Hi, everybody. Thanks for coming. My name is Connor Allen. I'm a payments analyst here at J.P. Morgan. We're really happy to have Mike Milotich here, CEO of Marqeta. Mike, thanks for coming.
Thank you so much for having me.
I thought we could just kick off with the state of the union a little bit. We talked before this about, you know, your first quarter and kinda the reaction to it. Maybe you can just start off with what you saw in the print, the recap of the quarter, and any surprises you saw.
Sure. We had a very good quarter. In my view, our TPV growth was 33%, net revenue and gross profit both 19%. All those were on the high end of our range of expectations, did well. You know, our EBITDA growth was 66%, which was much better. Net income of $8 million, which a milestone for us, our first quarter of, on a pure operating basis, generating positive net income.
On top of that, we announced, you know, several good wins in terms of customers who are expanding geographically or customers who are doing expanding upon what we'll talk more about, I'm sure, the product continuum of credit and debit and the many products that are in between, even started processing for one of the large financial institutions in the U.S. I would say overall, we felt very good about the quarter and, no surprises, mostly as expected.
Despite coming in at the high end of gross profit, you didn't raise the full year guide. Could you talk about maybe why that is, maybe your kinda approach to guidance overall?
Sure. Well, when we start the year, I mean, first of all, in the first quarter, our earnings is in late February, so we should be pretty good at that point at understanding what's gonna happen in the first quarter. Our, our thoughts on the full year likely aren't gonna change that much. You know, for us, we ended up on the higher end of our gross profit range. We were still in the range, but on the high end. On a full year basis, we also provide a range. Our view was we haven't seen enough to say we feel any different about the last three quarters of the year, so we're still within that original range we gave. It's just a little early in terms of having a lot of new information that changes our perspective.
I think we did raise our EBITDA and our net income because Q1 was materially better. If you just flowed that through to the full year, it made a difference. We made that change. We try to be transparent with guidance and give a realistic and our actual opinion of how things are gonna perform. In this case, we, again, were a little better than expected, but not enough to change the full year at this point.
There's maybe a perception that your view of the back half had changed because you hadn't done that. As you said, there was no change in your view of what the back half could be on the growth side.
Not at this point.
On the growth side. Maybe just to, like, check the box, was there anything in the macro environment you'd call out that might have contributed? It sounds like no, but anything on the macro you'd highlight?
Macro, there's a lot of concern, everyone's watching closely. I would say we see what I think a lot of other payments companies have said, which is a very stable, healthy consumer and SMB spending. You know, one of the ways we look at it is we break up the market between sorta high, medium, and low discretionary spending, because that's where we feel like you'll see trade-offs being made or you'll see pullbacks on the more discretionary items, for example. We're really seeing it. It's very stable. If you look at Q1 versus Q4, no discernible change. Right now, you know, nothing of concern that we can see in our numbers.
Okay, great. Stepping back maybe away from the quarter, away from kinda the tactical questions around guidance, growth is super impressive. It's above 30% on volume, has been for a few quarters now. I have a whole series of questions here that I think we'll go through across the different vectors of kind of where that's coming from. Maybe one to start out would be kind of how you disaggregate that growth between new and existing customers. Like, I wanted to talk through the pipeline and all the build-up to that. At a high level, is there a way that you kind of approach that?
Well, I would say we start a lot of the way we talk about it on our earnings call is by use case. That's one way we look at it. Clearly, buy now, pay later and expense management are both the stars. Buy now, pay later growing close to 60, expense management growing over 40%. Those are good-sized businesses for us, sort of in the mid-teens to high teens as a percentage of our total TPV. You know, that's one of the factors. In terms of looking at it, on a new customer basis, the way we typically look at it is when programs launch. We look at the programs that have launched in the last two years, 2024 and 2025.
Among those customers in the quarter in Q1, that contributed about 10% of our TPV. A pretty meaningful contribution considering those programs have only been live for at most two years. When you look at the breakdown, you know, it's growing well over 100% overall. How that splits, to answer your question, is that the new customers, so in that time period, in 2024 and 2025, we signed about 40 new logos.
That volume is growing about 100% year-over-year in the quarter. We also land and expand a lot with our existing customer base. You know, one of the other stats we'd shared previously is that among our top 15 customers in that time of 2024 and 2025, 14 of the 15 launched at least one new program with us. Among those 15, it was over 30 programs total that were launched. Those existing customers that expanded with those new programs were growing well over 200% on a year-over-year basis.
That's quite common what we see, because a new logo, you're still figuring things out and getting the value proposition right versus a lot of our existing customers, they're expanding into a new geography or an adjacent product line, and they already have it down. They have a rhythm. Obviously this coincided with the rollout of Flexible Credential and things of that nature that have really taken off. You know, that's the contribution in terms of how we look at it between, you know, sort of newer business
You know, versus programs that have been around a while.
You have a cohort of these existing customers that are large, they're launching programs, and those probably ramp faster, like you're saying, and the new logos that are coming on, and those take some time.
Right.
I did want to ask you about some of those. You mentioned a couple new wins this quarter. You touched on it. Geographic expansion, I think you mentioned Ramp and Sezzle, their portfolio migration for another customer I had written down here, product expansion with another, and then the FI that we'll get back to. The momentum seems really good. Was there anything you'd highlight maybe among those? Like, it felt like kind of a there was a longer list this quarter than most. What would you highlight among them?
I would say the two themes that we tried to highlight on the call that I think are really important because they're relatively new to the issuing business. One is this concept of multinational issuing. You know, 10 years ago, because everything was dominated by banks, there just are very few truly multinational banks, you know, beyond like treasury and things like that, like actual card issuing. But that's not the case for fintechs who started in a market, but then now they think about themselves more like tech businesses. Once they got product market fit in a market, they start to look at adjacent markets in other countries. The same thing in embedded finance. A lot of the larger enterprises we're talking to now, they're already multinationals.
If they're going to roll out a card product, they're thinking multinational from the beginning. This expansion with both Sezzle and Ramp is just another extension where, you know, we made a comment on our call that of our top 15 customers, 12 of them are in more than one country with us. This concept of multinational issuing, I think, is gonna continue to be a bigger and bigger story, and we're uniquely positioned because of the way our platform works. The other major theme that we tried to highlight with the other two wins is this concept of a product continuum. Rather than just it's debit or it's revolving credit, there's actually some products in between where you've got debit with buy now, pay later infused in a Flexible Credential format.
You've got secured credit, which is really a credit builder-like product. You have charge card, then you have revolving credit. I think the way the market is evolving is, again, the way fintechs and embedded finance customers are thinking, they want to serve all their customers who use them regardless of where they are in their financial journey, which is usually not how things worked before.
It was either a premium card or it was, you know, a very targeted value proposition. These businesses are a lot of times looking for engagement, so they want to serve the whole customer base. They want, you know to represent all the demographics of their potential user base. The other two deals we talked about was a very large debit program, neobank on our platform, who rolled out a secured card as an extension.
I would say the other one was even more interesting because it was sort of has all the ingredients of a very fun win, where it's a migration from a competitor. It's a new innovative solution where they're gonna pair buy now, pay later with a secured card value proposition. We're gonna use Mastercard One credentials. We're gonna be one of the first programs to utilize that and sort of demonstrate our leadership in Flexible credentials. They came to us because the existing program is in the U.S., but they're thinking multinationally.
They think maybe one day they want to do revolving credit. That's why they're moving to our platform. It's just one of those fun wins where a lot of the things that we would consider to be some of the things that make us unique is exactly, you know, why this business is coming to us.
It ticks a bunch of those boxes.
That's right.
Yeah.
Then of course, you know, getting in with a large financial institution in the U.S. is a hallmark. It's we're starting small, but we're getting our foot in the door, and I'm sure we'll talk more about that. That's a, you know, a very exciting development for us.
Yeah, lots of ways to go from that. Maybe I did wanna ask kind of on like the geographic expansion as a theme. I did wanna ask about Europe later, but maybe as we think about it, like I noticed from that announcement that there was quite a few regions. Maybe you could just talk about like the flexibility you have to expand globally with these customers, because obviously you have the presence in Europe. You've talked about some in Latin America. Is there anything else you'd maybe add about the flexibility you have there?
Yeah, we are certified, because every market you have to be certified by the network to operate there, and we're certified in over 40 countries.
The way we really think about it is we focus on U.S., Canada, Europe, including U.K., Australia, New Zealand. Those are the places that we will serve local customers. We also process in several other countries in Asia and Latin America, but to serve our multinational customers, not to target local business. That's sort of the delineation. We're looking for customers who sort of originate, if you will, in U.S., Canada, Europe, Australia, New Zealand. We will help them, like in the Ramp announcement, it was several countries in Asia, countries in Latin America.
We will, as they look to expand, we will support that expansion. In those markets, we're not trying to target local business. That's how we think about it. Again, as this becomes more and more of a trend, as these companies want to go to more and more markets, we're finding, you know, we're continuing to expand. Even as we mentioned on our earnings call, you know, Ramp, there's several other countries coming later in the year.
Yep.
Because as they sign up more multinational customers to their service, those customers say, "Well, I have employees in many countries, and I would like you to support me there." That then drives us to, you know, try to support them as much as we can.
Got it. I imagine once you have some presence, some, like, license in those regions, you're building a muscle that only supports you over time to expand even more.
That's right.
Yeah.
That's right. You do it, you know, you have to do ROI. Some places are, you know, they'll ask you to go to a place that's very challenging market. You know, payments is a very local business. Some of these countries, you really have to look at the local laws and, you know, things like disputes.
That's something we all sort of take for granted, but the rules can be very different from country to country, and you gotta make sure you know how to abide by them. There are some markets that are just not very friendly to, you know, outsiders, particularly U.S. businesses. We try to look at countries where we think there'll be broader overlap in our customer base, and places where there's meaningful opportunity. Sometimes we just have to say, you know, that it's a lot of work.
Yeah.
Unless we're gonna have a different economic arrangement, you know, we don't think that's a market we can support you.
Maybe we can shift and talk about a region where you are investing, and clearly see ROI is Europe. I think it's something like mid-teens percentage of your revenue. It's not quite doubling anymore, but close, growing really fast. Maybe you could just talk about the success you've had there. Just to, like, build in a couple of questions, kinda TransactPay and whether that's unlocked what you've hoped it would in the region.
Yeah, we're real excited about the Europe business. We see a lot of opportunity. The competitive environment's a little different there in terms of there are fewer larger entities, and you have a lot more sort of local processors that you end up competing with. We have several advantages in terms of scale capability, and innovative capabilities that has a lot of that's attractive to a lot of the local European businesses. The other aspect of it is getting back to this multinational theme. If you look at our Europe TPV that's growing quite fast, about 75% of the growth from a contribution perspective is coming from European businesses, but 25% of the growth is coming from multinationals who have expanded into Europe. You know, that is also was the, one of the big drivers of our TransactPay acquisition.
Before we had acquired our TransactPay, which gave us the EMI licenses we needed to do program management, we could process in Europe, but our offering was not consistent with what we could offer in the U.S., Canada, Australia, New Zealand in terms of being able to also take on program management. There were two reasons why we really wanted that in Europe. One was to serve multinationals. We wanted our service to be more consistent, so as customers expand globally, you know, what we're offering them, it looks and feels similar from place to place, and we didn't have that before without this EMI license. The second thing that's targeting the more European customer base is the higher end of the market, so the much larger companies want one entity to do processing, program management, and bring the license.
They don't wanna contract with multiple parties. You know, acquiring TransactPay, getting that license, and having the program management also enables us to serve the high end of the market, which is really where we're focused now as a business. You put those things together with the momentum we have, and, you know, we're really excited about the opportunities in Europe.
I think, yeah, I think you've actually mentioned a deal or two that has kind of been unlocked because of it. Like, you've already seen some traction with some announced deals.
Correct.
Yeah.
We already have some, like, a long-standing U.S. customer for expense management. Once we got that license said, "Okay, now we'll go to Europe.
Yeah
Because that's gonna be very easy now for me to make that product, you know, make that geographic expansion versus before.
Yeah
They had a lot more work to have done and beyond processing, which we could have done for them.
Yeah.
So.
I'm sure it won't double forever, but it does sound like it's growing well. We'll continue to track it. maybe shifting gears a little bit to credit, if that makes sense.
Sure.
Similarly kind of acquired some capabilities in that part of the market a few years ago. Candidly, I would say the kind of rollout has been slower than I would've expected. Turning to you, how would you know, kind of acknowledge how that's tracked?
Yeah, that's very fair. I mean, two years ago, if we had sat here and said, "Okay, we're gonna be here a t this point in May of 2026." I would've liked us to be a little further along. Credit comes with a lot of complexity, both in terms of obviously there's more financial risk involved for the various players. Maybe not us, but our bank partners or our customer, and there's also the compliance and regulatory environment. Also, there's just a lot more things to consider. I would say it hasn't, you know, maybe we underestimated some of that, but now we've got some real momentum. We have consumer and commercial programs live on our platform. We've got several additional programs, particularly on the consumer side, that are gonna be rolling out later this year.
Now we have, because of that experience, now we have several things in our pipeline that are more what I think people when we talk about our credit business sort of immediately go to a co-brand credit like offering, a standalone credit offering. We have more and more of those opportunities now are coming to us, which is great. I would say, again, getting back to some of the themes though.
I would say where we're maybe seeing more benefit of something that we hadn't really considered a couple years ago is, again, this product continuum basis. Now we have a lot of people who may not be launching a co-brand credit card yet. Like this deal we won in the quarter, they're saying, "Well, I'm gonna do a secured credit and a buy now, pay later proposition, but I wanna do credit later." The fact that you're on a single stack and that can be done very easily later is very attractive to me.
Yeah.
You know, we are making more progress in credit than it appears because people just say credit, that must mean co-brand. It is fair that we would like to be a little further.
I mean, internally, our view is that, I mean, we've seen some neobanks already offer and take advantage of it's a win-win in many circumstances. Our view is that we'll see more secured credit, more, I like the way you described kind of multi-product across the kind of consumer stack, and it feels like you would benefit from that.
Yeah. Well, what's happened over time is the co-brand credit market has really gone premium.
Yeah.
The rewards have gotten so competitive, they've become very premium products, which means, you know, more people are declined for the card than are accepted. As again, the market evolves to people are looking at these cards more to drive engagement in their core business than just as sort of an additional monetization engine, that's not a good equation for them. They don't wanna be declining that many people. They start looking at, we're getting a lot more interest in co-brand debit.
Sure.
Secured products, you know, integrating buy now, pay later to set up a sort of a path that can support that customer or SMB as they, you know, evolve over time.
Got you. Of course, the Flex Credential or the Mastercard one as like a layer on top of and around a lot of that.
Exactly.
Yeah.
That, 'cause what that allows is that you don't have to re-card.
Yeah.
In the past, as that consumer maybe moved up the value chain, if you will, you would've been have to re-card them every time, which then gets you concerned that maybe they'll change. That's why people don't like to re-card. The Flexible Credential gives you that opportunity to use the same card.
Not have.
Even while the value proposition is evolving.
Yeah. Shift gears again back to something you discussed, which was the kinda financial institution opportunity you did. It was a pretty unique announcement. I think it was a wallet funding, kind of like a new construct by my ear. Maybe you could speak about that a little bit?
Sure
You know, just it's been a long-term opportunity for a long time.
Yes
I don't think anyone had expectations that it would move quickly. Yeah, just check in on that kind of front.
Yeah, the conversations with banks are becoming more frequent and substantive, is what I would say, probably over the last year. My view of why that's happening is because the fintech winners have been crowned, as I like to say, and they are now expanding their businesses, and they're becoming big companies. Many of them are becoming quite big companies. Then what's following in their wake are some large enterprises that are getting into the space, and I think that's creating more and more pressure on the incumbents to potentially modernize.
There's just a lot more effort to put into and thinking about modernizing because it's becoming clearer and clearer that the value proposition doesn't stack up and they're losing share, both on the consumer side and on the commercial side. When we're talking to financial institutions, they kind of fall into three paths. Well, I would have told you only six months ago, two, but now a third has emerged. One is a full migration, right? I'm going to actually get off my old stack and go onto the new. That's probably less common because it's a lot of work and there's risk involved, but there are conversations we have with banks who are considering that.
The second is more de novo, we're gonna, we wanna come out with a new commercial card or a new consumer value proposition, and we're gonna do that on a more modern stack so we can have the kind of capabilities we want for that product. That's probably the most common. The third is what we're doing, with this bank, which is, you know, infusing modern technology into their existing product. Think of this as they don't wanna change all our technology, and they've got millions of cards issued, so they're like, "We don't wanna re-card, but is there a way you could help us? We wanna inject a line of credit, almost like a buy now, pay later, like transaction-based lending offering into those products.
Is there a way to do that without having to do a lot of technology work? We came up with a solution that mirrors a lot of how we supported our buy now, pay later customers when they move for the point of sale. It started as a pure online business, and then it started to move to the point of sale, where when you're in the store, you see something you want to buy that's out of your price range and you say, "I would like to buy something for X amount, and I would like financing for it. What is your offer?" Then they would get you approved, and if it was a buy now, pay later company, they would push you essentially a virtual card that then you would pay with.
This is a similar solution where you would go into the app, the wallet that this bank has created, you say, "I want to establish a line of credit for this purchase." If they approve you, what happens is the customer doesn't really, and the cardholder doesn't really understand what's happening, but essentially there's a virtual card that's kind of in the shadows underneath the transaction, and that's what's being used to pay the merchant without that cardholder actually understanding that's what's happening. Then they've now entered into an arrangement on this line of credit with the bank. It's allowed the bank to offer something very innovative that has a very good user experience.
It, it feels very slick 'cause they don't actually understand How it's being executed from a payments perspective, but they didn't have to do a lot of technology work. What makes us excited about that is, you know, it's always hard, as much as, you know, slides and you wanna talk about it, to explain to someone how different your technology really is, the best way is for them to experience it.
Just to get our foot in the door and now have them processing real volume on our platform and seeing how different that is than maybe what they use for the rest of their business, that's probably more of an incumbent platform, they can start to see the difference, and we think that only plays, you know, plays in our favor over time.
Yeah, the foot in the door reminded me, 'cause I think you do tokenization for some large financial institution.
That's right.
It felt similar, right? Where you can get in, show your capabilities, and then land and expand.
That's right.
Yeah.
This is sort of a, I would say, the next step.
Yeah.
Now we're actually doing processing.
Yeah.
As opposed to just the tokenization.
Something more innovative, kind of customer centric. Yeah. Exciting. It sounds like there's, the way you speak about it sounds like this isn't a one-off. Like, there's a possibility to kind of expand this across-
That's right.
Yeah.
They've done this for a certain portion of their business, and assuming success, which of course I think both sides are assuming, then yeah, they have, you know, more surface area essentially to do something similar. We've said for a while that we felt either in commercial card or in buy now, pay later, the two areas where we're particularly strong and differentiated, and also where the banks maybe are coming more under pressure are probably the areas we'll break in.
Sure enough, that, you know, buy now, pay later is the sort of first one.
I don't think we can get through a conversation without talking about Block. Need to talk about it. It's just over 40% of revenue. Non-Block TPV is growing twice as fast. You've seen Block step down in terms of concentration, but Block's growing fast.
Yeah
I mean, you're commonly asked, but we'll ask you again, how do you kind of think about the concentration?
Yes.
What, give us an update on there.
They're 42% of our revenue, which is down two points from last quarter, and I would say if you looked at the last eight, 10 quarters, we've sort of been chipping away at it like that. A lot of that has to do with, you know, they're a very big customer of ours, and they still grow fast. We don't consider it as much of a problem. We understand the concentration draws some concern from investors, I think every business would love their largest customer to grow fast and that's what we have. You know, we think that's a good thing.
Even though Block, you know, everyone is talking about, you know, Cash App starting to maybe diversify some new issuance, you know, we, at least as of the end of Q1, we hadn't seen any impact of that yet, it's taking a little longer. We think there'll be a small impact in Q2, it will be more impactful in the second half. For now they are a little bit behind. What's also important is that we continue to talk about doing new things together. It's not as if they're diversifying and they're sort of like, "we've moved on," right? "We're going in a different direction." It's more standard risk management, which we completely understand. Right now they essentially only use us for processing across Cash App, Afterpay, and Square.
For them to diversify some is the smart decision. We want to remain their primary partner, process the bulk of their volume, and because of our, you know, the breadth of use cases and flexibility and capabilities we have, we constantly talk to them about new things and continue to expand, and that's what we would hope to do. I think, you know, we would expect that our non-Block business continues to grow. You know, the TPV has been 2x for a while now, that helps us chip away at it, but we don't think there's going to be step function changes because, you know, we think there's still a lot of growth opportunity with Block.
The, for what it's worth, my read of the pace is a sign that what you do is hard, and it's hard to switch, right? There's a certain switching element to it that's challenging to overcome. Maybe you could just speak a little bit more about the concept of diversification like you've mentioned. It's important. It's a sensitive topic.
You've talked in the past about how it's not uncommon for large customers to have some duplication. Just remind us kind of that commentary.
Yeah, so almost all of our largest customers, if you looked at our top 10, the majority of them have diversified their processing. It started with virtual card. You know, that's the easier one to do. A single-use virtual card is a much easier use case to diversify, we saw that first in buy now, pay later, and in some of the expense management use cases where a virtual card's involved. I would say in some other use cases we've also seen it's quite common among our largest customers. In each of those cases, we've maintained the majority of the business. With almost every one of those customers, they've also continued to do things with us. It really is about risk management, which again, we very much understand.
I would say we've also helped many of our customers diversify their banks. Many of our largest customers are using more than one bank on our platform, it's not just processing they're diversifying. They're looking at the whole value chain.
spreading out the business to make sure they can have good continuity, and they can, again, a lot of times it's to keep people honest. You have a primary partner to maximize your economics, but you do have a second partner to keep your primary partner honest. You know, this is something that we believe is common. We were the first mover, you know, in this case, you know, we're not a net beneficiary because we were the first mover, so we had most of the business. I would say as you think about what's coming in the future, whereas we move more into enterprise and ultimately into banks, then the script will be reversed, right?
Now we will be the challenger, and not the incumbent. If people wanna look to diversify, then, you know, we will be happy again to get our foot in the door and show what we can do and grow from there.
I wanted to ask a related topic on competition. We've seen modern processors invest in issuer processing. Paddy's familiar with one among others. We've seen Visa obviously invest in the space. Have you seen an impact in RFPs? What would you say on competition?
Not really. I would say overall, the competitive intensity is the same. The types of businesses or competitors we see now versus, say, two or three years ago might be a little different, in terms of who we see more frequently. You know, some have risen up and are stronger, some maybe are struggling more. Overall, I would say the competition is relatively steady. We also have a unique proposition where most of our competitors only do some segment of the market. They only do debit, or they only do commercial, or they only do neobanking, or they really only are expense management player. They only do virtual card, right? That's sort of how most of our competitors are. We're the only platform that sort of does it all.
In some ways, each from deal to deal, we tend to just see different people because, you know, we can respond in almost any setting versus many of our competitors are a little more narrow than we are. We think that's what gives us an advantage is, again, as we start talking to enterprises, then it's easy for us to talk about, you know, if we start thinking on a three or five-year plan, you're probably gonna want credit and debit. If you're a two-sided, you know, platform, you might have commercial and consumer. You might wanna do embedded, you know, sort of expense management, bank your SMBs on your platform, but you also, you know, might wanna do a traditional, you know, co-brand debit or credit card to consumers.
You could do all that on our platform, and we could give you that scale and help you do it on a multinational basis. That's where we really feel like is our special sauce, is that there really isn't a trade-off to be made. You know, we can do it all, and we think that will serve us well as, you know, time goes on.
It goes back to the theme that you mentioned, which is more products, a diversification of products, and you have the breadth to support it.
That's right.
We have under two minutes left. I thought we'd wrap up with something that you and I have talked about before, which is kind of the merchant versus the issuer side of payments.
You've seen both.
I have.
We've seen the merchant side modernize over many years. Catch us up on where you think kind of the issuer side is. Like, how much opportunity is left to kinda modernize that side of payments? What are you excited about?
Yeah, there's still so much opportunity. I think, you know, the modernization started on the acquiring side. It was really driven by e-commerce and then how that bled into omni-commerce, and that, you know, created a need for more technology. I'd say on the acquiring side, it's more like there are almost events. It's not as much of an evolution. It's like there are revolutions, but they come every, you know, 10, 15, 20 years. Issuing inherently is different because it's on the card holder, so it's the value proposition of the card, which means it's constantly changing. The competitive dynamics in the market are constantly evolving, which means it's just a much more competitive space that requires constant adjustment for those products to evolve. That also means there's a lot more work.
All the regulatory burden, everything else also falls on the issuing side. As I kind of mentioned earlier, I think what an exciting development is that again, the fintech winners really showed what was possible, right? They've really demonstrated it, and again, several of them which are on our platform have become very big businesses. Now there's no kinda disputing that it's a real opportunity, and they're winning, and they're taking share from others. Some are growing the pie, I would say for the most part, they are taking share, and that is, you know, waking up the rest of the market. I think we're still in the very early days, right, 'cause expense management, for example, like embedded platform software businesses are looking at, okay, should that be kind of integrated into my offering?
Buy now, pay later, I think it's gonna be on more and more debit propositions, not just the buy now, pay later companies doing it, but lots of businesses having that as a feature of a debit product. I think SMB is another area where we might start to see more transaction-based lending. I think it's still early days. It's what's exciting for us. There's so much opportunity to go get, and it's just a matter of how fast the market can move and how quickly we can, you know, meet those opportunities.
Excited to see you attack it. Mike, thank you. Paddy, Sarah, Maria, thank you all.
Thanks so much, Connor.
Thanks.