They want the very high reliability. They want the proven capabilities, the ability that scale. They want all that. But those institutions tend to be more open to or interested in a SaaS delivery model and/or a cloud delivery model. And so, that’s where we’re seeing even more demand that we believe we can do an even better job of fulfilling over the coming years. And so, it’s the same types of offerings. We’ve already made a lot of investments there. We can deliver virtually all of our products using cloud tools and technologies and infrastructures today. And we continue to make investments to make them work even better and to make them work a little bit better for that next year down. But we’re going to continue to do that. Its part of the modernization journey that we’ve talked about for a long time.
But we’re just seeing – the point I was trying to make was that those investments, they’re already yielding results, because that is one of the places that the recurring revenue strength is coming from. Is that tier we’ve already sold business. It’s ramping up and it’s performing.
Pallav Saini: That’s very helpful. Thank you. And any comment on the performance of your real-time payment business in Q3 and anything to add on the outlook for next year there? Thank you.
Tom Warsop: Sure. I mean, we’re continuing to see growth in every region in real-time payments. Its volumes are strong. I think, I know that a lot of people are interested and I’m interested, frankly, in FedNow volumes, because, obviously, there’s been a lot of marketing done at the recent Sibos conference in Toronto, there was tons of discussion that was shortly after the launch of FedNow. The Fed has done an excellent job of marketing. But as expected, and I think I said this in the last call, as expected volumes in FedNow are very low. And that is not a surprise. No one expected them to ramp real quickly. So, no surprise at all. But what we are seeing is a significant pipeline of financial institutions that are coming on board to be ready to handle FedNow transactions.
So we have over 100 financial institutions that already are able to participate in FedNow through using our tools. And there are hundreds more that are in the pipeline directly with us and with partners that use our technology. So that’s the U.S. side volumes on FedNow relatively low. We have seen an increase in the clearinghouse RTP utilizations. And I think that’s largely due to the attention that’s been drawn to real-time payments generally because of the Fed marketing. And that’s great, but still relatively small volumes in the U.S. But other parts of the world are seeing much more significant growth and we expect that to continue.
Operator: Your next question comes from the line of Charles Nabhan from Stephens. Charles, your line is now open.
Charles Nabhan: Hi. Good morning and thank you for taking my question. As we think about the go-forward run rate for Biller, could you talk about the degree to which the outperformance relative to the 7% and 9% target this quarter was driven by easier comps versus the layering on of new deals and incremental recurring revenue? And if maybe an accelerated pace of onboarding could lead to either outperformance or performance towards the higher end of 79% target going forward?
Scott Behrens: I don’t think when I referred to the comps on the earlier question, it really wasn’t about the top line growth of the Biller business that came in at 11% in the quarter. It was more around the interchange improvement. So if you look at a net of interchange, it accelerated and that was off of a tough comp last week. We had a lot higher interchange impact. So I would say it’s not as the business is going to continue to grow at an 11% rate. I would look at it more in the upper single digits going forward. So we did have a large customer go-live here in 2023, but that customer is not fully ramped. That’s just fully ramped in early 2024. So that’s really when we look at 2024, that’s a part of our comfort in the 7% and 9% total is business that we’ve already sold and it’s either live and ramping or will go live in relatively short order.
