Timothy Chiodo

Timothy Chiodo circled back on agentic commerce, specifically asking if an Affirm button could appear within the user interface of platforms like ChatGPT for instant checkout transactions, similar to Apple Pay or Stripe Link.

Answer

Max Levchin, Founder and CEO of Affirm Holdings, acknowledged that it's possible but made no specific announcements, emphasizing that agentic commerce is still very early. He affirmed that there is absolutely room for an Affirm button in all forms of commerce, including agentic commerce, especially where human supervision is involved, and that Affirm aims to be included in every wallet.

Timothy Chiodo asked about the potential for an Affirm button within agentic commerce platforms like ChatGPT for instant checkout transactions.

Answer

Max Levchin, Founder and CEO, stated it's possible but emphasized that agentic commerce is very early. He believes there is 'absolutely room for Affirm button in all, all possible forms of commerce,' especially with human supervision, and noted Affirm's accessibility through Apple Pay.

Timothy Chiodo asked about the international expansion opportunity with Affirm's large enterprise partners and whether any factors, such as exclusivity agreements, might limit this long-term growth.

Answer

CEO Max Levchin described the international landscape as a 'target-rich environment' and noted that Affirm still has significant runway for growth domestically in both e-commerce and offline retail. COO Michael Linford added directly that there are no limiting factors preventing them from scaling with major partners globally, other than the operational requirement to 'go get them' by establishing a presence and proving their capabilities in each new geography.

Timothy Chiodo inquired about the expected user experience and unit economics of the Apple Pay integration, particularly how economics would be managed if other BNPL options were also offered.

Answer

CEO Max Levchin deferred to Apple on user experience specifics but stressed that Affirm operates as an 'ingredient brand' that aims to be available in every channel. He stated that all major partnerships are structured with financial levers to ensure the overall business maintains its target RLTC of 3% to 4%, regardless of the consumer's entry point.

Timothy Chiodo asked for a recap of liability in agentic commerce for payment tokens versus digital wallets like Apple Pay and Google Pay. He also inquired about the expected digital wallet share of overall checkout within the agentic channel compared to traditional website checkout.

Answer

CEO Eido Gal clarified that with payment tokens, liability more often sits with the merchant, whereas with digital wallets, it more often sits with the issuing bank. Regarding the digital wallet share in agentic commerce, he stated it's difficult to predict due to only a handful of transactions to date, making any answer more of a guess than data-based.

Timothy Chiodo asked about the two paths for payment in agentic commerce (payment token vs. wallet providers like Apple Pay/Google Pay), specifically requesting a recap of where liability typically sits in each scenario. He also asked if the digital wallet share of overall checkout in the agentic channel is expected to be higher, lower, or similar to traditional website checkout.

Answer

Eido Gal, Co-founder and CEO, clarified that with a payment token, liability more often sits with the merchant, while through a digital wallet, it more often sits with the issuing bank. He stated that with only a handful of agentic transactions to date, it would be a guess rather than a data-based answer to predict the future digital wallet share in that channel.

Speaking on behalf of Timothy Chiodo, an analyst inquired about merchant adoption trends for the Adaptive Checkout offering and its impact on winning new logos. The follow-up question asked for more detail on the types of risky traffic driven by Agentic Commerce and its potential to increase demand for chargeback guarantees.

Answer

CEO Idogal explained that Adaptive Checkout, which optimizes the conversion funnel, is seeing strong, double-digit percentage adoption among sophisticated enterprise merchants and is a key contributor to high win rates. Regarding Agentic Commerce, he noted that fraudsters are early adopters, loading stolen credit cards into AI shopping agents, which drives the initial spike in risk. He clarified that while the trend is nascent, it is a strategic field for Riskified.

Timothy Chiodo requested a competitive comparison between Riskified and Stripe Radar. He also asked if Riskified's 7% GMV growth indicated market share gains, given the reported same-store sales weakness in certain categories.

Answer

CEO Eido Gal contrasted Riskified's deep, granular data intake (3x more than gateways) across the full transaction lifecycle with the limited data available to gateway solutions like Stripe's, stating this is why they rarely compete directly. CFO Aglika Dotcheva addressed growth, explaining their category mix differs from broad e-commerce, with strong performance in Travel offsetting weakness in Fashion & Luxury, suggesting performance is driven by diversification and execution.

Timothy Chiodo asked how Riskified's offerings position against fraud prevention products recently acquired by major card networks and inquired about the addressability of volumes from Apple Pay versus PayPal in Europe under PSD2 regulations.

Answer

Eido Gal, CEO, clarified that recent card network acquisitions are not directly competitive as they serve different parts of the value chain, such as issuer-side modeling. Regarding Europe, he explained that the region is primarily a non-guaranteed market for Riskified due to PSD2's impact, and he was not aware of a specific mechanical difference in how Apple Pay and PayPal are treated in the UK that would alter this view.

Timothy Chiodo from UBS questioned the strategy behind the Chime Card, a secured credit card, its higher interchange, and its role in credit building. He also explored the concept of 'graduation risk' and Chime's potential interest in offering a traditional, asset-light credit card.

Answer

Mark Troughton, COO, stated that the primary focus is on maximizing Chime Card adoption among members due to its significant opportunity. He acknowledged strong member demand for a traditional credit card, highlighting Chime's unique underwriting advantage from direct deposit data and top-of-repayment-stack position. He confirmed Chime's intent to offer such a product over time in an asset-light manner, without it being a material contributor in 2026. Chris Britt, Co-founder and CEO, added that the product continues to improve, attracting higher-earning segments ($75,000-$100,000 annually).

Timothy Chiodo from UBS inquired about the Chime Card's higher interchange and credit-building benefits, specifically asking about the 'graduation risk' for members improving their credit scores and whether Chime Core could enable a traditional credit card offering, along with the rationale for such a move.

Answer

Mark Troughton, COO, stated that while the priority is the Chime Card, there is significant member demand for a traditional credit card with higher liquidity and rewards. He believes Chime's superior transaction data and position at the top of the repayment stack offer a unique underwriting advantage, and Chime intends to offer such a product over time in an asset-light way, though it won't be a material contributor in 2026. Chris Britt, Co-founder and CEO, added that Chime is seeing the fastest growth among higher-earning segments, indicating the product's increasing appeal.

Timothy Chiodo requested more detail on the Chime Workplace initiative, asking about the nature of conversations with large enterprises and whether they are typically new to earned wage access (EWA) or switching from competitors.

Answer

COO Mark Troughton stated that while many potential enterprise clients are new to the category, some are considering switching from existing providers. He highlighted Chime's competitive advantages: offering a broad financial wellness solution beyond just EWA, providing a superior fee-free EWA product, and leveraging the trusted Chime brand to drive higher employee adoption.

Timothy Chiodo asked for more details on Marqeta's expanding card-to-card relationship with Klarna, specifically regarding its extension into 15 new markets for in-store and Apple Pay usage. He sought insights into potential card numbers, transaction volumes per card relative to competitors like Affirm, and whether the yield on this business would be lower, higher, or similar.

Answer

CEO and CFO Michael Milotich highlighted Klarna as a long-standing partner enabling innovation. He noted the expansion of the Visa Flexible Credential into 15 new markets follows a significant migration of over 5 million cards in three existing European countries in October. Milotich observed a substantial acceleration in business growth within those three markets post-migration, attributing it to Klarna's execution and Marqeta's platform capabilities. While unable to share specific Klarna numbers for the new markets, he indicated that European yields generally tend to be lower due to regional economics, though still healthy for Marqeta and competitive for Klarna's end-users.

Timothy Chiodo asked for more details on the Klarna card-to-card relationship, its expansion into 15 new markets (including in-store and Apple Pay), potential card numbers, volumes per card relative to Affirm, and directional yield expectations. He also inquired about the adoption of the flexible credential beyond Buy Now, Pay Later and demand from other customers.

Answer

CEO and CFO Michael Milotich confirmed Klarna is a long-standing partner, noting the expansion of the Visa Flexible Credential into 15 new markets follows a significant migration of over 5 million cards in three European countries last October. He observed strong growth acceleration in existing markets post-migration, attributing it to Klarna's execution and Marqeta's platform capabilities. He couldn't share specific card numbers or volumes but indicated European yields generally tend to be lower, though still healthy. Michael Milotich stated there's significant interest in the flexible credential beyond BNPL, particularly for future applications combining debit with revolving credit, potentially leading to a single card for 'pay now' and 'pay later' or revolving. He also sees expansion opportunities for the current BNPL use case to other issuers embedding BNPL offerings.

Timothy Chiodo requested details on the mechanics of BNPL-enabled cards, specifically the differences between pre-purchase and post-purchase decisions, and how interchange rates are determined for these flexible transactions.

Answer

Interim CEO & CFO Mike Milotich clarified that the primary innovation is in pre-purchase decisions, moving from single-use virtual cards to all-in-one cards with flexible credentials, like the Klarna OneCard. He explained that interchange depends on the consumer's payment choice, but these flexible credentials can qualify for credit-based interchange rates.

Timothy Chiodo inquired about Marqeta's potential role in the emerging trend of "Agentic Commerce," particularly given the company's capabilities with controls and single-use virtual cards, and its broader AI strategy.

Answer

Mike Milotich, Interim CEO and CFO, confirmed that Marqeta is well-positioned to enable agentic commerce, highlighting its track record with dynamic, real-time capabilities. He outlined Marqeta's broader AI strategy, which focuses on product innovation (like agentic commerce and dynamic rewards), internal productivity, and operational efficiencies for cardholder support.

Timothy Chiodo asked if Marqeta has all the necessary capabilities (money movement, processing, program management) to win large-scale embedded finance RFPs, referencing a recent large contract won by a competitor.

Answer

Interim CEO and CFO Mike Milotich affirmed that Marqeta is well-positioned for large embedded finance deals. He stated that these clients seek API-driven, full-solution providers offering credit, debit, and program management. He emphasized Marqeta's key differentiators are its modern platform that operates at scale, its comprehensive product suite (credit/debit, consumer/commercial), and its global presence, which are unique and advantageous.

Timothy Chiodo of UBS sought to confirm the primary factors for the guidance change and requested more detail on sophisticated customers bringing services in-house. He also asked about the pipeline for the Visa Flexible Credential.

Answer

CFO Michael Milotich confirmed the two main factors are new program launch delays and sophisticated customers in-sourcing capabilities, with the latter accounting for a 2-3 point impact on gross profit growth. He specified this includes customers taking over bank relationships, internalizing risk services, or creating direct platform connections. Regarding Visa Flexible Credential, Milotich stated Marqeta was the first to be certified and expects a customer to go live imminently, which is driving demand in the US, UK, and EU.

Timothy Chiodo asked for details on the moving parts behind the 60+ basis points margin expansion expected next year, including lower exit run rate costs, the reduction of TSA headwinds, associated cost savings, and accretion from smaller M&A deals. He also inquired about the debit network pricing environment, specifically related to NICE.

Answer

CEO Stephanie Ferris confirmed that M&A dilution in 2025 will become accretive in 2026, and the TSA headwind from Worldpay separation will diminish. She highlighted strong margin expansion in Q3 and Q4 for both banking and capital markets due to future-forward savings and a focus on high-margin recurring revenue. CFO James Kehoe added that M&A tack-ons, which were 45-50 basis points dilutive in 2025, will be slightly accretive (around 10 basis points) in 2026. He emphasized that the quality of the ACV mix, with a stronger pivot to core, digital, and payments (which have margins north of 50%), and robust cost programs, will drive margin expansion. Stephanie Ferris also stated that FIS operates in a rational pricing environment, including for NICE, where performance is driven by adding account volume and winning merchants, not primarily by pricing adjustments.

Timothy Chiodo asked for details on the 60 basis points plus margin expansion expected next year, specifically regarding the impact of a lower exit run rate of costs, the TSA headwind (70 basis points this year, less next year), associated cost savings, and accretion from smaller M&A deals. He also asked for a brief comment on the debit network pricing environment, particularly concerning NICE.

Answer

CEO Stephanie Ferris explained that M&A dilution in 2025 will become accretive in 2026, removing a significant headwind. She also noted that the TSA impact from the Worldpay separation, which affected margins in 2025, will no longer be a grow-over in 2026, providing a tailwind. CFO James Kehoe elaborated that M&A tack-ons, which diluted margins by 45-50 basis points this year, will be slightly accretive next year. He highlighted that the quality of the ACV sold, with a stronger pivot to core digital and payments (margins north of 50%), and the strength of second-half loaded cost programs, will drive margin expansion. Stephanie Ferris stated that FIS operates in a rational pricing environment, including for NICE, and that their focus is on adding account volume and winning merchants rather than pricing adjustments.

Timothy Chiodo asked about the overall impact of bank M&A trends on FIS's P&L, weighing the benefits from larger clients against potential losses from smaller client acquisitions.

Answer

CEO Stephanie Ferris noted that the bank M&A market remains suppressed, particularly for larger institutions. CFO James Kehoe added that FIS is a net beneficiary of consolidation over time. Because FIS has a strong market position with larger banks, which are typically the acquirers, the company gains more business from consolidation than it loses.

Timothy Chiodo from UBS explored the consumer-facing opportunities for Toast, given its growing network density, asking about the advantages this provides over competitors and potential new products like Toast Tables, Toast Takeout, and gift cards.

Answer

CEO Aman Narang highlighted the impact of Toast's scale, citing examples like millions of restaurant employees using Toast and the benchmarking product. He emphasized the consumer app's ability to facilitate order-ahead and pick-up, similar to Starbucks, across 100,000+ restaurants. Narang also discussed the potential for improved in-store guest experiences, such as card-on-file walk-out payments, and intelligent offers based on restaurant data.

Timothy Chiodo asked about the opportunities presented by Toast's dense network of restaurants for consumers, specifically mentioning products like Toast Tables, Toast TakeOut, the Uber partnership, and potential for gift cards, and how this network provides an advantage.

Answer

CEO Aman Narang explained that Toast's scale creates network effects, citing examples like employees preferring Toast-run restaurants and benchmarking products. For consumers, he highlighted the convenience of order-ahead features, the ability to bring diners into stores via partnerships like Resy or Toast Tables, and future possibilities like walk-out payments. He also mentioned intelligent offers during slow periods and centralized loyalty tracking as benefits of the dense network.

Timothy Chiodo inquired about Toast's go-to-market strategy in the core U.S. restaurant market, asking about sales coverage in major cities versus less dense areas and the potential use of third-party distribution channels.

Answer

CEO Aman Narang explained that Toast is surgically adding sales reps in underpenetrated markets while noting that rep productivity continues to increase even in highly penetrated areas. He stated that while partner referrals are a key part of the funnel, Toast intends to maintain its direct, in-house model for sales and support to control the end-to-end customer experience, which is a key differentiator.

Timothy Chiodo asked about the payback periods for large enterprise wins like Applebee's compared to the company average and inquired if payments are still attached to the majority of these deals.

Answer

CFO Elena Gomez explained that enterprise deals are evaluated individually and feature very attractive paybacks due to their large ARR values and lower churn, resulting in healthy LTV to CAC. She confirmed that the majority of enterprise customers attach payments, and deals remain economically attractive even without them.

Timothy Chiodo asked about the medium-term growth algorithm for SaaS ARPU per location, questioning if the recent mid-single-digit growth rate is the correct expectation given various factors like land-and-expand, international mix, and pricing.

Answer

CEO Aman Narang confirmed that a mid-single-digit growth rate for SaaS ARPU is the right way to think about the near term, including for the fiscal year 2025 guide. He emphasized that while the primary goal is maximizing total ARR through locations and attach rates, the company sees long-term opportunities to drive ARPU higher through data, AI, and creating more customer value.

Timothy Chiodo of UBS asked for insights into the Toast Capital program, noting its volume as a percentage of GPV is lower than peers like Square, and questioned its potential long-term scale.

Answer

CFO Elena Gomez affirmed the strong demand and excellent execution of the Toast Capital program, which reached $43 million in non-payment fintech gross profit. She noted that default rates are in line with expectations. While acknowledging different customer profiles compared to peers, Gomez stated there is no reason the program cannot grow through more attach over the long term, emphasizing that the company will pursue this growth in a balanced, risk-adjusted manner.

Tim Chiodo asked about the challenges and competitive moat in building global cross-border acceptance (licenses, relationships, branding, infrastructure), and the extent to which competitors can partner versus build their own networks.

Answer

CEO Michael Miebach detailed the significant challenges in building global acceptance, including licenses, local regulatory understanding, partner relationships, user experience, and ensuring safety/security, which collectively form a strong moat. He emphasized Mastercard's global fabric and local partnerships, noting that services play a key role. He also discussed partnership opportunities with digital wallets (e.g., Alipay Plus) for global acceptance, even with some competitors, and highlighted that domestic acceptance also supports cross-border reach.

Tim Chiodo asked about the challenges and competitive moat in building global cross-border acceptance, including factors like licenses, merchant/PSP relationships, branding, customer awareness, and infrastructure investment. He also questioned the extent to which competitors might partner versus build their own networks.

Answer

CEO Michael Miebach affirmed that building global acceptance is difficult and time-consuming, requiring a global presence with local understanding of regulations and partners. He emphasized the importance of driving preference, compelling user experience, and ensuring safety/security, which is supported by Mastercard's services portfolio. He noted that partnerships with digital wallets (like Alipay Plus) are a key opportunity for global acceptance, and Mastercard continuously seeks ways to partner even with competitors to expand network reach. CFO Sachin Mehra added that building domestic acceptance in many countries also serves cross-border volumes, reinforcing the moat.

Timothy Chiodo from UBS asked about the unit economics of rebates and incentives, specifically how they function at the beginning and end of contracts and what happens when a portfolio is migrated away.

Answer

CFO Sachin Mehra detailed that new contracts often involve both fixed and variable incentives. When a contract ends, the outcome 'depends' on the broader client relationship and negotiations. He cited the past Chase migration as an instance where incentives ceased ('rack rates'), but noted that if other business is won, incentives can be part of a new, comprehensive deal rather than simply ending.

Timothy Chiodo asked for a recap of Mastercard's foreign exchange hedging strategy, including its mechanics and how the results flow through the income statement.

Answer

CFO Sachin Mehra explained that Mastercard hedges its transaction exposures and monetary asset/liability exposures, which are cash-flow related, using hedge ratios typically between 50-80%. However, the company does not hedge translation exposures (the conversion of overseas earnings to USD) because they are not cash movements and are viewed as reverting to the mean over time.

Timothy Chiodo of UBS asked for details on Mastercard Move, specifically regarding its business mix (cross-border vs. domestic) and the accounting treatment of its revenues.

Answer

CEO Michael Miebach highlighted Mastercard Move's differentiated reach and strong growth in use cases like gig worker payments. CFO Sachin Mehra clarified the accounting: domestic, card-based revenues are reported within the Payment Network, while cross-border, non-card rail flows are included in Value-Added Services & Solutions.

Timothy Chiodo inquired about the evolution of Visa's growth algorithm, noting the increased contribution and accelerated growth of Value-Added Services (VAS) to revenue, and asked for insights into the drivers behind the approximately 30% growth in Revenue Performance Obligation (RPO), including value and timed incentives.

Answer

Ryan McInerney, Visa's Chief Executive Officer, linked the strong VAS growth to the strategies outlined at Investor Day. Chris Suh, Visa's Chief Financial Officer, explained that RPO includes 'value in kind' incentives, which are a significant lever for Visa, allowing clients to derive value and fostering client engagement, thereby driving value back to Visa across various business segments.

Timothy Chiodo asked about the evolution of Visa's growth algorithm, specifically the increasing contribution from Value-Added Services (VAS) and the drivers behind the roughly 30% growth in RPO (Revenue Performance Obligation), including value-in-kind incentives.

Answer

CEO Ryan McInerney linked the strong VAS performance to strategies outlined at Investor Day. CFO Chris Suh explained that RPO growth, while encompassing many factors, is significantly influenced by value-in-kind incentives, which serve as an important lever for client engagement and drive value across various parts of Visa's business.

Timothy Chiodo of UBS Group AG asked for a deeper dive into Visa Direct, focusing on its fastest-growing use cases, such as banks adopting it for cross-border payments, and its pricing strategy, including the potential evolution of its yield model.

Answer

CEO Ryan McInerney highlighted Visa Direct's scale, having surpassed 10 billion annual transactions, and confirmed the significant opportunity with banks embedding the platform for remittances. Regarding pricing, he explained that the model varies by vertical, use case, and geography, and while the cents-per-transaction yield is a good general metric, it doesn't capture all pricing components. He reiterated the yield is similar to the global debit business.

Timothy Chiodo from UBS Group AG requested details on Visa Direct, focusing on emerging use cases like bank-led cross-border payments and the evolution of its pricing strategy beyond a fixed per-transaction fee.

Answer

CEO Ryan McInerney highlighted Visa Direct's significant scale, now exceeding 10 billion annual transactions. He confirmed that banks are increasingly embedding the platform for remittances to enhance customer relationships. Regarding pricing, he explained that while the cents-per-transaction yield is a useful metric, the actual pricing is complex and tailored to the specific value, vertical, and geography, and is not solely a fixed fee.

Timothy Chiodo of UBS Group AG requested a deeper analysis of Visa Direct, focusing on its fastest-growing use cases, such as banks adopting it for cross-border payments, and its pricing strategy, including any evolution of its per-transaction yield.

Answer

CEO Ryan McInerney highlighted Visa Direct's scale, with over 10 billion annual transactions, and confirmed the strategy of enabling banks to offer remittance services. Regarding pricing, he explained that it varies by use case and geography and that the cents-per-transaction yield is a general metric, with overall yields being similar to the global debit business.

Timothy Chiodo from UBS asked for more detail on the difference between nominal cross-border volume growth and international revenue growth, specifically focusing on the pricing component.

Answer

CFO Chris Suh confirmed the primary driver of the delta was foreign exchange impact. Regarding pricing, he reiterated the company's original guidance that the full-year pricing contribution would be similar to the prior year but more weighted towards the second half. This expectation remains unchanged.

Timothy Chiodo asked for details on the mix of Visa's cross-border business, specifically seeking to understand the growth contribution from Visa Direct-related components like remittances and marketplace payouts within the e-commerce segment.

Answer

Chris Suh, Chief Financial Officer, noted that travel and e-commerce growth rates converged in the quarter. He stated that while the cross-border portion of Visa Direct is growing much faster than the overall 34% transaction growth, it remains a small part of total transactions. Ryan McInerney, CEO, added that despite its success, cross-border Visa Direct is still a very small portion of overall cross-border volume.

Timothy Chiodo requested more detail on two key components of Value-Added Services, DPS and CyberSource, asking for relative growth rates or updated volume statistics.

Answer

CEO Ryan McInerney acknowledged the strong progress of both DPS and CyberSource but stated that Visa does not disclose transaction volumes or other specific metrics at that granular level of reporting.

Timothy Chiodo requested more specific data on the Buy Now, Pay Later business, including the mix of pay-in-4 versus longer-term pay monthly loans, current loss rates, and the transaction margin dollar net take rate per unit of BNPL volume, to facilitate comparison with competitors like Affirm and Klarna.

Answer

CFO Jamie Miller explained that most of PayPal's BNPL product is pay-in-4, with an average portfolio turn of about 40 days, which is a much higher turn than some peers. She stated that PayPal's BNPL economics are on par with or better than competitors. Jamie Miller emphasized that BNPL is viewed holistically at the total branded checkout level, driving habituation and engagement, leading to 30% to 40% incremental usage of branded checkout and sustained stickiness.

Timothy Chiodo (UBS Securities LLC) requested details on the mix of PayPal's Buy Now, Pay Later products (pay-in-4 versus longer-term pay-monthly loans) and insights into loss rates. He also sought clarification on the transaction margin dollar net take rate per unit of BNPL volume to enable comparison with competitor metrics like RLTC as a percentage of GMV.

Answer

CFO Jamie Miller clarified that most of PayPal's Buy Now, Pay Later volume consists of pay-in-4 and pay-monthly products, with an average portfolio turn of approximately 40 days, indicating a shorter duration compared to some peers. She stated that PayPal's BNPL economics are on par with or better than competitors. Miller emphasized that BNPL is strategically viewed holistically to drive habituation, engagement, and a sustained 30-40% incremental usage across the broader branded checkout and PayPal ecosystem.

Timothy Chiodo from UBS Group AG asked about the role of prominent placement for the branded checkout button in merchant negotiations and how those strategic conversations are changing.

Answer

President, CEO & Director Alex Chriss explained that conversations are now more holistic, focusing on merchant needs like customer acquisition. He highlighted a shift away from rigid placement negotiations towards using PayPal's new Payment Ready API, which personalizes the checkout experience for each consumer by identifying them upfront and presenting the most relevant payment option, thereby increasing conversion for the merchant.

Timothy Chiodo asked for details on the competitive landscape in Germany and the U.K., and for an update on the progress of rolling out biometrics for authentication in the U.K.

Answer

CEO Alex Chriss described Germany as a market where PayPal is a leader, with a significant opportunity to launch its bank-connected off-line wallet. In the more competitive U.K. market, he said the company is improving its app and has successfully rolled out biometrics to reduce friction. He also highlighted a strong merchant demand for PayPal's BNPL solution in the U.K.

Timothy Chiodo asked how the product mix within branded checkout has evolved from its historical skew towards discretionary goods and whether it would outperform if discretionary spending improves.

Answer

CFO Jamie Miller explained that PayPal has successfully expanded into services over the last couple of years, creating a more balanced mix across verticals. As a result, she expects the dynamic of being heavily tied to discretionary goods spending to be more muted than it was in the past.

Timothy Chiodo asked about Braintree's competitive positioning, specifically whether it is still a price leader after its pricing reset, and if the PayPal button can still be bundled for prominent placement in new contracts.

Answer

CEO Alex Chriss explained that the company is changing the conversation from being a commodity price leader to a strategic partner focused on total value. He stated that discussions with merchants now center on growth drivers like new customer acquisition via value-added services, an ads platform, and payment APIs. While pricing for branded checkout remains important, the focus is on bigger, more strategic conversations that help merchants grow their entire business, not just process payments.

Tim Chiodo asked about the Intermex acquisition, specifically whether its advantageous system (speed, UI/UX) would be ported over to Western Union or if Intermex locations would transition to the Western Union platform, and how this integration would play out.

Answer

CEO Devin McGranahan stated the intention is to maintain the Intermex brand, locations, and go-to-market model. He also mentioned plans to learn from and potentially integrate the Intermex model into Western Union's Vigo and independent agent networks in the U.S., preserving their existing successful operations.

Tim Chiodo asked about the Intermex acquisition, specifically whether Intermex's system advantages (speed, UI/UX) would be ported to Western Union or if their system would be retired.

Answer

Devin McGranahan (CEO) stated the intention is to maintain the Intermex brand, locations, and go-to-market model. He also mentioned exploring ways to integrate the Intermex model into Western Union's Vigo and branded independent agents in the U.S., aiming to learn from their approach.

Timothy Chiodo requested more details on the fraud losses mentioned in the quarter and asked about any significant upcoming partner contract renewals.

Answer

CFO Matt Cagwin explained the fraud loss was a non-material duplicate payment issue from a new real-time payment network implementation, which did not impact margins. CEO Devin McGranahan stated that all major contract renewals for 2025 are complete, including over a dozen in the U.S. and an expansion to an exclusive relationship with the UK Post, with nothing unusual on the horizon.

Timothy Chiodo asked for the current size of the payout-to-account (APN) business as a percentage of transactions, given its 35% growth rate. He also inquired about the drivers and durability of the company's mid-teens adjusted tax rate.

Answer

CFO Matt Cagwin stated that the APN business now constitutes a low-double-digit percentage of retail transactions and is in the high 30s for digital transactions, having grown significantly over the past 8-10 quarters. Regarding the tax rate, he explained that the non-GAAP rate is based on a cash tax basis and that the company has structures in place that provide a stable tax basis, supporting a durable mid-teens rate for the medium term.

Tim Chiodo inquired about the rollout of debit card acceptance at retail locations, asking about historical limiting factors and the margin profile of these card-funded transactions.

Answer

CEO Devin McGranahan stated that historically, the company lacked the infrastructure and merchant acquiring relationships for card payments. They have now invested to modernize the retail experience. CFO Matt Cagwin added that the economics are favorable; in Europe, lower interchange fees and savings on cash handling have actually reduced costs. While early in the U.S., they are optimistic the initiative will be accretive and help gain share where competitors already offer debit.

Timothy Chiodo asked for more detail on the changes to Flywire's hiring and compensation strategies, requesting a high-level 'before and after' view, particularly for the sales team.

Answer

CEO Mike Massaro explained the changes are a refinement of their pay-for-performance culture. Key adjustments include tying senior leadership more heavily to equity, tailoring cash/equity mixes to attract global talent, and creating stronger variable compensation incentives for sales teams to significantly exceed quotas. The goal is to ensure employees are incentivized to reach higher and that executive interests are aligned with shareholders.

Timothy Chiodo inquired about the revenue mix and growth rate of the U.K. education market, noting its increasing importance to Flywire's overall business and seeking to understand its growth contribution.

Answer

CFO Cosmin Pitigoi confirmed the U.K. is now Flywire's largest education market and has experienced very strong growth, driven by new products. President and COO Rob Orgel added that the comprehensive product suite, including the recently introduced SFS, StudyLink, and payables, is creating a unique value proposition that is driving new client wins and building a strong future pipeline.

Timothy Chiodo of UBS inquired about global student mobility trends, asking if students are shifting to different markets or pausing education plans, and whether the company's guidance assumes any recapture of these students in other regions.

Answer

President and COO Rob Orgel confirmed that students are being redirected to other markets like the U.K., the U.S., and parts of Europe, a trend they observe in their data and through agent partners. CEO Mike Massaro added that underlying student demand remains strong. However, CFO Cosmin Pitigoi clarified that the current guidance does not assume any revenue recapture from these shifting student flows.

Timothy Chiodo asked about Shift4's international strategy, specifically the rationale behind the SmartPay acquisition in Australia, and for context on the full-year end-to-end volume guidance, including any impact from the Global Blue acquisition.

Answer

CEO Taylor Lauber explained that Australia is a relatively easy market to enter and that SmartPay provides a strong distribution network, a playbook similar to the Vectron acquisition in Europe. CFO Nancy Disman added that Global Blue's acquiring volume is minimal (sub-$2 billion) and included in the guide, which remains unchanged due to the variable timing of large enterprise go-lives.

Timothy Chiodo from UBS asked for clarification on the in-year volume contribution expected from the $35 billion backlog and whether the ticketing vertical was a major component.

Answer

Taylor Lauber, President and incoming CEO, confirmed that the logic for calculating in-year volume from the backlog was sound, with most implementations occurring over the next 12 months. He also clarified that while ticketing is a contributor, it does not represent a disproportionate portion of the overall backlog, which includes several multi-billion dollar enterprise wins.

Timothy Chiodo of UBS Group AG inquired about Shift4's Q4 end-to-end volume guidance, its seasonality, and its viability as a baseline for 2025 projections. He also asked for details on the key growth drivers for the upcoming year, including recent acquisitions and gateway conversions.

Answer

President Taylor Lauber confirmed that Q4 seasonality has become more predictable due to the growing sports and entertainment vertical, making it a reasonable annualized baseline, though he noted Q1 is typically softer. CEO Jared Isaacman reinforced this by highlighting the $33 billion contracted volume backlog and stating that annualizing Q4 EBITDA already positions them well against 2025 consensus estimates, deferring a full breakdown of growth levers to a future Investor Day.

Timothy Chiodo asked about Shift4's Q4 end-to-end volume guidance, questioning if reduced seasonality makes it a reliable baseline for 2025, and requested elaboration on the key growth drivers like Vectron, Revel, and gateway conversions.

Answer

President Taylor Lauber confirmed that Q4 seasonality has lessened due to the sports and entertainment vertical, making it a reasonable annualized baseline, though he cautioned that Q1 is historically softer. CEO Jared Isaacman added that annualizing Q4 EBITDA already positions them well against 2025 consensus and highlighted the $33 billion contracted volume backlog as a significant, committed growth driver, deferring a more detailed breakdown to the upcoming Investor Day.

Timothy Chiodo from UBS Group AG requested more detail on the outbound sales initiative, asking about the specific quotas and metrics for sales representatives and the expected payback periods or LTV-to-CAC ratios for this investment.

Answer

President JD St. Martin explained that outbound reps are diligently measured on demos booked, demos attended, and monthly bookings. He affirmed that the company continues to see strong unit economics, with payback periods in the high single-digit to low double-digit months for fully ramped reps, which he described as 'best in class' for a SaaS business.

Timothy Chiodo pointed out the significant deceleration in Lightspeed Capital's revenue growth during the quarter and asked if there were any specific nuances, such as lapping dynamics, that caused this slowdown.

Answer

CFO Asha Bakshani attributed the deceleration directly to the macroeconomic softness that impacted merchant same-store sales in Q4. Because capital advances are repaid as a percentage of sales, lower merchant GTV resulted in a slower pace of collections and therefore lower recognized revenue. She added that with same-store sales stabilizing in April and May, Capital revenue should recover in the next quarter.

Timothy Chiodo asked for an update on the competitive environment in North American retail, specifically in relation to the scaling of Shopify's retail POS and new offerings from Clover.

Answer

President JD Saint-Martin differentiated Lightspeed's strategy by emphasizing its deep focus on specific 'fortress verticals' like bike, golf, and apparel. He contrasted this with competitors' 'broad and shallow' approach, stating that Lightspeed's strength in complex inventory management, enhanced by its supplier network, provides a significant competitive advantage in its target niches.

Timothy Chiodo requested quantification of the upcoming subscription price increases and asked about the growth and use cases for the 'payment links' feature.

Answer

President JD Saint-Martin described the price adjustments as affecting a 'significant number of customers' with a 'meaningful' increase but declined to provide specific figures due to their sensitive nature. He added that payment links are seeing 'incredible adoption' for capturing off-platform GTV, like invoicing, though it's still in its early days.

Timothy Chiodo from UBS Group AG inquired about Fiserv's strategy for Clover Capital, noting its underpenetration compared to peers and asking about specific activities to unlock its total addressable market (TAM), particularly with wholesale ISO and bank partners.

Answer

Mike Lyons, President, CEO & Director, acknowledged that Fiserv is in the early stages of a more holistic strategy for Clover Capital. He explained that the company is making operational refinements to how it presents, negotiates, and prices capital offers to merchants. Lyons emphasized that while they maintain a prudent risk management approach, which is currently more conservative than competitors, they see significant room for growth within their existing risk appetite and potential to expand it over time.

Timothy Chiodo of UBS Group AG inquired about Fiserv's strategy to increase the penetration of Clover Capital, noting it is significantly lower than peers, and asked about specific activities to unlock this market, particularly with wholesale ISO and bank partners.

Answer

President, CEO & Director Mike Lyons responded that while Fiserv is on pace for its $3.5 billion Clover revenue target, Clover Capital is its most underpenetrated area. He stated that the company is taking a prudent approach to risk management while implementing operational, pricing, and offer-related refinements. Lyons emphasized that these efforts are in the early stages and that Fiserv sees significant room for growth within its current risk appetite, which is currently more conservative than competitors.

Timothy Chiodo asked for more detail on the factors driving the gap between Clover's volume and revenue growth, with a specific focus on how the increasing mix of direct distribution will contribute to future revenue targets.

Answer

CFO Robert Hau acknowledged that the direct channel is the newest and fastest-growing distribution channel, which benefits overall revenue and margin. However, he emphasized that Fiserv sees significant growth opportunities across all of its broad and deep distribution channels, including its financial institution merchant partnerships, rather than relying on a single one.

Timothy Chiodo inquired about the DoorDash contract, the pipeline for other embedded finance opportunities, and how the PayFare acquisition enhances Fiserv's in-house program management capabilities.

Answer

CFO Bob Hau confirmed the rapid ramp-up of the DoorDash program. He explained that while Fiserv already has program management capabilities and partners, the pending PayFare acquisition will add valuable in-house expertise. Hau emphasized that Fiserv's comprehensive suite of assets is a key differentiator for winning large embedded finance clients.

Timothy Chiodo sought more detail on the drivers behind the forecasted acceleration in Financial Solutions revenue growth for next year (from 5-7% to 6-8%), referencing wins like Target, Desjardins, Verizon, and CashFlow Central.

Answer

Chairman, President and CEO Frank Bisignano expressed high conviction, reinforced by the recent client conference. He pointed to a growing pipeline and multiple growth engines, including Finxact adoption (e.g., DoorDash), the new SMB bundle, and cross-sell opportunities from the merchant business. He also highlighted the long-term potential of providing AI and data services to financial institutions.

Timothy Chiodo of UBS inquired about the scope of the Fiserv partnership, asking if Paysafe merchants have access to the full suite of Clover offerings beyond capital. He also asked for details on the differing unit economics and commission structures between Paysafe's direct and indirect (ISO) sales channels.

Answer

CEO Bruce Lowthers described the Fiserv relationship as strong and evolving, pointing to a recent announcement about a digital wallet for Clover customers as an example of expanding offerings. Regarding sales channels, Lowthers explained that ISOs receive an upfront payment and a long-term residual, while direct sales commissions are tied to actual revenue and are shorter-term. CFO John Crawford added that this structure means margin flow-through on direct business accelerates as the shorter-term commissions roll off.

Timothy Chiodo asked for details on the value-added services opportunity, specifically the Jaris partnership for commercial lending, and inquired about the potential service overlap with its Clover distribution.

Answer

CEO Bruce Lowthers described the Jaris partnership as a no-risk referral model for working capital loans, representing the start of a broader push into ancillary services. CFO Alexander Gersh confirmed this is contributing to a higher take rate in Merchant Solutions year-over-year. Regarding Clover, Lowthers characterized Fiserv as a 'great partner,' emphasizing collaboration on product innovation and distribution rather than competitive overlap.

Timothy Chiodo from UBS asked about the industry trend of ISVs moving to a multi-processor environment and whether REPAY is observing changes in how many payment providers its software partners are using.

Answer

CEO John Morris noted that consolidation among large processors is creating new opportunities for REPAY's clearing and settlement business. However, CFO Tim Murphy clarified that within REPAY's core verticals, there has not been much change; ISVs typically use 2-3 providers, and REPAY is often preferred due to its domain expertise. Morris added that REPAY's comprehensive payment modality solution is a key differentiator for its partners.

Timothy Chiodo asked for details on Repay's paid ACH offering, focusing on its data attachment capabilities versus virtual cards and whether more suppliers are equipped to handle enriched data via card versus ACH.

Answer

CFO Tim Murphy explained that paid ACH offers enhanced data for which suppliers pay a fee, improving reconciliation over standard ACH. CEO John Morris emphasized the value of this enriched data. Murphy clarified that Repay's proprietary supplier enablement process, covering its 360,000+ supplier network, helps determine the optimal payment method and ensures suppliers can receive the associated data.

Timothy Chiodo from UBS asked about the competitive differentiation of Shopify's Point-of-Sale solution and its go-to-market strategy compared to peers.

Answer

President Harley Finkelstein positioned Point-of-Sale as a key multiyear growth driver, citing 23% offline GMV growth and wins with large, multi-location retailers. He stated the primary competitive advantage is the unified commerce platform that integrates online and offline sales seamlessly. He also highlighted a high velocity of feature rollouts and a distribution strategy that includes working with major SIs as key to winning business.

Timothy Chiodo asked about the level of investment, in dollar terms, that has gone into the Genius product over the past few years and how that investment strategy might change with the increased capacity following the Worldpay acquisition.

Answer

CEO Cameron Bready explained that while historical POS investment has been heavy, the recent focus has been on harmonizing that spend into the single Genius platform to amplify its impact across the business. COO Bob Cortopassi added that this approach accelerates innovation without necessarily increasing the raw dollar amount. Post-acquisition, with over $1 billion in annual investment capacity, Genius will remain a top priority, allowing the company to blend innovation with its new, massive scale.

Timothy Chiodo asked about the broader landscape of the bank partnership channel, given AvidXchange's key partnerships and the thousands of other banks in the U.S.

Answer

CEO Michael Praeger clarified their two-pronged bank strategy: banks as customers and banks as channel partners. He explained that the company has learned that a 'reseller' model is more effective and scalable than complex 'white label' integrations. AvidXchange now has over 20 reseller bank partners, including recent additions like Cadence Bank and Orange Bank & Trust, which collectively represent about 50,000 potential commercial customers.

Timothy Chiodo of UBS asked about the potential implications of the recently rejected credit interchange settlement on commercial interchange rates, both for the industry and for AvidXchange's custom rates.

Answer

CEO Michael Praeger explained that the impact is likely greater on the consumer side. He stated that AvidXchange has already been proactive on the B2B side by creating multiple payment modalities, including a dozen virtual card offerings with different price points and data levels. He noted that by helping suppliers leverage different data rates with their primary partner, MasterCard, they are already providing the best economics, which contributes to high supplier retention.

Inquired about the U.S. GPV trends for the Seller business, asking for an outlook for the second half of the year and 2025, considering past headwinds and upcoming initiatives.

Answer

Jack Dorsey described a 'perfect storm' of improvements for Square, including product simplification, platform upgrades like the orders migration, and a new centralized sales strategy, which he expects to drive growth in late 2024 and 2025. Amrita Ahuja added that Q2 GPV growth was 8% and is expected to remain stable in the second half. While same-store growth has moderated due to macro trends, strategic areas like vertical POS, banking, and international markets are showing strong growth.