All right, I think we're ready to go. Great. Thanks everyone for joining in. Get the thumbs up. This is Tien-tsin Huang. I'm really happy to have Matt Oppenheimer here from Remitly following up against Western Union. Get some an hour of remittance talk, which is great. Only a nerd like me appreciates that. We had Matt here in different sessions in the past. Always learn a ton from Matt as CEO and, of course, founder of Remitly. I always like you starting or ending with the customer story. I know it sounds a little corny, but I thought maybe you could start with that.
Yeah.
Just to set the table for us before we get into the Q&A.
Yeah, absolutely. Love that. Thanks. I'll tell one that's pertinent, actually. When I was taking an Uber from the airport last night, there was a customer, Michael, who sends money back to Morocco. Just chatting with him about him, his family. He has two kids. A lot of, lot of shared personal similarities there. I asked him, you know, just about family back in Morocco, he said he's been sending money back for a long time. His dad originally sent money back. He used to send money with a legacy provider, but his wife told him about Remitly. He was just talking about Morocco. He has a lot of aunts, uncles, cousins there. He's going back to travel there in July. He said, "I don't need to take any money with me.
I can use Remitly. It'll get there instantly." It just gives him the trust and peace of mind that he was looking for. The most meaningful thing was, you know, him saying how far that money went, you know, with his family back in Morocco, and it's a theme we'll talk about today. Part of the benefit of that from a business perspective is a resiliency and a predictability that comes with being in the remittance business. I say this once a day, especially right now, given all the uncertainty in the market, my job as CEO is much, much easier because of that resilience, grit, tenacity and commitment that our customers have with their families back home.
Yeah, great matters.
Yeah.
Good. No, thanks for sharing that, Matt, and thanks for being here. Maybe I'll kick it off. You know, it's been almost a couple years now since the IPO, and I know there's been a lot of ups and downs. The market's been crazy. Remitly seems to be in a really good rhythm, is what I've been saying, you know, to investors. Why do you think that's the case?
Yeah. Yeah, we feel, obviously you read our latest quarterly results, but, you know, growing quickly, 50% up year-over-year in terms of revenue, $204 million in revenue for the quarter. You know, solid growth-
Yeah.
-at our stage and size. I think that it's a reflection of increasingly differentiated product that comes from scale. I will tell you, the ability to build a trusted product that builds peace of mind with our customers now compared to when we started this business 12 years ago is dramatically different. I'll get to some of those themes of why. Scale really matters in remittances, just like any payments business. The second is a digital-first approach. It's much, much easier to innovate in this space, building from the grounds up a next generation remittance business. I worked for a large bank before I started Remitly doing digital channels. I know how hard it is.
While there are other challenges, especially for a subscale money transmitter, that's digital first, scale digital first enables us to really reinvent international payments, in a way that builds unparalleled peace of mind, instant transfers. 90% of our transactions now are delivered less than one hour. You know, we have over one million App Store reviews, 4.9 star app rating. There's so many examples I could go through, but ultimately, that digital first with scale is just creating this flywheel effect that helps us deliver an exceptional experience for customers.
Since going public, Matt, would you say that there are any important changes that you've made or pivots that you've made that may have put you in a better spot than, say, at the beginning of the journey of the IPO?
It's an interesting question. Yeah, I think that, the IPO was a continuation of a much longer journey and vision that we've been on now for 12 years. It gave us the capital, that we wanted to continue to accomplish our vision. It gave us, I think some additional visibility from a customer standpoint. I think customers, we talk about trust and peace of mind.
Mm-hmm.
I think some of our customers do notice and look that we're a public company and look at the stability and predictability of our business and have peace of mind from that. Ultimately, it's been a continuation of our vision, which has been the same for, you know, many years. It's around really transforming the lives of immigrants and their families by providing the most trusted financial services on the planet.
Yeah. Customer growth is up 50%, as you called out here. Can you build up the growth for us across, you know, retention, new geos, corridors, same-store growth? How would you build it up for us?
Yeah. We're investing in four areas that all have different timelines of return, and that's how I think we've sustained really high growth return over multiple years. First is acquiring new customers at great unit economics. Building that top-of-funnel trust is hard. There's also, I mentioned scale, a lot of scale effects in terms of word-of-mouth. That's how Miguel, who I was talking about at the beginning of the meeting, found out about us. His wife found out about Remitly via one of her friends that trusted the service.
Mm-hmm.
That's number one, adding new customers, great unit economics. The second is around expanding new geos. We had talked about UAE and some other markets that we launched. That's planting seeds for future growth in future quarters and future years. The third is building unparalleled peace of mind with our customers. When I say that, it's everything from really going deeper in our 170 countries that we operate in to really, I can go into more depth later, but provide end point integrations and distributions with now over 400,000 cash pickup locations, billions of bank accounts, billions of mobile wallets now across the globe. That's one example.
We can go into the data and analytics required with our risk systems, etc. , but all of that makes transactions faster and more reliable and more predictable. The fourth area we're investing in is complementary new products and services. We have a deep relationship with our customers, we know we can expand to additional services over time. Those four areas and a really disciplined investment approach to those areas is, I think, why we've not only seen growth this last quarter, but why we've seen a lot of growth over, you know, now many years.
You're doing this with the CAC moving in your favor. You saw some marketing efficiencies. I think I wrote down CAC was down 31%. How sustainable is that? Is this sort of a one-timer, or is this something that we can count on?
Yeah. We've seen, if you look at the overall customer acquisition costs over the last year, we've seen really, you know, encouraging improvements, and I think that's because of some of the scale benefits, word of mouth. It's because of our marketing team. We have an amazing CMO in place that is now, I think, building a team and executing in a way that has always been true to our strategy. Unit economic focus, data-driven, more bottom funnel, so you can really measure and dial up and down marketing spend depending on the elasticity that we're seeing. Some of it has been the tailwinds in terms of the competitive advertising being less competitive, especially in a lot of the digital channels that we use.
I would expect on a, on a year-over-year basis for it to moderate, but I think that the trends that we've seen in terms of acquiring customers at great unit economics, and we measure internally things like payback period, LTV to CAC, those are really encouraging right now. You see that ultimately in the P&L when you see the kind of growth rates combined with some of the leverage we're seeing on the marketing side that's resulted in a couple of quarters now of Adjusted EBITDA profitability as well.
Yeah. Glad to hear it. Let's talk about pricing then. I know I always ask you about the pricing philosophy of the company. We just heard from Western Union. I know they're doing a lot of promotional activity, and they're shifting more towards market-based pricing. How do you benchmark pricing, Matt, when you think about going to market and serving the, you know, the mission that you talked about?
Yeah. Yeah, I mean, customers want fair and transparent pricing, but they don't always want or require the best pricing in the market. That's our pricing philosophy overall. What they want, it's interesting actually going back to Michael, and what he mentioned last. He didn't mention pricing once. He mentioned that it's a service he can trust, that gets money back to his family in the ways that he wants his family to receive it in Morocco or himself when he's traveling there. That peace of mind, ease of use, distribution options is ultimately what customers care about the most. You see that in the stability of our pricing. Over the last now 11 quarters that we've reported, it's been in the 2% to 2.5% take rate range.
Within that range, it's a lot of just mix shift. You know, different countries have different take rates depending on average transaction size. The stability of pricing, I think, is indicative of the fact that once we've taken a bunch of costs out of the system compared to the legacy providers, once you're within that new kind of equilibrium, then customers say, "Hey, what are you gonna do with my personal information as a new immigrant to the U.S.?" "Hey, is my money actually gonna get back to..." I love that you asked the customer story up front because we can make it more tangible, "To Morocco such that my family can get it at, like, what might be, you know, a cash pickup location, bank deposit, mobile wallets?" Those are the things customers care about, and we're good at those things.
What excites me is, I mean, we're 2% of the market, and so that flywheel that I mentioned has so much runway to continue to really drive down any sort of delays, any sort of exception rates. We're far from perfect there, but I think we're on the track to really build unparalleled peace of mind for our customers, which is ultimately what they care about.
To wrap up the customer sort of discussion here, Matt, I mean, do customers ultimately choose Remitly because of the trust? You said price is not something that is recall in your example. Is it really just come down to trust? I mean, what else can you do to go from that 2% to something higher?
Yeah. Yeah, I think that. I think there's a couple things. One, with scale, because we're looking at the take rate component. With scale, we can continue to drive our costs down. We can push our disbursement partners. We can push how much we pay to collect funds from things like debit cards or bank accounts. With scale, there's the ability to continue to drive down our variable costs, which gives us the ability to continue to have competitive pricing or drive more to the bottom line, depending on what we decide to do.
Mm-hmm.
What we found time and time again via customer testing, via being in this business over 12 years, is price is an element of trust. Again, it needs to be transparent, it needs to be fair, but it kinda makes sense when you take a step back and think about it. For, you know, the Uber driver that I met last night who, let say, makes, you know, $30,000 a year, $30,000-$40,000 a year, moved here when he was 23, probably a little bit reticent to, like, provide. We have to do for compliance reasons, we have to collect name, address, date of birth, SS, Social Security number or tax ID, and then we're asking customers to give us hundreds of dollars usually.
Yeah.
Their hard-earned money, we're asking them to trust us to deliver it halfway across the globe. What usually goes through our customers' minds is, "Hey, can I trust this company? Will it get the funds where I want the funds to go instantly or quickly?" A lot of our customers also don't have the privilege of being able to wait for funds to be delivered because funds need to get there quickly and because they don't make as much, they can't wait for those funds to arrive. They don't have as many savings to kind of smooth that sending. That's hard to do. When I started the business 12 years ago, I used to think like, "Oh, send money internationally, it's gonna be super easy." It's like, it can't be that complicated.
You start adding the risk systems, fraud and compliance, you start adding payment acceptance, payment disbursement, you think about doing that across 4,000 corridors, 100 corridors out of country, in to country, 170 countries. What you find is that there's so many delays, unexpected hiccups, things that happen to customers that really erode that trust. That is even more painful for the customer base that I just described. They're like, "I'm never touching that company." They'll tell their community and friends, like, "Don't go. Do not use remittance company X because there's real issues there. They stole my funds, they delayed my funds," not because that company had bad intent.
Yeah.
Because it's incredibly hard to send money internationally. I go back time and time again, and I did not think or know this when I started the business 12 years ago. I was living in Kenya. I was having a pain sending money internationally. I thought it was just gonna be about price, but ultimately, it's much more than that, and it's about that trust and peace of mind that's... Trust is very, very hard to build and very easy to lose. We just need to continue to get better every day, so we don't have those delays, and I think we can do that with our digital-first, you know, approach at scale.
Right. You've got the scale, and you've talked about trust, and the network is quite large. There's still a lot of opportunity, right? I mean, I wrote down, you mentioned it, 4,500 corridors, 48 bank accounts, $1 billion and two wallets that you serve. The race to make that bigger versus balancing the trust must be pretty tough.
Mm-hmm.
As we evaluate the company-
Yep.
Is the network gonna expand sort of significantly from here, or is it gonna be more methodical in terms of your growth, if you follow my question?
We've, we've added, you know, thousands of corridors since the IPO, and we're able to do that faster with our corridor expansion playbook. The breadth is important, but depth, to your point, is equally important. That's where looking at things like what percentage of transactions are distributed in less than an hour is what we've shared, but we monitor a lot of metrics in terms of the speed and reliability. What you also see is, let's say a transaction's delayed. Is it delayed by two hours? Is it delayed by four days? How you, how you really reduce those delays is you go deeper and deeper into those disbursement networks. Let me give you an example, just because jargony terms like disbursement networks, etc .
Also because the headline number at times cannot give enough appreciation to the depth. Headline number meaning, like the billions of bank accounts.
Yeah.
Hundreds of thousands of cash pickup locations.
Yeah.
When we started in India, let's say, we worked with like a global aggregator, where aggregator, I mean like one company that you can partner with to get a good headline, you know, number in terms of number of bank accounts that we could distribute to in India. That was fine, but higher cost because it went from aggregator to like payment system or one bank in India that went to payment systems, et cetera. As we got more scale, we integrated with our first bank in India, I think it was YES BANK in India.
Mm-hmm.
In the end, we integrated with YES BANK. YES BANK gave us access to two local payment rails, NEFT and IMPS. You can also think about UPI and other payment rails that are well known in India. That was good. That was good. Faster, better. If there was any sort of like downtime with like pick your random bank in India, we have more visibility, so we could proactively tell customers if that disbursement bank needed information from a compliance standpoint, we had a direct integration with at least one bank in India to be able to clear that transaction. There's more visibility. It's still not good enough because there's thousands of banks in India, right?
With our additional scale at first, banks like State Bank of India or some of the largest, either government-owned banks or private banks like HDFC, as a subscale money transmitter, they'd be like, "It's not worth the time. Like I'll just go work with this aggregator because it's not worth the time for me to do a direct integration." With our scale and size now and growth rate, we now have so many partners, including the India example, where we've done, I don't have the exact number off the top of my head, but countless integrations with direct banks in India, so we don't have to rely on IMPS and NEFT. That makes a much more reliable transaction, much faster transaction and lower cost transaction. That's just one element, by the way, when I talk about the...
You brought up depth, which is why I'm talking about this example, but whenever I talk about the disbursement network, I really like to up-level it because there's a tangibility to the disbursement network that people can understand. What people often don't understand is the whole path of complexity of remittances and how digital-first scale can improve that path. I'll just say it really, really briefly. It's everything from localization across 4,000 corridors. It's all of the KYC, know your customer, identification, again, across 4,000 corridors, there are different requirements. It's payment acceptance. Talking about payment disbursement, we need to collect funds from customers, and so whether that's a bank account or whether that's a debit card, it really varies. Like pick your European country versus U.S. ACH is very different than like SOFORT or iDEAL, and how well you do that is super important.
On the back end, it's all the treasury cash management. As a remittance company, there aren't as many like, just like core banking systems that you can buy off the shelf, so we have to build a lot of that custom internally, and it's so much better now than it was. Fraud and compliance, I can go into those examples later, but yeah, the machine learning and AI that we can apply to elements in the fraud and risk space are compelling, especially at scale. We delineate between bad customers we wanna prevent and then good customers that we wanna have that instant experience. Pricing across 4,000 corridors and doing that with a lot of sophistication, and then finally, disbursement network.
Remittances are one of these businesses where it's kind of like if you wanna go deep, you can almost choose your own adventure of going into any of those areas, and we could spend an hour on each one. I spent a little time on the, on the depth and breadth of our disbursement network. The reality is that digital-first scale that I talked about really applies to all of those areas.
Right. I mean, really sounds like, Matt, you know. Thematically, you're talking quite a bit about scale, and I think that's makes life easier for you, right? To break through and get these integrations done and 'cause you can repeat and you have a playbook to build against all those things. I mean, I'm hearing that as a theme. Am I wrong here?
Yeah. Yeah, that's right. I think that's true of a lot of payments businesses of which, you know, remittances is one of, you know, type of payments business. That scale. You know, that's also a great thing about being an entrepreneur and founder, is I've seen this business over 12 years, and it was harder subscale. There are a lot of subscale money transmitters out there. With our scale, the amount of customer improvement that we can drive in our business and to our product is exciting.
You, I know since I first met you, we've, I've always asked you about what countries you're gonna enter next in terms of send. UAE is one that you announced last quarter. I know Middle East is a big sort of send region. Why UAE?
Yeah. UAE is the second-largest origination country outside of the U.S. for remittances. A lot of where remittances are sent from the UAE go to countries that we already serve very well. I mentioned India. I won't go through all the countries that UAE customers send money to, but it matches well with our disbursement network.
Mm-hmm.
We believe, yeah, that the Middle East is a big opportunity for us over time. The way to think about UAE, just like the way I would've asked you to think about Europe when we launched it a few years ago, is don't expect the UAE to drive material revenue in the short term. As we have done in many other countries, you launch, you optimize the product, and then the way our business works is you start adding these cohorts of new customers, and those cohorts get larger over time as you build a brand, you build a product. Then those cohorts start to then mature, deliver more materially to revenue in the future.
The compounding growth that we've had is because of the fact that we not only have a large amount of room to grow in our existing markets, but then we very methodologically layer on these new markets like UAE, because we're not only thinking about growing this year, we're thinking about growing in 2024, 2025 and beyond. I put UAE in that bucket. really exciting market for us and planting the seeds for good future growth there.
The cost of ramping up the country, ho w is that built into the framework of what you laid out in terms of profitability?
Yeah, it's gotten a lot more efficient for us to launch new markets. That's mainly because, you know, when we launched our second payment acceptance method or our third way of doing know your customer, it was a lot more effort. There's patterns that you start to establish in terms of how funds are collected, how KYC is done that make it much faster. Languages, things like that, we've also started to roll out into, you know, many different languages. All of the localization that's required has just gotten faster and more efficient. The actual investment is maybe less than you might think in terms of new geographies, but the return is very high.
Okay. I know you talked about transaction expense and some improvements there. I know it's been following fraud you're very focused on, but as you have new customers, I would imagine fraud is a risk. You go into UAE, as you learn, fraud could be a risk as well, but right now you're benefiting. Talk to us about how much of that is structural-
Mm-hmm.
-the fraud improvements that you're seeing, as well as the expense, the variable expense that you're saving through whatever APMs or better negotiations, etc .
Yeah. On the, on the fraud side, just I think most folks in this room probably understand, it is about using, especially AI, which is... and ML, which is talked about a lot right now, we have been using things like machine learning for our risk systems for a very long time. What we use that for is to delineate between a good customer who wants to have that instant experience and a customer who might... Not a customer, but a fraudster that is trying to use our platform to liquidate a stolen identity.
Might have acquired that identity from somewhere else, would come to the Remitly site, and if we let that transaction through, to, let's say, somebody sending money to cash pickup in the Philippines, we, as a merchant, are generally liable for that fraud loss. First off, it's this balance between keeping fraud loss rate low, but also that trust and peace of mind, keeping what we measure internally, things like sideline rates, the number of transactions that go into manual review.
Mm-hmm.
Low so it 's that balancing mechanism. I think that what we are seeing is some structural benefits that, again, come with scale. Not only scale because we have more data and analytics to feed into our machine learning models, but also you look at the sophistication of the actual machine learning models that we've built now and the team that we have working on that. When we were like 15 people as a subscale money transmitter, we just couldn't do that.
Yeah.
As a digital-first player with scale, I think we have some really competitively differentiated technology that help us delineate between good and bad customers. The only other thing that I'd mention on that that I think is underappreciated is also what happens. There's the decision point of like, approve transactions in an automated fashion with the machine learning technology that I mentioned. That's the vast majority of transactions. There's the manual review path. What we've also invested in in the manual review path is helping customers clear their own transactions. We have a resolution center in our app that if we need to ask challenge questions like, "Where did you live at X, Y, or Z address?" You've, I'm sure, all gone through challenge questions in various products.
If we need an identification from the customer or X, Y, or Z, we have a variety of things in our resolution center. That also is possible with scale, and that gets better every day. I think that the when you see that, the gross margin improvement, I think it is more structural, where we've been able to both improve the customer experience, you see that in our retention rates and other elements, and reduce fraud loss rates because of the fact that our machine learning models and some of our self-service tools continue to get better every day. They are nowhere near where I want them to be, like I think about where they can be in five years.
Mm-hmm.
I think it'll be even better.
Right.
From five years ago, they're much better than they were.
Great. No, glad to hear it. I'm happy to take questions here, but I may as well ask it. You know, you mentioned ML, and we're gonna getting a lot of questions around generative AI, Matt.
Yeah.
So I've always been remember from our diligence on Remitly, your partners were always very complimentary of the company in terms of how tech forward you were and the integrations were so easy to do. How, as CEO, are you embracing this generative AI, or is it more hype than reality as you see it?
Yeah. Yeah, great question. It's certainly something that we, you know, as I mentioned, have focused on a long time and are focused on now. I think it's important to break out things like predictive machine learning models and then generative AI. I think there's a lot of opportunities. First and foremost is a highly regulated, again, going back to trust-
Yep.
which our customers care about the most, thinking about it in a responsible way and having the right policies and procedures in place is super important foundationally. With that foundation, I do think there's big opportunities, whether it's large language models that can help with things like customer support, which is a material cost for us and something that our customers don't love. They don't wake up every day saying, "I wanna contact customer support." How can we leverage some of the elements there to improve both the efficiency and the effectiveness of our customer support? I think there's big opportunities on the risk side over time.
Mm-hmm.
I think that we've got a team that is thinking about it. We're in the sweet spot in both a responsible manner because of our scale, and a pretty tech forward fashion because of the fact that we're digital first and we've only been around 12 years, which gives us the ability to, I think a little bit more, forward-looking in terms of how we can leverage that technology. More to come on that, but I'd say more excited.
Good. Questions. Happy to take some. Yeah, if you don't mind using the mic. I know there's one back there. We have the question portal too. Happy to read that if there are any questions.
Yeah. Thanks. You mentioned other products and services as a possibility for the future. Is there any other particular product or service that you could roll out that would make a big would be a big deal on the revenue side in the future? I think you backed off of banking, I believe, recently or something like that.
Mm-hmm.
If you could talk about that too.
Yeah.
Thanks.
Yeah, absolutely. Yeah. It's Andy, right?
Yeah.
All right. Thanks, Andy. Yeah. I think that, as I mentioned, the fourth area that we're investing in is complementary products, and it ties to our vision of really transforming the lives of immigrants and their families by providing the most trusted financial services on the planet. We believe that the trust and relationship that we've established with our customers does give us opportunities to add other features over time. We did decide to. You mentioned the banking product we had in the U.S. We decided to wind that down mainly because we found. While we found product market fit with that product, it was with a largely unbanked customer. Our customers have to. There's unbanked, there's underbanked, and there's fully banked. Underbanked is where our customers generally sit.
They have access to a bank account because they're linking their bank account and debit card to use the Remitly product, but they might not have a full suite of services that they might, that other folks in the U.S. or Europe or other countries that our customers move to, might enjoy. Because there wasn't an overlap in terms of our customer base, and Passbook was the product that we had, it wasn't gonna scale as fast because the synergies weren't there, as fast as we would've wanted it to. We made a pivot to think actually more broadly and holistically about, two or three pain points that are very specific.
We haven't shared the specifics yet externally, but we are, in addition to remittances, there's two other areas that we're focused on that we're excited can really add value. I wouldn't think about them as a revenue driver in the short term, but I think about them as a strong retentive model and potentially revenue upside in the longer term, where we're getting a lot of customer signal that we can solve these other pain points, and we're excited about being able to share more there in the future.
Thank you. Could you please discuss the profitability of your model, business model, and what are gonna be the key variables to scaling to higher levels of profitability?
Yeah, absolutely. Did I see Tom? All right. Yeah. Yeah, absolutely. I think that, as I mentioned, while we haven't given long-term margin guidance, it's a great question because when you actually look at the fundamentals of our business, you can see where we're starting to get a lot of leverage and scale, which has resulted in bottom line Adjusted EBITDA profitability for the last few quarters. By the way, I mention Adjusted EBITDA profitability because that's what we guide to, but we're equally focused on GAAP net income and managing stock-based comp as well. Overall, profitability from that standpoint is a focus for us.
When you look at the point we're in, we're excited because we've been able to deliver that over the last couple quarters, and we've been able to deliver at our scale and size, pretty exciting growth rates of the 50% year-over-year. I go back to those four areas that I mentioned, and the return on those investments. Because we're seeing high return, we're choosing to invest in those four areas to continue to grow. You could look at some of them, we break out, some of them we don't. You can see marketing as an example. Marketing improved 31% year-over-year, is focused on new customers. If we wound down marketing, you would still...
You would see a lot more profitability on the bottom line, but you would also see, still retention of our existing customer base. We've tested that in various markets because it is focused on that new customer acquisition. If you look at each kind of element of our P&L, whether that is the marketing side in terms of investing in growth at great unit economics, which we think is prudent given the return we're seeing, or if you look at the other elements of new geos, building unparalleled peace of mind and continuing to improve that and complementary new products, those elements we are investing in. Even while investing in those areas, we're continuing to see leverage in the business, continuing to see the kind of A djusted EBITDA profitability that I mentioned.
The thing that I feel lucky about is, and fortunate as, and as CEO, is that we have that choice. We have that choice of how much we wanna grow versus how much we wanna drive to the bottom line. We're in this for the long term, and we believe that we can continue to deliver the kind of growth that I mentioned while continuing to show leverage in the business, because we're, you know, continuing to increase the return on the investments that we have, and we have the ability to kind of, have our cake and eat it too, so to speak.
Is there any reason to believe that your business wouldn't be as profitable as other payment businesses? Is there anything about remittances that would make it less profitable than those?
No, I think, I think you're thinking about it exactly the right way and in some ways via some of the automation, whether it's on the customer support side in terms of AI and some of the technology that we believe have opportunities there. The scale that I mentioned to drive down the overall contact rate, the scale that we have to negotiate with our payment acceptance and payment disbursement partners, I think that there could be, depending on what payments company you're referencing, argument that there could be, you know, higher margins in our business over time.
Couple minutes left. A question from the portal here, Matt, around your competition Wise and their business opportunity. Is that an area of interest to you to go after the business market? How do you compare your take rates to Wise, is the other question.
Yeah. Great. I think international payments is a huge space. It, just the consumer space is $1.6 trillion in terms of the market that we're serving. While we could, you know, leverage the infrastructure that we've built over time to serve businesses, we do think there are opportunities to. The punchline is while we could leverage it over time, right now we're pretty focused on the consumer business. Now, the reason I paused there is because we do have a B2B business that does give other businesses, like banks, like technology companies, you name it, access to the Remitly platform embedded via an SDK into their product. I view that in some ways more as like a distribution channel for our existing consumer business.
For other small businesses over time, we can add that, but it hasn't been a strategic focus, just given that we're 2% right now of the overall remittance market and a lot of room to grow there. On the take rate side, take rate punch line on the take rate side, take rate is a function of average transaction size. When you look at the kind of two broad segments of remittances, there's developed to developed, which is who banks serve, who Wise serves, and there's developed to developing, who some of the legacy players who you heard from this morning and us serve. The average transaction size for those two is very different.
It'd be a few thousand dollars for the former, a few hundred dollars for the latter, but the actual revenue and profit per transaction is gonna be more similar. I always like to advise when looking at take rate, it's good to look at within a segment, like I mentioned, the 2%-2.5%, how that trends over time. When you're comparing Wise, which was the question, to Remitly or banks to Remitly, the average transaction size will bring down the take rate significantly, even though the revenue and profit per transaction would be more similar.
Yeah. No, the optics do matter there. It looks like we're out of time. Matt, I'm really glad to see you. Like I said, it sounds like you guys are in a good rhythm. I meant that. Glad to see the stock has performed well. I know you bought the stock well. That meant a lot for me to see you see you do that. It's a fun name to cover and, you know, look forward to future updates.
Great seeing you. Thanks, everybody.
Thank you, Matt.