Will Nance

Will Nance asked about Cash App's Monthly Active User (MAU) growth, which came in stronger than expected and aligned with Investor Day discussions, requesting a reminder of the company's growth algorithm from an MAU perspective.

Answer

Business Lead Owen Jennings expressed satisfaction with MAU growth in the second half of 2025, reaching 59 million in December. He attributed this to multiplayer money initiatives (P2P on web, new core payment flow, Payment Links), network enhancements, and a focus on teens and the next generation (expanding Cash App Cards and savings accounts to 6-12 year olds). Owen emphasized the quality of new actives, noting that 21% of new actives in December attached to a banking product, a meaningful increase year-over-year. He reiterated confidence in achieving low single-digit year-over-year MAU growth.

Will Nance asked about Cash App's Monthly Active User (MAU) growth, which exceeded expectations at 59 million in December, and how Block is thinking about the growth algorithm for MAU going forward.

Answer

Business Lead Owen Jennings attributed MAU growth to 'multiplayer money' initiatives (P2P on web, new payment flow with MoneyBot, Payment Links), network enhancements, and a focus on teens and the next generation (expanding access to 6-12 year olds). He emphasized the quality of new actives, with 21% in December attaching to a banking product, and expressed confidence in achieving low single-digit year-over-year growth while aiming to surpass expectations.

Will Nance asked for clarification on the $30 million integration and investment spending within the free cash flow bridge, specifically its expected duration and the potential for free cash flow conversion to exceed 60% in 2027 as this spend winds down. He also questioned Shift4's capacity for further M&A, considering the lower free cash flow this year and current debt levels, and whether a pause on M&A is anticipated after recent large deals.

Answer

Taylor Lauber, CEO, stated that a significant portion of the $30 million is one-time integration expense, with some allocated to building sales teams that typically take 1-2 years to become self-sufficient. He indicated that Shift4 is focused on smaller, strategically aligned M&A, such as acquiring small payment sales teams in specific countries, rather than large, far-afield transactions. Christopher Cruz, Chief Financial Officer, added that the integration spending often appears in CAC and EUL lines, reflecting aggressive incentivization in new markets. He emphasized that capital is always viewed as a scarce resource, and allocation decisions balance growth CapEx with acquiring distribution assets to accelerate international expansion.

Will Nance asked about the $30 million integration and investment spending within Shift4's free cash flow bridge, inquiring about its expected duration and flow-through into 2027. He also questioned the company's capacity for further M&A, considering the lower free cash flow this year and current debt levels, and whether a pause on M&A is anticipated after recent large deals.

Answer

Taylor Lauber, CEO, stated that a significant portion of the $30 million is one-time integration expense, with some allocated to building sales teams that take 1-2 years to pay for themselves. Christopher Cruz, Chief Financial Officer, added that this spending might appear in CAC and EUL lines, reflecting aggressive incentivization in new markets. Taylor Lauber clarified that Shift4 constantly evaluates M&A opportunities, focusing on smaller, strategically aligned deals like acquiring small payment sales teams in specific countries, rather than large, far-afield transactions. Christopher Cruz emphasized viewing capital as a scarce resource, regardless of leverage capacity or liquidity.

Will Nance inquired about the progress of European restaurant initiatives, including SkyTab installations and the Vectron cross-sell, and asked for the reasons behind the more constructive outlook on blended net spreads.

Answer

CEO Taylor Lauber reported that with formal control of Vectron now complete, production is ramping and the payments cross-sell is proceeding well. He noted that European expansion is adding smaller merchants, which supports stronger spreads as these customers value the integrated software and payments solution and are willing to pay a premium over traditional terminals.

Will Nance inquired about the expected impact of the new variable pricing model for MyPay on ARPU and transaction margin, and how expanding access might affect loss rates. He also asked about the trajectory of Chime Enterprise and its potential contribution to user growth.

Answer

Matt Newcomb, CFO, and Chris Britt, Co-Founder and CEO, highlighted MyPay as a significant revenue tailwind. Mark Troughton, President, explained the shift to a variable pricing model to scale the product and expand access, noting MyPay yield increased in Q4 and is expected to further improve. He stated the goal is to optimize transaction profit, potentially allowing for slightly higher loss rates. Mark Troughton also expressed excitement for Chime Enterprise, noting strong adoption, higher monetization, and greater retention among enterprise members, with contributions included in overall guidance.

Will Nance asked about the expected impact of the new variable pricing model for MyPay on ARPU and transaction margin in Q1, and how Chime plans to expand access while optimizing for transaction profit, potentially by tweaking loss rates. He also inquired about the trajectory of Chime Enterprise and its potential as a meaningful contributor to user growth throughout the year.

Answer

Chris Britt, Co-Founder and CEO, highlighted MyPay as a significant revenue tailwind for 2026. Mark Troughton, President, noted MyPay's breakout year in 2025 with $400 million in revenue and nearly 60% transaction profit margin by Q4. He explained the shift from a fixed to a variable pricing model, which began in Q4 2025 and culminated in January, to scale the product and expand access. While not giving specific guidance for MyPay, Troughton confirmed it's built into overall revenue and EBITDA guidance, and Chime will optimize MyPay for net experience and transaction profit, potentially allowing for slightly higher loss rates to drive growth. For Chime Enterprise, Troughton stated it's a 2026 priority, resonating well with employers due to its free offering and existing Chime member base. He confirmed enterprise adds are included in overall guidance, noting higher monetization and retention for enterprise members compared to direct-to-consumer channels.

Will Nance with Goldman Sachs asked about Chime Card rollout expectations, specifically attach rates for new cohorts and its prioritization as a primary customer experience. He also sought clarification on rewards costs for direct deposit customers and how they are booked.

Answer

Chris Britt, Co-founder and CEO, reported that new members adopting the Chime Card show 80% of their Chime ecosystem purchase volume as credit spend, with ongoing rollout to existing members. Matt Newcomb, CFO, clarified that the 175 basis points interchange rate for the Chime Card is already net of rewards expense, as rewards are booked as contra-revenue. Will Nance also inquired about OIT adoption and its impact on payment volume trends. Matt Newcomb confirmed that OIT adoption is expected to grow faster in the coming quarters, continuing the shift from payments to platform revenue, as newer cohorts adopt it at higher rates.

Will Nance from Goldman Sachs asked about the Chime Card rollout, specifically expectations for attach rates on new cohorts and its prioritization for new customers. He also sought clarification on the 175 basis points interchange rate, asking if it was net of rewards costs and how rewards would be booked.

Answer

Chris Britt, Co-founder and CEO, reported that new members adopting the Chime Card are using it for 80% of their purchase volume as credit spend, with early rollout to existing members underway. Matt Newcomb, CFO, clarified that the 175 basis points interchange rate is already net of rewards expense, as rewards are booked as contra-revenue. Will Nance followed up on Outbound Instant Transfers (OIT), asking if the substitution effect from 'pull' to 'push' was leveling out or expected to continue growing faster than sequential payment volume changes. Matt Newcomb confirmed that OIT is expected to grow faster in the coming quarters, continuing the mixed shift from payments to platform revenue, especially as newer cohorts adopt it at higher rates.

Asked about the recent trend of lower spend per customer and how to model it, and questioned the potential impact of proposed bank fees for data access on the economics of the MyPay product for non-direct deposit users.

Answer

The lower spend per customer is a mix-shift effect from successfully acquiring new, lighter-weight users at the top of the funnel, which is considered a good investment. Underlying spend for tenured, primary users remains healthy and stable. Regarding proposed bank fees, Chime believes it would be minimally impacted due to owning the primary account relationship and could even be a net beneficiary. The impact on the 'MyPay Day One' experiment would be negligible.

Will Nance asked for an explanation of the recent decline in spend volume per customer and inquired about the potential impact of proposed bank data access fees on the economics of Chime's MyPay product.

Answer

CEO Chris Britt and CFO Matt Newcomb clarified that the decline in spend per active member is a result of a mix shift from 'widening the funnel' to include lighter-weight new users, while spending from tenured, primary account holders remains healthy and growing. Regarding data fees, management believes Chime is insulated because it owns the primary account relationship and data, with COO Mark Troughton adding that such a change could even be a net benefit to Chime.

Will Nance from Goldman Sachs asked for clarification on the growth algorithm within the banking business's new sub-segments (payments and banking), specifically how the Total Issuing Solutions (TSYS) business contributes to the payments line and the expected growth drivers across these diverse segments.

Answer

CEO and President Stephanie Ferris stated that while specific sub-segment growth rates are not yet disclosed, the Total Issuing Solutions business is expected to grow consistently with its 2025 rate of approximately 4.5% in 2026. She noted that the legacy FIS organic banking business is growing faster, contributing to the overall accelerated growth in the banking segment.

Will Nance sought clarification on the growth algorithm between the new banking sub-segments (payments and banking), specifically how Total Issuing Solutions (Thesis) contributes and how to project growth drivers across these diverse segments.

Answer

CEO and President Stephanie Ferris stated that while specific sub-segment growth rates are not yet disclosed, Total Issuing Solutions is expected to grow consistent with its 2025 rate of approximately 4.5%. She indicated that the legacy FIS organic banking business is growing faster to achieve the overall guide, expressing satisfaction with its acceleration in 2025 and continuation into 2026.

Will Nance from Goldman Sachs asked for clarification on the drivers behind the increased revenue per transaction, particularly in the context of large enterprise billers, which typically might imply revenue compression. He sought details on contributing verticals and the vertical mix shift embedded in the current outlook. He also followed up on the AI discussion, specifically asking about Paymentus's view on agentic payments in the bill pay space and engagement with related protocols.

Answer

CEO Dushyant Sharma explained that the 11% year-over-year growth in revenue per transaction reflects market disruption and the acquisition of large enterprise customers, some with higher average payment amounts. He noted that utilities and insurance are key contributing verticals. Regarding agentic AI, Dushyant Sharma stated that Paymentus sees it playing a big role in bill payments, with their approach focused on substantive, customer-centric innovation to improve customer experience, rather than just marketing.

Will Nance asked for clarification on the drivers behind the increased revenue per transaction, particularly from large enterprise billers, and which industry verticals are contributing most to higher average transaction sizes. He also inquired about Paymentus's view on agentic payments in the bill pay space, its engagement with related protocols, and the timeline for broader agentic penetration.

Answer

CEO Dushyant Sharma explained that the 11% year-over-year growth in revenue per transaction reflects Paymentus's market disruption and success in acquiring large enterprise customers, some with higher average payment amounts. He noted that utilities and insurance are key verticals contributing to this trend. Regarding agentic AI, Dushyant Sharma stated that it is expected to play a significant role in bill payments, with Paymentus's approach focused on substantive, customer-centric innovation to improve customer experience, rather than just marketing. He indicated that more details would be shared in the future.

Will Nance sought clarification on the absolute levels of digital revenue growth expected for the year, considering the Middle East dynamics, and requested a more precise figure for Intermex's revenue assumptions within the 2026 guidance.

Answer

CFO Matt Cagwin stated that the guide includes a modest improvement in digital revenue growth, driven by acceleration in the Middle East and reinvigorated new customer growth in other markets. He reiterated that Intermex is assumed to close in Q2, with its growth rate commensurate with North America RIA industry growth rates.

Will Nance of Goldman Sachs asked for an absolute level expectation for digital revenue growth over the course of 2026, considering the various contributing factors and the Middle East dynamics. He also requested a more precise figure for the Intermex revenue assumptions included in the 2026 guidance, specifically for the closing period, to help true up financial models.

Answer

CFO Matt Cagwin stated that the guide includes a modest improvement in digital revenue growth, building on two years of mid-single-digit growth, driven by acceleration in the Middle East and reinvigorating new customer growth elsewhere. For Intermex, he indicated a Q2 close, with assumed growth rates commensurate with Western Union's North America or RIA's North America business growth rates, aligning with industry growth rates.

Will Nance inquired about the improving trends in the LACA region, asking if the company is starting to hit easier comparisons and lap previous changes in migration patterns.

Answer

Devin McGranahan (CEO) attributed the better LACA trends to overall market stability and the lapping effects of significant changes from last year, including elections and the closure of the Darién Gap.

Will Nance inquired about the improved trends observed in the LATA (Latin America and the Caribbean) region during the quarter, asking if this was due to easier comparisons from previous migration pattern changes and how these trends might evolve in the near term.

Answer

CEO Devin McGranahan attributed the improvement to overall market stability and the lapping effects of declines from the previous year, which were impacted by elections and events like the Darien Gap closure. He noted that the region is now a year into significant changes in outlook and trajectory.

Will Nance asked for clarification on the drivers of the digital transaction deceleration and inquired about the strategic opportunity in providing on-ramp/off-ramp solutions for third-party stablecoin ecosystems.

Answer

CFO Matt Cagwin clarified that Western Union's digital definition is based on origination channel, noting a slowdown in digital U.S. outbound to Latin America. CEO Devin McGranahan added that payout-to-account transactions also slowed. Regarding stablecoins, McGranahan explained that WU's value is in converting stablecoins to local fiat currency, a difficult process where their global infrastructure excels. He confirmed high interest from third parties and active pilots in South America and Africa.

Will Nance inquired about the transaction margin expectations for 2026, noting that current guidance is below consensus, and asked about the trajectory and path to historical transaction margin ranges given the front-loading impact of provisions.

Answer

CFO Niclas Neglén outlined the 2026 guidance, expecting strong momentum from banking products, continued execution of forward flow programs (including one in Q1), and TMD as a percentage of GMV broadly consistent with Q4 2025. He projected revenue compounding and TMD growth accelerating into the second half of 2026 as fair financing cohorts mature. He also mentioned that the percentage of fair financing production sold would vary commercially, with Q1's transaction being slightly smaller than Q4 2025's $1.6 billion.

Will Nance inquired about Klarna's transaction margin expectations for 2026, noting it appears below current consensus, and asked about the trajectory changes and the path to historically higher transaction margins. He also asked for an update on expected offloading of the fair financing book in the U.S.

Answer

CFO Niclas Neglén outlined 2026 guidance, emphasizing strong momentum from banking products, continued forward flow programs, and transaction margin dollars (TMD) as a percentage of GMV broadly consistent with Q4 2025 initially. He expects revenue compounding and TMD growth to accelerate into the second half of 2026, with adjusted operating income margins exceeding 6.9%. Regarding offloading, he stated no exact guidance but anticipated a Q1 transaction smaller than Q4's $1.6 billion, with sales executed opportunistically throughout the year.

Will Nance asked Incoming CEO Sebastian Gunningham about his main areas of focus to accelerate product innovation, execution, and operational benefits, given Remitly's current growth and expanding margins.

Answer

Incoming CEO Sebastian Gunningham, noting he starts tomorrow, stated that Remitly operates in very large markets (consumer and business) with many subsegments. He believes that increasing velocity in product development will create numerous opportunities in these markets. He expressed excitement about the potential but indicated it's too early for specific strong opinions on his focus areas.

Will Nance asked Sebastian Gunningham about his main areas of focus to accelerate product innovation and execution, considering Remitly's current growth and expanding margins.

Answer

Sebastian Gunningham (CEO, Remitly) stated that he starts as CEO tomorrow and broadly mentioned the large markets (consumer, business, and subsegments) and the importance of having the right product for each. He believes that overall velocity in product development will create significant opportunities in these large markets.

Will Nance asked for more detail on the Remitly Wallet, focusing on the target customer profile, the strategy for cross-selling versus acquiring new customers, and how its unit economics and pricing might alter the business.

Answer

Co-Founder and CEO Matt Oppenheimer explained that the wallet, which will hold both fiat and stablecoins, initially targets Remitly's 8.5 million existing active users. He also highlighted a long-term opportunity to attract new customers, such as recent immigrants who face challenges setting up traditional bank accounts, by offering a comprehensive financial services platform.

Will Nance with Goldman Sachs inquired about the factors driving Global-e's strong Q4 outperformance, specifically asking for a breakdown between stronger same-store sales and FX tailwinds, and how these might normalize in Q1 and Q2 2026. He also asked about other growth drivers, dependencies for the 2026 outlook, and the cadence of large versus small merchant launches across geographies.

Answer

CFO Ofer Koren explained that Q4 and early Q1 GMV strength was due to strong new merchant launches in 2025, robust same-store sales from strong demand and large merchants, and FX tailwinds from a stronger USD in late 2024. He noted that while Q1 2026 would still see some FX tailwinds and higher same-store sales, the guidance assumes normalization for the rest of the year. Co-founder and President Nir Debbi added that the booking pipeline is stronger than in 2025, with new merchant contribution expected to continue at record levels, partly driven by AI-led sales tools and increased demand from global tariff complexity.

Will Nance asked about the drivers of Global-e's Q4 outperformance, specifically seeking a delineation between FX-driven impacts and stronger same-store sales, and inquired about other growth drivers, pipeline dependencies, and the cadence of large versus small merchant launches across geographies for the upcoming year.

Answer

Ofer Koren, CFO, attributed strong GMV to new merchant launches, robust same-store sales (driven by demand and FX tailwinds), and noted that while FX tailwinds continued into Q1, they are expected to normalize later in 2026. Nir Debbi, Co-founder and President, highlighted a strong booking pipeline, the positive impact of AI-led sales tools on lead generation, and increased demand due to global tariff changes.

Will Nance inquired about the traction and long-term opportunity of Global-e's duty drawback offering and other value-added services, as well as the pipeline for new merchants in 2026.

Answer

Nir Debbi, Co-founder and President, Global-e, highlighted the increasing importance of duty drawback due to rising global duty burdens and its role in optimizing merchant cost-effectiveness. He also expressed optimism about the 2026 pipeline, driven by increased complexity in global e-commerce and demand for advanced solutions.

Will Nance asked about the traction of Global-e's duty drawback product, the broader opportunity for value-added services, and the longer-term trajectory of additional product offerings beyond the core service. He also inquired about the pipeline for next year, including the size and geographical distribution of merchants, and overall market trends.

Answer

Nir Debbi, Co-founder and President, Global-e, explained the increased importance of duty drawback due to rising global duty burdens and upcoming de minimis exemption changes, highlighting its role in optimizing merchant cost-effectiveness by reclaiming duties on returned goods. He also expressed optimism about the pipeline for 2026, noting high demand for new services like 3B2C and multilocal solutions, driven by increasing global e-commerce complexity.

Will Nance from Goldman Sachs inquired about the expected impact of U.S. de minimis exemption changes on back-half results, the financial contribution of the ReturnGo acquisition to the 2025 guidance, and the drivers behind increased sales and marketing spending.

Answer

Co-Founder and CEO Amir Schlachet stated that while there is uncertainty, the company does not expect a meaningful impact from de minimis changes, as this is factored into the guidance and mitigation strategies are in place. CFO Ofer Koren detailed that ReturnGo is expected to add approximately $1 million in revenue with a negative $1 million impact on adjusted EBITDA in 2025, becoming neutral by 2026. Koren also explained that the rise in S&M spending is due to higher GMV-related rev-share with Shopify and strategic investments in hiring more sales personnel.

Will Nance inquired about the strong net adds performance in Q4 2025 and the expectation for increased net adds in 2026. He asked about the mix of core versus new verticals and how to gauge success in new parts of the business. He also asked about AI disruption in software, Toast's competitive moats, and potential threats from new entrants.

Answer

CEO Aman Narang stated that net adds were up year-over-year in every quarter of 2025, with Q4 accelerating. He expects a similar pattern in 2026, with core net adds in a similar range and new TAMs driving further growth due to increased go-to-market capacity and early testing. Regarding AI, Aman Narang emphasized Toast's comprehensive platform (software, hardware, fintech, network, partners) and its role as an 'outsourced CIO.' He views AI as an opportunity, with Toast IQ acting as a copilot for analysis, automation, and backend changes, and a long-term vision for AI agents to manage functions like marketing, payroll, and bookkeeping, leveraging Toast's proprietary data.

Will Nance asked about the strong net adds in Q4 2025 and the expectation for increased net adds in 2026, specifically inquiring about the anticipated mix between core and new verticals and how to gauge success in new business areas. He also addressed concerns about AI disruption and software commoditization, asking Aman Narang to elaborate on Toast's business moats and why new entrants leveraging AI technology are not perceived as a significant threat.

Answer

CEO Aman Narang highlighted the strong net add performance in 2025, with growth accelerating in Q4. He expects a similar pattern in 2026, with core net adds remaining in a similar range to 2025 and new TAMs driving further growth due to increased go-to-market capacity and early testing beyond food and beverage retail. Regarding AI, he emphasized Toast's position as a comprehensive vertical platform encompassing software, hardware, fintech, and a partner ecosystem, simplifying technology needs for restaurateurs. He views AI as an opportunity to enhance the platform, citing Toast IQ's role as a copilot for automating workflows, data analysis, and backend changes, with a long-term vision for AI agents to manage functions like marketing, payroll, and bookkeeping, leveraging Toast's proprietary data.

Will Nance from Goldman Sachs asked about the sustainability of Toast's market share gains in the core SMB business amidst heightened competition, inquiring about competitive concerns, the reported increase in win rates against peers, and the timeline for doubling market share.

Answer

CEO Aman Narang highlighted the team's strong Q3 performance and execution, noting increased net adds and year-over-year win rates against all major competitors in both QSR and FSR. He attributed this success to the go-to-market team's ability to maximize location growth and the core platform's continuous customer-focused innovation, such as Toast IQ.

Will Nance inquired about competitive concerns, the sustainability of Toast's recent market share gains, and the projected timeline to achieve the goal of doubling market share in the core business, given increased competitor focus.

Answer

CEO Aman Narang highlighted the team's strong Q3 performance and consistent year-over-year net adds. He stated that win rates are up against all major competitors in both QSR and FSR, attributing this to strong go-to-market execution and the purpose-built, innovative core platform. He noted that core net adds are in the same range as last year, indicating sustained market share gains.

Will Nance inquired about the new disclosure of retail ARPU exceeding $10,000, asking for context on its composition and the product roadmap for the vertical. He also asked about the macroeconomic drivers of GPV per location trends.

Answer

CEO Aman Narang explained that the rapid growth in retail ARPU validates the market opportunity and justifies further investment in sales and product, particularly in specialized inventory tools. Regarding GPV, he noted that overall GPV per location was down 1%, remaining in a narrow band, and that while the retail segment has higher GPV, it is still a small part of the overall mix.

Will Nance from Goldman Sachs inquired about the enterprise segment, specifically when the PayFac growth over issues would lap and the quantifiable magnitude of its impact on both revenue and transactions.

Answer

Mike Lyons, CEO of Fiserv, stated that Q4 would be the last quarter discussing the enterprise PayFac client transition, which caused an approximate 6-point differential in Q4 revenue. He explained that without this noise, the adjusted revenue growth would have been closer to 4%, aligning with the 6% transaction growth, and that mid-single-digit transaction growth is the expected go-forward rate for the business.

Will Nance inquired about the enterprise segment, specifically when the PayFac grow-over issues would lap and if the magnitude of their impact on both revenue and transactions could be quantified.

Answer

CFO Paul Todd stated that Q4 2025 would be the last quarter discussing the PayFac client transition, which caused a 6-point differential in enterprise adjusted revenue. He expects mid-single-digit transaction growth for the enterprise business going forward, without the PayFac noise.

Will Nance asked for insights into the puts and takes of the RLTC margin, its trajectory, and the impact of gain on sale, 0% loans, and favorable funding market tailwinds.

Answer

Rob O'Hare, CFO, confirmed expectations for RLTC take rates slightly above 4% for Q3 and Q4. He highlighted benefits from lower transaction costs, particularly in ABS market funding, and noted a slight year-over-year softening in revenue take rates due to increased 0% loan mix.

Will Nance sought to understand the puts and takes in the RLTC margin over the last year, including structural tailwinds and favorable funding markets, and asked about the expected trajectory of margins from here, particularly regarding the 4% range.

Answer

Rob O'Hare, CFO of Affirm Holdings, confirmed expectations for RLTC take rates slightly above 4% for Q3 and Q4. He attributed benefits to lower transaction costs, especially funding costs in the ABS market, and noted a slight year-over-year softening in revenue take rates due to increased 0% mix.

Will Nance of Goldman Sachs inquired about the funding environment, noting the wide-open capital markets and asking about the potential risk of credit issues arising from an oversupply of funding to lower-quality competitors.

Answer

COO Michael Linford explained that Affirm mitigates this risk by being highly selective and partnering with 'blue chip' asset managers for the long term, rather than chasing the lowest bid. He stated that their focus on partnership quality and long-term strategy insulates them from the behavior of competitors with different funding approaches.

Will Nance of Goldman Sachs inquired about Visa's updated perspective on the regulatory environment, specifically addressing the risks posed by the CCCA (Credit Card Competition Act) to the business and the likelihood of its passage, based on recent conversations on Capitol Hill.

Answer

Ryan McInerney, Visa's Chief Executive Officer, stated that Visa is actively engaged with elected representatives to educate them on the harmful and unnecessary impacts of legislation like the CCCA. He emphasized the intense competitive environment in payments and the well-functioning market, arguing against government intervention. McInerney also highlighted the potential negative consequences for consumers and small businesses, including reduced credit access, eliminated rewards, fewer card options, and weaker security.

Will Nance asked for an updated perspective on the regulatory environment, specifically addressing the risks posed by the CCCA (Credit Card Competition Act) to Visa's business and the likelihood of its passage based on recent conversations on Capitol Hill.

Answer

Ryan McInerney, Visa's Chief Executive Officer, stated that Visa is actively engaged on Capitol Hill, educating elected representatives on the potential impacts of various policies. He reiterated Visa's view that the CCCA is harmful and unnecessary, citing the intense competitive environment and the well-functioning market. Mr. McInerney emphasized the negative consequences of such legislation, including reduced access to credit, elimination of rewards, fewer credit card options, and weaker security protections.

Will Nance of Goldman Sachs asked about the role of stablecoins in the remittance space, questioning how they would function in terms of pricing and settlement, and whether the value created would accrue to service providers or consumers.

Answer

CEO Ryan McInerney explained that stablecoins can enable faster cross-border transactions, especially in corridors reliant on slower local banking infrastructure. He noted that Visa has been testing corridors and has a good sense of where stablecoins can provide faster and cheaper money movement. He believes the value created will ultimately accrue to both end-users and Visa's clients, seeing real product-market fit for stablecoins in remittances.

Will Nance from Goldman Sachs asked about the specific role of stablecoins in remittances, questioning whether they impact pricing or settlement and if the resulting value would benefit consumers or service providers.

Answer

CEO Ryan McInerney explained that stablecoins can enable faster and cheaper cross-border transactions in certain corridors where traditional banking infrastructure is slow. He stated that based on testing, Visa believes the value created—through speed and cost savings—will accrue to both end-users and Visa's clients, ultimately helping to accelerate the digitization of payment flows.

Will Nance of Goldman Sachs Group, Inc. asked about the role of stablecoins in the remittance market, specifically how they affect pricing and settlement, and whether the resulting value would benefit service providers or consumers.

Answer

CEO Ryan McInerney explained that stablecoins can enable faster and cheaper cross-border transactions in certain corridors by bypassing slower local banking infrastructure. He stated that Visa has been testing these use cases and believes the value created will likely be shared between end-users and clients, ultimately helping to accelerate Visa's growth in remittances.

Will Nance from Goldman Sachs inquired about the Capital One renegotiation, seeking details on the agreement's impact on existing Capital One cards, the expected stability of Mastercard's share of Capital One credit volumes, and the duration of the partnership extension.

Answer

Michael Miebach, CEO of Mastercard, expressed excitement about extending the credit portfolio agreement with Capital One and highlighted Capital One's increased use of Mastercard's services across its business, signaling the network's value. Sachin Mehra, CFO, reiterated the excitement about the new agreement for new credit issuance, emphasizing the value Capital One sees in Mastercard's payment network and value-added services.

Will Nance asked about the details of the Capital One renegotiation, specifically regarding the expected stability of Mastercard's share of Capital One credit volumes and the duration of the extension, given Capital One's stated interest in moving volumes to Discover.

Answer

Michael Miebach (CEO) expressed excitement about extending the credit portfolio agreement with Capital One and highlighted Capital One's continued use of Mastercard's services as a strong signal of the network's value. He emphasized ongoing investments in the Mastercard network and acceptance to maintain a differentiated proposition. Sachin Mehra (CFO) added that the agreement primarily relates to new credit issuance, reflecting the value Capital One sees in Mastercard's payment network and value-added services.

Will Nance asked about the potential impact of large banks imposing fees for consumer data access on Mastercard's Finicity business and the broader value proposition for consumers.

Answer

CEO Michael Miebach responded that while Mastercard lacks full visibility into the banks' specific plans, the company maintains its fundamental belief in the importance of consumer-consented data sharing for open finance. He acknowledged that the economic models are still evolving but stressed that enabling consumers to use their data for better services remains a critical and winning proposition over time.

Will Nance inquired about the trajectory of gross margins into next year, considering recent model improvements and the offsetting impact of the money transmitter category. He also asked for more details on the one-time expense impact mentioned in the third-quarter script.

Answer

CEO Eido Gal confirmed that ramping new categories like money transfer and newer geographies acted as a headwind in the first half, but modeling improvements helped performance across the portfolio, anticipating flow-through into Q4 and beyond, alongside continued headwinds from new regions/categories. CFO Aglika Dotcheva clarified that the one-time expense impact in Q3 included positive adjustments related to payroll (vacation accrual, reserve duties for the Israeli office) and movements of some events, noting that Q4 operating expenses are expected to be around $39 million, representing a more typical run rate.

Will Nance inquired about the trajectory of gross margins into next year, specifically how recent model improvements leading to cohort outperformance might be balanced against potential offsets from the money transmitter category. He also asked Aglika Dotcheva for more details on the one-time expense impact mentioned in Q3.

Answer

Eido Gal, Co-founder and CEO, confirmed that ramping new categories like money transfer initially presented a headwind in H1, but modeling improvements helped performance across the portfolio, anticipating continued flow-through into Q4 and beyond, alongside new headwinds from newer regions/categories. Aglika Dotcheva, CFO, explained that Q3's lower non-GAAP operating expenses were due to positive impacts from payroll adjustments (vacation accrual, reserve duties for Israeli office) and event movements, with Q4 expected to return to a run rate of approximately $39 million.

Will Nance requested a deeper dive into performance trends by vertical, specifically asking about the basis for commentary on same-store sales in the back half of the year. He also asked about the drivers of OpEx management and when operating expenses might need to grow again.

Answer

CFO Aggie Doceva detailed that travel and payments continued to perform strongly, while the tickets category softened in Q2 after explosive growth in 2024, facing tougher comps in the second half. She noted fashion has seen some stability despite negative same-store sales. On OpEx, Doceva attributed the control to offshoring activities and timing of backfills, guiding to a run rate of approximately $38.5 million for the back half of the year.

Will Nance (Goldman Sachs & Co. LLC) asked for quantification of the run-rate financial impacts and P&L geography related to the Blue Owl offloading. He also inquired if Buy Now, Pay Later volumes exhibit a different geographical skew compared to the overall branded volumes (40% U.S., 60% international) and sought color on regional adoption and penetration.

Answer

CEO Alex Chriss clarified that less than 30% of Buy Now, Pay Later originations are U.S.-based, indicating a global business with expansion into new geographies like Canada and in-store options. He highlighted BNPL's role in driving customer engagement and TPV uplift, emphasizing PayPal's strategy to offer flexible payment options across all commerce channels. CFO Jamie Miller noted that the Blue Owl offloading had a small, net-neutral impact on Q3 operating income and a minor effect on the 2026 OpEx run rate.

Will Nance inquired about the financial impacts of the Blue Owl offloading on BNPL volumes, asking for quantification and P&L geography. He also sought clarification on whether BNPL volumes skew differently geographically compared to the 40% U.S./60% international split for branded numbers, and details on adoption and penetration trends.

Answer

CEO Alex Chriss stated that less than 30% of BNPL originations are currently in the U.S., indicating a global business. He highlighted the expansion of BNPL into upstream presentment and omnichannel (in-store) offerings, noting the flywheel effect where BNPL use leads to a 35% uplift in overall TPV engagement. Alex Chriss emphasized meeting customers where and how they want to pay. CFO Jamie Miller mentioned a small, net-neutral impact from Blue Owl in Q3 on operating income, with a small increase to 2026 OpEx run rate.

Will Nance from Goldman Sachs inquired about the company's updated capital allocation priorities given the improved free cash flow outlook. He also asked for an update on the asset review and internal efficiency initiatives since Greg Adelson became CEO.

Answer

CFO & Treasurer Mimi Carsley stated that with zero debt and strong free cash flow conversion, the company has more flexibility and intends to increase share repurchases while remaining open to M&A. President & CEO Greg Adelson confirmed that asset review remains a priority, noting they have announced the end-of-life for nine products, including NetTeller, and are still evaluating potential asset sales.

Will Nance sought to understand the path back to 20% ARR growth, asking about the puts and takes for acceleration and the rationale behind pausing existing TASK rollouts to pursue new, larger deals.

Answer

CEO Savneet Singh explained that achieving 20% growth is challenging due to a lower starting ARR base from a slow H1, slower-than-expected rollouts of contracted revenue, and the strategic decision to pause TASK revenue. He clarified the TASK pause was due to development capacity constraints, as the team needed to focus resources on configuring the product for major global Tier 1 prospects, a high-ROI trade-off. CFO Bryan Menar added that lapping the slower H1 2025 will mathematically help the growth rate in 2026.

Will Nance from Goldman Sachs requested an update on the progress of cost-saving initiatives and asked about the specifics of the Buffalo Wild Wings renewal, including whether it was a competitive process.

Answer

CFO Brian Webb-Walsh detailed the $100 million cost program, noting 60% of the savings will be realized in the second half. Restaurants President Benny Tadele and CEO James Kelly explained the Buffalo Wild Wings win was driven by an improved sales team, a strong product roadmap, and a renewed focus on executive engagement with key enterprise clients post-spin.

Will Nance from Goldman Sachs asked for clarification on the B2B volume growth guidance, particularly the dynamics in the China B2B corridor, and requested a breakdown of the drivers behind the strong take rate expansion.

Answer

CFO Bea Ordonez clarified that the volatility in the smaller China B2B goods business can distort overall B2B volume growth, while the larger 'rest of world' services business remains very strong. She attributed the nine-basis-point take rate expansion to a mix of factors, including strong growth in higher-yield geographies, increased card adoption, pricing power, and the acquisition of the workforce management business, declining to decouple the specific impacts.

Will Nance of Goldman Sachs Group, Inc. questioned Fiserv's confidence in its 2026 Clover revenue target, noting that Street estimates are lower, and asked for a reasonable long-term growth rate considering volume, VAS, and potentially non-recurring hardware sales.

Answer

Robert Hau, CFO, confirmed Fiserv is on track for its $3.5 billion Clover revenue target in 2025 but did not update 2026 guidance. He disagreed that hardware sales are non-recurring, stating they are a core, profitable part of the business operating system and have been a consistent percentage of Clover revenue. Mike Lyons, CEO, added that the strategy is to build a comprehensive business operating system, not just a POS device, for a massive and underpenetrated global market.

Will Nance from Goldman Sachs Group, Inc. asked about Fiserv's confidence in its 2026 Clover revenue target, noting that Street estimates are currently below it, and questioned the sustainability of hardware sales as a growth driver.

Answer

CFO Robert Hau confirmed Fiserv is on track for its $3.5B Clover revenue goal in 2025 but did not update 2026 guidance. He asserted that current growth initiatives in vertical, horizontal, and international expansion position them well for future targets. Hau disagreed that hardware sales would not recur, stating that hardware is a profitable and core part of the business operating system, consistently representing a mid-teens percentage of Clover revenue. CEO Mike Lyons added that the focus is on building a global business operating platform with a vast, underpenetrated TAM.

Asked for more details on the factors affecting Cash App's monthly active user count, including enhancements to the ecosystem and a strategic pullback in marketing.

Answer

Amrita Ahuja explained that the 'enhancements' refer to changes in the onboarding flow to better understand customers and promote a healthy ecosystem, which has not negatively impacted engagement, as inflows per active grew 10% YoY. The marketing spend was pulled back in the first half to refine the 'bank the base' strategy and is now set to ramp up in the second half. She highlighted significant room for user growth, particularly within the Gen Z and millennial demographics.

Will Nance from Goldman Sachs asked if the company could still achieve its revenue guidance if interest rates fall in line with the forward curve, which implies more cuts than the company's base assumption.

Answer

CFO Steve Boyle acknowledged that if two or three rate cuts were to occur, revenues would likely be towards the lower end of the guided range, but he affirmed that the range remains appropriate. President & CEO Tim Hockey added that conservative assumptions for their new growth initiatives could provide a potential offset to the lower rate environment.

Will Nance asked about the outlook for BDA yields in a flat curve environment and for a comparison of institutional versus retail client behavior during the recent market selloff.

Answer

President and CEO Tim Hockey stated that BDA yields should continue to see pickups as maturing assets are reinvested at higher rates, despite the flat curve. CFO Steve Boyle and Hockey noted that retail clients were slightly more positive on equities during the selloff, while institutional clients repositioned more quickly. Hockey added that money market fund flows were not unusually pronounced.