The third portion of this is how fast our merchants reprice under a devalued scenario to protect the dollar value of the digital services that they are offering. So, all in all, financially hedged, and then what the impact of the deval is, shorter-term will depend on those variables, and it’s not that easy to predict beforehand.
Guilherme Grespan: Okay, super clear. And on the G&A?
Diego Cabrera Canay: So, overall, we see G&A expenses stable quarter-over-quarter. I don’t know if you refer to a specific line item, maybe we can take it offline, but overall G&A, we see very stable quarter-over-quarter.
Sebastian Kanovich: Guilherme, if I can complement on the previous question, the remark that Pedro made. I know Argentina, it’s tough news. We’ve all seen the elections. We operate across 40 markets. Argentina represents less than 15% of our revenues. And we believe that the worst is behind us in Argentina. So if anything, there’s upside to be had from that country. But at the same time, the beauty of our business is that you can have Brazil kick me at very fast speed; Mexico, Egypt, Vietnam, Indonesia, Saudi, Kenya. So the reason why we built a business that operates across 40 countries is exactly to have natural hedges in our business and have multiple growth levers. Some of those levers are going to be faster in given quarters and others are going to be slower.
But fundamentally, we have built this business to be reliant — to be resistant to any particular crisis across any particular market. And I think you’ve seen that effect. We’ve gone through many crisis across many geographies and our business continues to operate at scale and continues to be able to grow. So I don’t want to lose sight of that fact, which I think it’s key.
Guilherme Grespan: Okay. Thank you.
Operator: Thank you One moment for our next question, please. Our next question comes from the line of Kaio Da Prato with UBS. Your line is now open.
Kaio Da Prato: Hello, thank you for taking the question. Two quick on my side, please. First, in your presentation you mentioned that e-commerce has become your main vertical and Pedro also did mentioned about the launch of the platform Solutions last year that is supporting this level of growth. So just would like to better understand here what explains this growth after the launch of this feature. If there is any competitive advantage in this platform solution, what are you doing differently from your competitors in the business? And also, if you can share after the launch, how was the evolution of the share of wallets of your main e-commerce peers? And then my second one is in terms of your cash position. This quarter, we saw a reduction in your cash due to lower settlement period, again, for certain merchants and you also mentioned the repatriation of outstanding loans.
So just would like to know if you could share a little bit more details on both reasons behind that, especially on the reduction of the settlement period for certain merchants. Why did that happen this quarter? If it was a one-off or if it did change somewhat the profile of your working capital going forward?
Pedro Arnt: Let me take the commerce one. So, yes, the platform solution, which is not only for commerce, by the way, right, but was part of the story behind the stellar growth in the commerce category. It’s not the only explanation. We have many commerce merchants that grew very well in the quarter. I would say that there are competitive advantages to our solution in that our solution has been tailor-built for the markets where we are offering it. And that has been one of the reasons why we have seen very large global marketplaces, either increase share of wallet through our platform solution or in some cases, fully migrate away from competitor solutions onto our solutions, driven by a very strong adaptation of the platform to their needs and to the local realities, both in Brazil and Mexico.
Specific numbers on share of wallet, we don’t know. But like I said, we do know that in one instance, there was churn away from a competitor, and in others, given the growth in volume, we are receiving an overwhelming portion of their platform volumes in those markets.
Diego Cabrera Canay: Regarding cash flow and settlement periods. So, during the quarter, we had some negotiations of terms with a few merchants, large merchants, particularly in Brazil. They had higher than average settlement period and much higher than our collection period. So part of their transition of the terms was a reduction of those days that we pay. We were paying roughly 30 days. Now we’re paying approximately 15 days to those merchants. That has a one-off effect that you see in the cash flow of around $60 million. It doesn’t continue going forward. And it’s important to point a couple of things. One, we keep our negative working capital for merchant funds both on a total level, but also on a merchant-by-merchant level.
