PayPal (PYPL) 7 Feb 242023 Q4 Earnings call transcript

Good afternoon. My name is Sarah, and I will be your conference operator today. At this time, I would like to welcome everyone to PayPal Holdings Earnings Conference Call for the Fourth Quarter 2023. [Operator Instructions]

I would now like to introduce your host for today's call, Ryan Wallace, Head of Investor Relations. ahead. go Please

thank Earnings and joining Fourth PayPal's Good Call. you XXXX Conference Quarter afternoon, for

Joining Alex today Miller, me is CFO. and and Jamie CEO; Chriss, our President

conference to We're to slide call some will discussing are Investor Both accompany our call our and is on non-GAAP website. our the providing measures. presentation also presentation refer commentary. Relations a available company's webcast. being we This In performance,

in the reconciliation directly of these presentation to call. measures conference most measures find non-GAAP comparable the GAAP can the this accompanying You

Our based remarks and forecasts and that today will include risks forward-looking and on statements are uncertainties. involve expectations, our current assumptions

Our actual these results from statements. differ may materially

find Form on our could Form the report other can on available You results XX-Q risks, SEC and and recent information factors affect report quarterly filed annual uncertainties XX-K that with on and in more Investor about our our website. Relations most

as any let this date, this All today's we of in the turn me And disclaim expressly Alex. information. over call presentation information to update to with is obligation that,

Thank in of the to financial we've joining able It's results accomplish will this afternoon. with short a first everyone a delivering I'm been you you, productive and us been what X today. discuss to for time months. Ryan, while period such thank pleased we solid

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performance than In payment X% in discipline, better continued fourth was expenses year-over-year. the $XXX growth in by X% expense margin revenue delivered we we on billion expected strong total non-transaction-related reducing and QX, dollar volume. Transaction quarter,

our Taken share share together year-over-year. per the XX% increased quarter, with $XXX earnings repurchases non-GAAP in in million

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company growth to ahead. is and reshape expansion in profitable goal the to clear accelerate years margin Our the

guidance. us will with more will quickly and Prioritization allowing Jamie call, to better you our take in the through move full key results. be Later year

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aimed authentication, major To and start, presentment, more these we've increasing creating with the our in password-less redesigned of across our drop our out efforts friction PayPal allowing with to combined branded and checkout speed rate result shopper at goal flows. an a in flows new conversion When XX% checkout additional for all a consistency simplicity minimizing merchants. in of fast. selection check experience, optimizing as can and driving to better twice this Improvements latency, up higher are like

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through new As available partner developer portal. to we intend progresses, the channels, paths drive adoption brand integration no-code our capabilities marketing like additional developer-friendly and and through targeted low- year

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we out portfolio new will loop rolling experiences this that drive our an The and higher are higher create awareness products engagement the offer and year we will of checkout over various time. app also drive adoption of

PayPal using give of fourth Let had adoption. non-rewards active In XX someone we examples the was higher account average significant increased accounts higher about opportunity accounts and revenue where Xx rewards you quarter, than average U.S., Mastercard per to who revenue Cashback account. of PayPal average we me the the have double In X almost checkout-only have that over account accounts. drive engagement the of million per Rewards. that adopts The is

in but these of X% app higher to creating their are improved value only for wallet. of a only paths frictionless drive products. Increasing not of experience improvement Today, Redesigning that in engagement drive onboarding products adoption our and active that of our us. customers richer penetration tangible customer ways card accounts about these plan for will we lifetime and have types

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this of customers to debit card the are driving a than only Venmo we're that In Venmo about Venmo drive our most debit the debit card. Venmo of X% accounts Xx and our holders innovation, customer, incremental active among engaged focused PXP have today. a addition adoption of on card revenue

there for a focus opportunity So there on. significant us is to

consolidated already year, services progress this will Finally, many operating We've demonstrate platforms. meaningful towards we efficiently. into technology disparate more common

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to will make converging business. example, difference reports, reporting how accurate which system, so For their consistent merchant will run merchants we're our and a get that they huge single in a

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We will deliver best company moving for this each at the to the lightning with behind customers be weight and initiatives experiences year. these the of our speed of possible

the for wrap the quarter in over store the through To to pleased team we innovation year call full our excited of fourth and an our have am enormous I'll and all amid ahead to that, take year. you up, delivered results quarter for hand execution our quarter Jamie fourth amount the With customers. the change. and throughout with I the about results I'm that the

Thanks, Alex. Good afternoon.

very PayPal. say joined me let have First, to that excited I'm

leadership energized our on customers, PayPal's potential. and team incredibly our together to am to full team new deliver is see come I laser-focused Our

our Before several results, discuss in materials our I financial today. you'll things different notice

press of and use First, better a we've consumption release tabular more format redesigned designed information. allow standardized to our ease of in

presentation additional We supplemental our into metrics greater provide in intended also our transparency to investor have business. included

evaluate to these will We time. continue over other and changes

I'll In and revenue reported growth we performance. summary with the quarter, a our fourth X% on financial spot currency-neutral a basis. start of

the Non-GAAP better-than-expected quarter grew on dollars per basis. interest the For balances. the representing and share for Higher and discipline were the currency-neutral full a earnings driven and the X% and margin flat full year-over-year by were declined year. spot which in quarter revenue earnings ongoing $X.XX year-over-year on dollars, in XX% growth. share year, from benefited margin in X% quarter, expense at customer checkout, per transaction fourth Braintree were Transaction branded X%

XX%. non-GAAP We ended the of per year $X.XX up earnings with full share,

benefited the share buybacks. of year lower interest operating full results from rate environment expenses, Our impact the higher and

monthly key some I'll support walk Pacific results. markets, accounts of churn these million million you Now accounts. developed last accounts less XXX We Throughout Latin indicated active year we ongoing America predominantly active Asia that through the ended region. operating unengaged we that XXX and metrics in in with year, expected and the

accounts. account in More This XX-month X%. seeing primary growth and accounts, the was the accounts. our this mentioned, rate figure, which PSP were If full up monthly trailing per is account, primarily of in number, up X% encouraged actives is accounts of base active XX%. our We just for higher active were was driven base the total total we from we processing, course also of XX.X churn that unengaged both by than by that the of I monthly exclude the active of our levels activity active the we're our but year-over-year core and reduction among fourth had XXXX. active grew quarter of engaged transactions accounts Braintree counts Part quarter, of in per driver stable. over XX% remain Transactions active the a year, modest which growth is

a includes currency-neutral XX and accounts historical billion, transactions our TPV, payment in Page XX% active additional spot investor our information growth XX% on active On basis. growth and trends excluding in the quarter, account, volume growth per presentation $XXX.X or of at in fourth processing. representing we PSP saw volume, total on monthly

branded Asia. This Europe grew checkout TPV improvement XX%, primarily and as driven strength XX% Venmo. on a growth and driven primarily by by basis, grew well International TPV was Braintree currency-neutral in as U.S. in

XX% $X.X For and a trillion, XX% was at basis. year, the increasing full TPV on currency-neutral spot

volumes volume branded X% X%. checkout to basis, currency-neutral grew bringing checkout branded on year a global by growth full quarter fourth approximately PayPal's

the seen consistent Braintree. We continues processing driven grew a for in performance to checkout start by branded and quarter, through growth the year in January. solid PSP with global The have volumes make merchants. product to XX% team enhancements growth ongoing

on processes also putting and as renewal we overall are focus go-to-market growth. We profitable discipline our into greater

a With and from to increased XX% X%. revenue to In billion, $X.X spot driven by basis quarter revenue I at on XX% spot spot on X% Transaction currency-neutral quarter, Braintree the earlier, basis, the quarter. third and fourth in and the $X basis respect increased to a U.S. grew revenue accelerating X% revenue billion. International as fourth grew branded a on revenue, currency-neutral noted checkout.

TPV, saw to Asia. ongoing we improvements Similar Europe in strength in and

For the quarter on the services revenue full and year, X% at revenue currency-neutral Other basis to basis. X% on grew spot spot a U.S. international revenue grew a value-added increased X% million. X% in $XXX and

XX% million. For $XXX services the approximately value-added by other full grew revenue year, or

by customer was For increased growth both on interest driven entirely quarter this full the almost year, the balances. and stored income

declined quarter. flat currency was of this as points to hedges, Transaction Approximately fees. basis from are gains international which foreign revenue foreign by decline X driven transaction X fourth rate XX lower the X.XX% take recorded in and factors: exchange bps

fourth with to Transaction XX shift mix year flat large margin the down full merchants of year by were in was addition, quarter our period rate. was take percentage year-over-year In for take merchant improvement prior by compared a basis have absence the X.X% impact contractual compensation X.XX%, combination slight approximate Transaction and and branded of rate checkout Braintree. X in volumes to on the branded a higher year-over-year. continued from dollars quarter. point decline the points checkout in This the also driven a third

the a interest and of points growth year of basis fourth hedge absence portfolio, including X in largest contributors higher the customer year. primarily Fourth by branded was as migrating increase period favorable same of transaction period and PayPal of This driven quarter of the a income rate last compared growth volume at consolidating than the of gains in mix as in prior geographic balances volumes dollars well PayPal transaction of points, were TPV services. stored growth Venmo. in payment impact and growth Braintree other to The quarter. on the basis margin offset to the checkout parts was offset came the declines expense partially as by benefits by and legacy This XX was rate

of Full basis was the quarter of as a the losses as of Transaction up year and points. last points year from loss X rate for transaction quarter points points or the expense basis the for as basis as XX% TPV XX was X rate fourth points quarter, the TPV year. point for for a rate a basis X rate X million year-over-year down of were basis and full X Credit full $XXX TPV TPV, year. basis a

have We within originations In managing and European declined continue X% we to expenses as Now, our manage prudent portfolio portfolio. credit loans active taken Pay our fourth overall tightening structure. non-transaction-related a Later quarter, PayPal and risk, our externalizing cost to our operating business approach Buy actively the

declined expenses For full the same the XX%. year,

quarter the Non-GAAP XX% for operating income XX% $X.X by full grew to to in and year billion. the billion nearly $X.X

of of partly a to from new as the originated Later includes This the for flow held non-GAAP impact in basis margin basis sale better benefit European $X.X full points Now, XX.X% for each operating and Buy to KKR, increased in quarter cash billion quarter. Our our free Pay the leverage in the by points to XXX due increased period. expense operating XX sale. generated in fourth loans year XX.X% the offset net $X.X billion to PayPal receivables

the share flow million the to free impact, $X.X flow. fourth for changes we and bringing in billion of repurchases nearly working a taxes the $XX.X in cash quarter We this year. free capital negative adjusted cash quarter of billion. share quarter than equivalents billion. Higher-than-expected completed cash had $XXX for investments full billion In full approximately we Adjusting more cash on and in $X impact generated and with and cash, $XXX year the quarter, debt in ended $XX.X repurchases, million

guidance, guidance Before updates to X and turning to to XXXX share. our first quarter approach I have our

upcoming being, to providing we annual move intend provide revenue guidance First, quarter. from for away the guidance for time and the instead

and Given the revenue X year updates believe is as company, the considerable provide underway guide changes it quarter we at ahead to the progresses. prudent

XXXX and with non-GAAP Second, the This impact the guidance stock-based first our we're providing today our excludes compensation of from that consistent historical is results. quarter approach.

in results. stock-based the in quarter, will include first non-GAAP we expense compensation our Beginning

in compensation need integral already and we'll earnings, will one We discipline that of transparently. directly Including believe part to accountability our and measures and accordingly introduce expense stock-based update more non-GAAP is at reporting manage and investors our Stock-based own business. will performance compensation an more way time. the that our and align structure to cost many guidance our we our that evaluate we

first X.X% approximately for of we basis. quarter, on revenue currency-neutral spot terms the outlook to at expect In and our X% increase a

at plan, per our the be percentage. have with share critical. we're for year as addition, will of are we quarter to we a XXXX we grow year the in one expect to With changes In be first all earnings non-GAAP mid-single-digit and making, business success an said financial previously, respect execution long-term will full the positioning

rate we some For full year, of the year. level move as declines environment a planning macroeconomic interest the consistent are through for relatively we with

We and consistent. activity overall consumer that relatively also remain spending will levels assume

XXXX product of margin launch, We execution these enhancements or $X.XX. year flat expect of to see in our line roughly we Underpinning are begin earlier. to discussed already full with non-GAAP Alex we but year innovation the and Many impact. require dollars. be before EPS throughout will expect outlook, prior pilot transaction roughly in our EPS year

includes minimal initiatives. guidance Our impact from these

increase non-transaction We operating expect a single-digit low expense. in

actions our to time, reduce announced efficiencies investing to teams product the week last platform same As engineering we and drive Alex while continued growth. mentioned, drive in at to cost more

be mindful factors are that X of revenue. will services our There other impact to value-added

expect environment, in be less rate are we that will tailwind while benefit the XXXX. higher significant much from still First, this we interest seeing

to and credit exposure. approach we our prudent continue an take Second, managing active to

will year. impact after for lower carrying we revenue we planning our are that receivables rates, credit which sheet for off-balance originations, share tightening We the And earn. last originations ongoing normalization are loss and

approximately XXXX perspective, we maintaining We policy our of From opportunities, to Absent investment-grade credit inorganic we financial flow $X growth expect remain share allocating cash XX% to expect be a continue to buybacks. billion. XX% for rating. cash approximately to an committed to free flow free

However, That strong to in over billion position concludes prepared the for we remarks. back Q&A. now are as least my hand we share it the to our in operator planning buybacks $X given at year, begin cash enter currently XXXX. I'll

[Operator Instructions] Your of question JPMorgan. the first comes from of line Tien-Tsin Huang

some drivers Appreciate growth us to that details wanted to there, on Can transaction accelerate to here. you and outlook that get it, are of a be give margin dollar maybe obviously. bit key you get more, all of the to the transaction dig about I the little just the the in in flat. available for questions dollars maybe margin a high-level on beyond I to levers XXXX. lot thoughts

I'd would love takes us. underline and you the that So puts hear to for

how First, through. with much we've there change me let start is recognizing just gone that

You heard have innovation. We've team. it in accelerated my prepared pace remarks, a but the we executive essentially of leadership brand-new

that very innovation away a focus days. saw was where shift, of ago, have of day. we our that in point And new are taken profitable growth accelerating organization, getting the I'm or experience that's now and and every couple years XX done are weeks mindset could at for something we first-look even proud you this the a is on grinding months really The team,

unpack me let components that And so margin with said, of growth. transaction the

The is there's X levers there. it way I about think

just And in. for the out, well to lever That it's for new be something for that is mobile continue that us. experience merchants -- significant put And a with for proven The branded we've rolled to there. has I some first get This the app if consumers around as us both we for of in just consumers, we their one underwhelming. new a It's allows see the be improve we under-invested them expect innovations is experience is to I our improvement innovations And take that able as the really through honest, us. that to experience with better. the experience out, experience. that, been a to one specifically that

With we market The the This looking is the of something have seeing significantly for merchants. I second our is looking area that out around one our products are We're merchants highest the processing. we there, have now, and in the and in. best believe, that an invested really, it's adopt. unbranded Fastlane to conversion rates for

have to looking conversations We small customers into and also us for the margin our really third to to services. actually new the of is And price such a and that it product. international move really I'd have allows different business. with opportunities value-added And higher consider bucket areas are growth as value what

This ensure is to that really or the our flows need underperforming were and our consumers Mastercard, when we've that are Pay not of attaching Later improving with Cashback combination flows products our a whether that we're optimized we Now, it Buy to it's these comes to attach.

well monetize all and as rolled we out, advanced our as are These consumers. ways offerings smart can And the connection between then our that improve receipts. you some of the and platform we saw offerings new merchants that

ways So I about that's different components. that the think

have we're in really, viewing transaction on limited on I initiatives steady specific we largely that first, on the I'll that 'XX has puts Tien-Tsin, talking on what guidance. in our And about, both the earlier included impact been you us pull proportions. year, heard But you margin back, Yes. jump trends dollars. takes that slightly if maybe different And saw say Alex in and to last

Checkout being to our Branded So margin profile. PSP contributor in a improvement growth, healthy

happening mentioned last And as much and on we expect normalization do to that be is to I what in script work. income smaller the should in saw revenue, our We expect the rate year. starting interest customer call, to we credit that than I really, on loss but benefit headwinds our balances, think, with some pre-pandemic some trend levels which as

in will This we be areas times platforms. push deprecate there that lower We'll extent to offsetting in that our will we to lines product see do rev TM. year. drag our products share on But of we also the from really some consolidation, aggregate just where to customers platform space. a then much partnerships are see a And in than that, last lower be new really smaller

of see way we Good should is as you be last other few And that there'll as offset of we've some we got years. know, perhaps couple the drop-off. And as PPCP, heavily work through do not that, have we invested have as some we that, a there. example our products in

Your comes with the Bank next America. of Jason line of question Kupferberg from

on in growth I a bit. wanted to hone branded TPV

monthly slowed observations And 'XX? Was hoping X for the you're in full fourth think quarter what I could of had season. TPV branded on us through to comments the from market might holiday have the on in take it then some share quarter intra-quarter planning some by first you you point and X%. growth any trends just year general maybe there,

Thanks, Jason.

Let and me on. Jamie to wants pile see the if I'll set context

Our into branded been to that the we're be there. consistent. out was minimal for looking pretty include It's as we about, year. going innovations of put that X% it what next well. we're And consistent talked And doesn't performance includes new the as for checkout year, we've expecting aspects or

be this for the comes about ways some just talk checkout of levers to a about or branded the when think is going the organization. I that obviously it focus to me innovations big because Let new accelerating

into better consumers proposition really branded that value for rewards, we mobile experience. This improved as latency the an checkout leaning we've a that reduces well really our is experience have first consumers. have and why The leaning so us is you on improve see our in that ensuring to got

second when all the to acceleration opportunity Second, merchants only of comes our the the we but improves where have Fastlane can not customers a our show see branded a for the be made. us getting experience reasons at a into unbranded experience, with or they allows of them purchase different later to XX% date, and the why reward them back engagement that through that a come Fastlane back should using it customers PayPal bring a they

these, just branded now So that that to focus examples of think again, we're really us are a that allow I innovations experience. into leaning on couple of

of Darrin with Your next question Wolfe comes from the Peller line Research.

mean profit profit transaction of be these year. some are growth to I think Alex, train to of this you're of in gross mean Alex, thoughts -- initiatives your But bit Jamie, on of thought. not incorporating up a point, this mentioning I these to I to new for follow about just growth. beneficial most your these you're know when we some going

bit experience, some on what KPI And timing. measure actual expect measure how the in or guess you'd I gross checkout a so whether more initiatives you as unbranded we'd well year, to success, do And love traction around what we you more little a would branded it's should look when I hear profit not want for? bit PPCP investors us, the little re-acceleration? If to this as guess

Well, look, Yes. be And you, thank me clear. let Darrin.

before into We we board put the putting us guidance the the until for day. points put grinding in it to We are are teams the not expectations said, That think we the every this see on just on prudent it's guidance. execution. into single

We merchants are with having our introducing conversations and them.

And are As for conversations I I the that has these the now quite from as improvements in call, well market, tell having on different are than as merchants innovations focused that is we've will in demand reaction past. that starting now. the encouraging the the on and right been the driving we're we both we're There you, demand had mentioned are innovations.

working on as know, will board on we just are as we want you you I adjust guidance start our and to to update see needed. So this, the we now points and

look and all your first I that Look, about how we Secondly, thing around back changing is question first innovation customers to is really this. think engage this to way we you our of in rolled this our merchants. want take away I the the from with out

across cycle, not creating We checkout. now at entire the life just customer are experiences

or now XX% proposition start So have tracking Pay engagement. where starting attach Buy the driving We're merchants can use we checkout customer able our improving improve consumers, and a they see now Later. We're but reboarding latency so to at come rewards as back every improving only being Now, we're active that debit in PayPal we the into or improve to receipts experiences engagement have smart the to are ongoing we or have and an package that our between now post-purchase the experience app and our a to Mastercard improvement Fastlane, now to improvement, the value with choose so onboarding the our not we they customers a reason giving purchase. CashPass, back and

new and so we through. our then lean data is insights And we're or demand that finding our our merchants and challenge biggest through about creating which merchants into have, Platform Offers that leaning generation as AI can the engage through we actually that customers the shopper our think and solving Advanced to start can their personalize experience

looking what does experience, look entire about transaction through about we'll what have. metrics I is ongoing like? What use -- going So into the So our It's users? that how and success does at our the you think like are the from we margin are it. that's look measure to it end-to-end we turn way active think

from comes the Ng Goldman question line of Sachs. next Michael with Your

I the that about Braintree? OpEx the PayPal's system How And that deemphasize? outlook pricing unprofitable will commitment PayPal tie a into impact strategy high-quality in growth. wanted of your products profitable how to question durable, does What non-transaction ask is to does flat? XXXX

Mike. Thanks, Great.

I'll about talk some have products then businesses. about Braintree me Jamie the other and Let talk of and potentially

rolled we largest gotten the back. we've focused So a We've think you hasn't were just the heavily ago, was It take trying on have gaps go competition. really at you in Then and few let and if what back to leapfrogged look scale, there enterprise market. now establish product U.S. the invested the the we've proven product. of itself at Fastlane, customers, which with you I the to me now scale like while in the years delivered in innovations have some product out Braintree, parity. really

that not ability customers that also provide to allow merchants, Now, us rates but the best It Buy them shop want to the us us including and what only be allows experience PayPal unbranded, for Later. ways to a the with allows do? to best-in-class pay, to the Pay all processing and and So it on auth does have give package with other one-stop that

market to ramp a price-to-value we really not being to will shifting Braintree, have start but our conversation with up are towards now able think We go merchants only to also about and for how PPCP. to able being

higher are margins. have now into that also We markets moving

and PPCP now, and different value both have again, to price small allow with to and conversations. Braintree international business So us

it about we comes So be to the focused that have Braintree. not to product market think win. unprofitable now when able is We're in and We it. how to think we on growth compete effectively

I'd doing part we and Mike, opportunity to I thing many it what have into on really pricing, really that market things. of is things your into from are decisions stopping stop other spaces. those and And to to And just and that really make It in focus opportunity competitiveness. biggest prevent question, gets the doing too we doing say leaning is gets us our into Yes. guess the right gets that market into things

So knee now. we in that right deep are

we transformation exactly execution, what And so we're about. talking when and talk a that's about of year

line Your with next of from comes question Barclays. Ramsey the El-Assal

growth? I you balance room confident versus of much wanted taking have do are How of kind that you are how strategy? growth thinking continue cost expenses you on to sort executing leeway to And about guess, you striking control have the or ask while opportunity to how out both? that about I simultaneously

and up muscle week muscle, definitely us levels engineering exactly the or. deeply back doing is And And to to something just really for isn't is not -- into say putting into an place. workforce we're would going and that we to ago it's the that's really Yes, that the to this commercial into that invest that we expense do innovation rightsizing our to for we be that won means what that, and and the a that grow And got a and, marketing, an announcements important product done. future. set with made the I taking have company

to through productivity. And through that, have to we to levers our just more things be driving efficient, are for forward. harvest opportunity profile be automation, be that more gives go continue us deeper we that -- we right significant that as invest know as We that the

comes of with question line from Faucette next James Your the Stanley. Morgan

I Alex. than in stock-based it. clarification and starting a quick from be a you non-GAAP excluding question But the compensation James, said have quarter, including your rather first that you'll for

few a fast non-GAAP does we roughly billion. the So would that that that we $X.X just imagine forward that that reduced months, mean be if earnings by

Just looking bit a little there. clarification for of

And of add to wondering like you from made then, in and Alex, improve terms right and improvements how ability tech interesting and now things big stack perspective experience. integration kinds of your too organizationally. customer feeling feeling where to we're of the of But level the drive terms perhaps comment about are an that you're at in the functionality I'm the

exactly your have first on it Yes, James, you question, right.

a we'll so quarter, back do So we'll to that our that first about where yes, basis. start the the retrospective But we've got on expense beginning compensation time, right. that in closer stock-based provide data in look everything we'll and the including you're comparable non-GAAP thinking

And The tech stack. and around years then, transparent. of through company over a the on the growth lot has question significant James, be few last acquisitions. your gone Look, I'll

it data the able invested comes down comes to to it to the across in again not have when when a We single leverage us ecosystem. slows down being slows enough That innovation, platform. creating and us it

to are now starting improvement. and We investing that in see heavily real

that a a engineering the start engineering velocity, to customer profile entire that and the win a system X be but and the ecosystem being or entire risk different to our team across deploy out reporting that can It in. build able can is to a heading to couple for ecosystem, this is of the able actually provide to to accelerates of single to a be innovations call, should these mentioned we and consolidate. that direction customer has a I able also once just as also customers see services-based now able really view this products", things say, put sees across that now have being the able on so cross-sell but in is be us being huge "hey, we're we X

weeks would go. that see last to you so But put a We we possible weren't platform. started couple the investing -- ways have say over that. innovations to the even heavily we out really And in being of without the us I just also

drive will organization for primary velocity efficiency. and focus and and a the it's so me And

the Your ISI. Evercore David question next with of Togut from comes line

its major to payments. point-of-sale iOS A PayPal? with through Apple in What in opportunity this NFC regulatory present and chip physical payments for just change does went Europe up opening

question, Yes. David. Thanks for the

being is partner closely. a the this side ours. solution online and PayPal of customers And an to demanding Apple have are as our e-commerce off-line We -- are great that omnichannel able love tracking on well.

we'll deliver And to So and off-line. both for on we is this. to working available, able our be when ready will it customers, be closely be online

Sanjay Sakhrani KBW. next comes line the with Your from of question

X more prioritization do Alex, on more those one the you And be on investments will these maybe you'll early? additional think XXXX, trying just yield how them, the initiatives. of the quickest? maybe of little sort timing which Of to returns a bit I'm initiatives, through making. think of not but

quick interest question Jamie, then, on just the rates. And a

lower impact I forecast it in but think to you or impact rates in big mentioned, have you rate as you expect XXXX, have? an do have XXXX? you a big an is don't there explicit Like

able a they're where of for PayPal, coming with experience huge time a to and on us, exciting is we let easing And branded for is driving This of combination will out that's immediately experience both over closely the to incredibly be merchants teams consumers, with your reward again, for executing check these customer through focus a So that to next question. ensure months. on couple The that comes velocity are watching have the all experience. specific are really a them, me and experience. is for that every are all that the the weeks innovations of on our new but innovations be to of back I choose and and a am get the app out two us, focus PayPal,

to Then we drive have adoption.

innovations, our with conversations having latest that easy is to ensuring for well. make that it merchants, they're ensuring upgrading that's as them we So that

experiences a portal. take can why no-code, get you've creating So it us new they've so developers We're developer low-code because experience demand market. shown that's that have a best-in-class the and they into seen now launch

that is very focused step branded I'm on one So experience.

them, interesting consumers effect branded to on side, pass to unbranded create but is an Fastlane not have ensuring out. it's those branded to is second only gets that rolled the me, able of and anyone a a a That, The ours able to network merchants that them And well a checkout our one go we're and starts as with which experience, experience, Fastlane whether being for gone just us able our have through follow-up want complete they've experience. else's help identify because guest flow, to able them, that to the we're to then through we're conversation or transaction. customer

we me, right to points most on I'm need that So driving focused out, it's driving, and show but now. X to but outcomes, those need on get board rolled we that get the to is where

Yes. Sanjay, half-focused. more that customer balances a will the on And be but first expect it will really the interest on we question, do growth year, interest rate income have strong this

guide, cuts do our our front. much and why underpins The expect on of should macroeconomic the be lighter that series assumed that's second a that scenario rate second in that half is we half,

is questions. for Chriss remarks. I turn to have Alex time closing we for the it That all will

position Thank for reemphasize the business want XXXX grow and with will transition I'm Fantastic. the the today. long-term in you to positioned Sarah, the set to to real up we're you. I know going market, Thank excited you, a our in driving that all where and thank opportunity year commerce. foundational to joining is execution us and We're our focused that role there company transformative on I changes future. success. be a for that is for

concludes conference thank call. you you. This Thank for today's We joining.

now You lines. your disconnect may