Leland Strange: So what’s the big variable is professional services and —
Matt White: Related to development.
Leland Strange: Which is development and other things that might be platform related from their standpoint, things they want to see done. And that that could end up being from $300,000 a month to $1 million a month. So it’s very much more variable so that they want to keep it down on the lower side now.
Hal Goetsch: Okay, okay. More on–
Leland Strange: [indiscernible] by the way. Part of what you’re doing is not — necessarily not getting something done, but it’s just a request to slow it down, use fewer resources. So you extend the date for getting things done by using fewer resources and lowering the cost.
Hal Goetsch: Okay, okay. All right. And in general, it’s like card issue. I mean, if you look at Mastercard, Visa, even the AMEX, you know, these giant platforms continue to grow cardholders, you know, mid to high single-digit year over year. So the backup for card issuances globally appears to be really, really good. And just wanted to get your thoughts on banks that you’re serving, what’s kind of the risk appetite to continue issuing the credit right in this time period?
Leland Strange: I mean, you’re right. Card issuing is still growing. And I’ve said before that in a bad economy, you may see the number of cards increase and decrease. You simply see more delinquencies and you see maybe a smaller credit line, but you don’t ship your cards. And we typically get paid on number of cards. So we’re not concerned about the dollar value of what goes on in cards. We’re concerned about the number of cards. We don’t see any decrease in that. What we we do see is some of our customers that — or people that we talk to, they already have debit cards and we’re thinking about getting the credit card space, they are slowing down that process because they’re concerned about the delinquency side. But people who are already in the credit card space issuing more cards is not a problem as long as you manage the onboarding in terms of scoring, but there will be an increase in our .
That’s not slowing down. There’s a, I guess, opportunity to, again, I appreciate the question because it has kind of — chance to think about something else and that is number of cards. I don’t want anyone to take away from this, the fact that we’ve not had any license revenue since the first quarter of this year, which of course, does impact a lots, since that’s all profit. But that doesn’t mean that the Apple program has slowed down. Remember, Goldman has two programs. they Apple and General Motors. And the reason that we’ve had no more license revenue, we have shifted the fact that the way we did — we get paid on active card numbers. And active card members have different definitions for different folks in the business. If you were at , you may have one definition for active cards.
But then you get also get paid for inactive cards. But this is a licensed deal with Goldman, so we don’t get paid for inactive cards. We get paid for active cards. Now the active card definition says, if a card is not a hit by some system, meaning somebody went to change the address, they went to make a purchase, they went to change credit limit. It didn’t really have to be a purchase, change the open-to-buy limit. That’s still active if you do that with a certain month period, right? You define a month, but let’s say it could be three months, four months, five months, six months of it. So they discovered that they were hitting a lot of cards — made more cards for things that they didn’t really need to hit them with, probably by with an API.
