while often lowering their promotional cost compared to manual configurations.

Jamie Friedman asked for perspective on respective revenue yields (or gross profit take rates) across different use cases, specifically comparing Europe to North America, and commercial (expense management) to consumer. He also inquired about the narrative on value-added services, given less coverage this quarter.

Answer

CEO and CFO Michael Milotich explained that gross profit take rates are generally consistent across use cases, with differences primarily driven by the mix and size of customers within each segment. Financial services and expense management tend to have slightly lower take rates due to very large customers, while on-demand delivery and lending/BNPL have higher take rates due to a more diversified customer base. He noted that TransactPay is expected to improve European gross profit take rates over time by enabling program management and value-added services. Regarding value-added services, Michael Milotich confirmed continued expansion, with a shift in engineering focus from scaling the core platform to developing more robust offerings. Key growth areas include tokenization and risk products, with a new white-label app solution launched this year to cater to embedded finance customers seeking full end-to-end solutions.

Jamie Friedman inquired about the respective revenue yields, specifically gross profit take rates, across Marqeta's different use cases, comparing Europe to North America and commercial initiatives to consumer offerings. He also asked for an update on the narrative surrounding value-added services.

Answer

CEO and CFO Michael Milotich explained that gross profit take rates are generally consistent across use cases, with variations primarily stemming from the mix of customer sizes within each segment (larger customers typically having lower take rates). He noted that financial services/neobanking and expense management, with their very large customers, tend to have slightly lower take rates, while on-demand delivery and lending/BNPL, with more diversified customer bases, see slightly higher rates. Milotich added that TransactPay is expected to improve European gross profit take rates over time by enabling program management, licensing, and value-added services. Regarding value-added services, Milotich stated that after achieving a new level of scale in the past 12-18 months, resources are now being diverted to expand these offerings, with tokenization and risk products growing quickly. He highlighted a new focus on white-label apps for user experience, particularly for embedded finance customers who seek full end-to-end solutions, anticipating this will become a significant part of the business in coming years.

Jamie Friedman asked for Mercado Libre's definition of 'principality,' the drivers behind the 11-point increase in Brazil and 2 points in Mexico, and whether new financial services are contemplated to further escalate principality.

Answer

President of FinTech Osvaldo Gimenez defined principality as at least 50% of a client's income passing through Mercado Pago, assessed via surveys and open banking data. He noted that yielding accounts and strong credit offerings are key existing drivers. The main missing service is the ability to collect salary directly into Mercado Pago accounts, which requires a banking license in Mexico (in process) and greater portability adoption in Brazil.

Jamie Friedman inquired about MercadoLibre's definition of 'principality,' the drivers behind the 11-point increase in Brazil and 2-point increase in Mexico, and whether the company contemplates offering new financial services to further escalate principality.

Answer

MercadoLibre President of FinTech Osvaldo Gimenez defined principality as at least 50% of a client's income passing through Mercado Pago, assessed via surveys and open banking. He noted that the yielding account and strong credit offering are key drivers. He identified the ability to collect salaries directly into Mercado Pago accounts as a significant future opportunity, currently limited by Mexico's banking license status and Brazil's small portability volume.

Jamie Friedman of Susquehanna International Group asked for an explanation of how the mix shift to credit cards is impacting the Net Interest Margin (NIM) and for the company's overall message on credit quality.

Answer

Fintech President Osvaldo Giménez explained that the NIM is impacted because credit cards have a lower NIM and are growing faster than the rest of the credit book. He also noted that lower inflation is reducing Argentina's previously high NIM. Regarding credit quality, he stated they are 'very bullish,' having improved their models and feeling comfortable re-accelerating card issuance, with older cohorts already profitable.

Jamie Friedman asked about the ability to transfer successful best practices from the European market to the U.S., considering similarities, differences, and potential synergies.

Answer

Devin McGranahan (CEO) detailed the three components of the European model (distribution, go-to-market strategy, strategic pricing) and how they differ in the U.S. He explained that the Intermex acquisition helps broaden the independent agent network, strategic pricing is being implemented in U.S. metro markets, and the U.S. sales force will be restructured post-Intermex integration, with full implementation expected in the second half of 2026.

Jamie Friedman asked about the ability to transfer successful European best practices to the U.S., specifically regarding distribution, go-to-market strategy, and strategic pricing, and how these might differ given the distinct retail formats and city setups.

Answer

CEO Devin McGranahan detailed that the European model's three components (distribution, go-to-market, strategic pricing) are being adapted for the U.S. He explained that the Intermex acquisition significantly broadens the U.S. independent agent channel, analogous to Europe's strong independent network. Strategic pricing is being rolled out in U.S. metro markets, and sales force restructuring will align with European and Intermex approaches, with full implementation expected in H2 2026.

Jamie Friedman inquired if the stablecoin opportunity is primarily for cost reduction or revenue enhancement and asked about the timeline for applying the successful European strategy to the U.S. market.

Answer

CEO Devin McGranahan explained that the stablecoin initiative is initially focused on creating efficiency, reducing friction, and improving liquidity management (cost reduction), with the potential to eventually drive revenue if it improves the value proposition enough to attract more demand. He confirmed they are actively working to implement the European model in the U.S. 'right now,' with the head of the European business leading the project to standardize the go-to-market approach.

Jamie Friedman from Susquehanna International Group asked for clarification on the 70 basis point impact from higher post-sale customer support mentioned by the CFO. He also inquired about how AI delivery might influence the regionalization of Infosys's headcount and the optimal location for personnel.

Answer

CFO Jayesh Sanghrajka clarified that the 70 basis point impact on margins from post-sale customer support represented a return to normalized levels, as the previous quarter had seen an unusual benefit. CEO Salil Parekh explained that AI delivery, particularly with AI agents working alongside human teams, will integrate into the new delivery model, influencing headcount regionalization alongside other factors like visa changes, with specific ratios evolving over time.

Jamie Friedman (Susquehanna International Group) sought clarification on Accenture's definition of "advanced AI," specifically why data is not included, given its foundational role. He also asked how the current requirement to train and retool at scale for new technology waves compares to previous technological evolutions.

Answer

Chair & CEO Julie Sweet explained that the definition of "advanced AI" (Gen AI, Agentic AI, physical AI) is intended to transparently share growth in a new market spend, while data, though critical and growing significantly, is part of the existing digital core business. She noted that one out of every two advanced AI projects has significant data pull-through. Regarding the pace of retooling, Chair & CEO Julie Sweet stated that the current wave is moving faster than prior technology evolutions due to rapid demand and the speed of new skill development, building on Accenture's prior investment in classical AI training.

Jamie Friedman sought clarification on Accenture's definition of "advanced AI" (Gen AI, Agentic AI, physical AI) and why data, often considered foundational, is not explicitly included. He also asked how the current pace of technology retooling and scaling compares to previous technological evolutions.

Answer

CEO Julie Sweet clarified that the "advanced AI" definition focuses on new market spend, while data is critical, foundational, and drives significant pull-through in advanced AI projects, with Accenture's data business experiencing strong growth. She emphasized that the current pace of technology evolution and demand for new skills is faster than prior cycles, necessitating decisive talent rotation.

Jamie Friedman from Susquehanna International Group, LLP sought clarification on Accenture's definition of 'advanced AI,' specifically why data is not included, despite its foundational role. He also asked how the current pace of technology evolution and retooling requirements for AI compare to previous technological shifts.

Answer

CEO Julie Sweet explained that the definition of advanced AI (Gen AI, Agentic AI, physical AI) is intended to transparently share growth in new market spend, while data, though critical and growing significantly, is considered part of the broader digital core. She emphasized that the current technology evolution, particularly with AI, is moving faster than prior shifts, leading to quicker demand for advanced skills and a more decisive talent rotation strategy.

Jamie Friedman from Susquehanna International Group asked for an updated long-term view on take rates and inquired about the new product pipeline, particularly which innovations merchants are most excited about and their delivery timelines.

Answer

CEO Pedro Arnt reiterated that the long-term trend for take rates remains gradually downward, though this is offset by a mix shift to frontier markets and new, higher-margin products. He identified three key areas of product innovation with strong merchant interest that are already live: credit offerings via BNPL partnerships, the 'SmartPix' solution in Brazil that adds card-like features to PIX, and stablecoin on-ramp/off-ramp solutions.

Jamie Friedman of Susquehanna International Group asked about how Kyndryl is articulating the AI opportunity and about the company's confidence in achieving its long-term 'triple-double-single' financial targets.

Answer

Chairman & CEO Martin Schroeter explained that Kyndryl leverages AI internally via its Kyndryl Bridge platform for efficiency and externally by helping clients with AI adoption, focusing on data, security, and resiliency. Regarding the 'triple-double-single' targets, Schroeter expressed high confidence, citing favorable tax positioning for cash flow, the increasing mix of high-margin post-spin business for profit growth, and strong momentum in Consult and Alliances for revenue. CFO David Wyshner added that visibility is strong because contract performance is tracking closely to the healthy margins projected at signing.

Jamie Friedman of Susquehanna International Group questioned the decline in insurance bookings, the timeline for a transition to a subscription model, and how AI impacts DXC's overall competitive position.

Answer

CFO Rob Del Bene explained that insurance bookings have different dynamics and the existing backlog supports the mid-single-digit growth forecast, adding that a significant SaaS transition has not yet occurred. President & CEO Raul Fernandez described AI as a 'huge opportunity' that leverages DXC's deep industry expertise in complex, regulated environments.

Jamie Friedman from Susquehanna International Group asked for an update on the progress of Cognizant's three-vector AI strategy, questioning which vector is furthest ahead. He also sought to reconcile the increased commentary on "innovation" with the persistent weakness in short-duration discretionary spending.

Answer

CEO Ravi Kumar S confirmed that Vector 1 (hyper-productivity) is significantly ahead, driven by the market's focus on value. However, he expressed surprise at the rapid momentum in Vector 3 (agentifying the enterprise), noting a near doubling of Gen AI client projects. He clarified that "innovation" often involves using agentic AI to reduce costs and cycle times in novel ways, which aligns with client priorities even in a tight discretionary spending environment.

Jamie Friedman of Susquehanna International Group asked management to articulate EVERTEC's primary competitive advantage in Latin America, questioning whether it stems more from technology or from industry knowledge and experience.

Answer

President & CEO Mac Schuessler detailed a multi-faceted competitive advantage. He highlighted EVERTEC's proprietary, customizable, and market-proven technology as a primary strength. He also emphasized the company's deep industry expertise in helping clients launch and operate acquiring businesses, the credibility of being a regulated U.S. public company, and its significant on-the-ground presence with local teams in each country of operation.