We’ll talk about it clearly on November 15. I also think, when we look at FIs in total, which is the way ultimately we look at it, when you look at how we’ve performed in Fintech and Payments, if you want to think about it that way, we’ve been very, very strong. The ability to bring our surrounds, that’s probably a year-to-date 7% number. We’ve been able to bring our surrounds in our banking platforms, and that’s really what attracts the new book, so to speak. So we’re in deep dialogues on big deals. And I have not seen a slowdown in banks’ appetite at all for the things we have.
Tien-Tsin Huang: Terrific. Thank you.
Operator: Next, we’ll go to the line of Jason Kupferberg from Bank of America. Please go ahead.
Jason Kupferberg: Good morning, guys. Thanks. So on the Acceptance segment, it doesn’t sound like your Q4 guide is really contemplating any material change in the trajectory of overall consumer spending. I was hoping you could maybe give a little insight into what you’ve seen in October, both with regard to volume and transaction data ex-wholesale versus September, let’s say? And any shifts in discretionary versus nondiscretionary spend categories in the past month? Thanks.
Robert Hau: Yes, Jason, overall, so far, what we’ve seen in October is very similar to what we saw through the third quarter. Consumer continues to be quite resilient. Quite frankly, I’m tired of using the word uncertain. We’ve lived in a pretty uncertain environment for the last 3-plus years and probably a lot earlier than that. There are certainly some verticals within our overall merchant book that are softer than others. Roughly half of our merchant volume is – or merchant revenue is discretionary – in nondiscretionary, so we’re nicely balanced there. We’re certainly seeing some softness in retail. The restaurants continue to be quite steady. So overall, obviously, we’re very early in the quarter. And as you know, holiday spending in December month is a big part of the quarter, but so far, right in line with what we saw in Q3.
Jason Kupferberg: Okay. Good to hear. And just on the Fintech segment, it looks like you need to see maybe a little bit of organic growth acceleration in Q4 against a bit of a tougher comp to get to the low end of that 4% to 6% guide. Can you just parse out some of the drivers there and your visibility on that?
Robert Hau: Yes. I think in order to reach the low end of that guidance that we talked about, the low end of the 4% to 6%, we’ve got to repeat the 6% organic growth that we saw in the fourth quarter. To your point, yes, it’s against a tougher comparison in Q4 versus Q3 of last year. Obviously, we’ve got some implementations. These are long-cycle implementations. And as those go live, you get some ramp on that revenue, and that does take time. So some of it went live in Q3, and we’ll see acceleration into Q4. We’ll see new clients going live in Q4. Obviously, there’s ongoing swings or variability in the periodic revenue in order to deliver that 4% on a full year basis. And I think as Frank pointed out, our financial institutions clients look to us for a broad suite of software and services, and the combined Fintech and Payments business, which is really where we go to market with our financial institution clients, is up 7% organically on a year-to-date basis.
Pretty steady, stronger Q1, a good Q2, good Q3. We expect to close out the year at that rate, that level. And overall, financial institution clients continue to look to us to provide services, and anticipate that continuing in fourth quarter and into next year.
Jason Kupferberg: Thanks, Bob.
Operator: Next, we’ll go to the line of Dan Dolev from Mizuho Securities. Please go ahead.
Dan Dolev: Hey, great quarter. Congrats. I was particularly interested in the Melio partnership. Frank, can you maybe give us some more color, if you think like 2, 3 years out, how could this change the way people think of Fiserv in terms of kind of its B2B capability, Zelle, all the projects that you’re hopefully planning to do with them? Thank you.
Frank Bisignano: Yes. I’m not – I’m thinking if I necessarily want them to think about us change or think about this is who we are, the ability to distribute great capability to our outstanding client base. And I want to make the point that this product works really, really well with our bill pay CheckFree product and allows us to go to our SMBs exclusively in the FI channel with it, and allow our banks to actually, ultimately, have a new offering that will increase their fee revenue and in fact increase our revenue. So I think it’s solidifying our position in SMB. Yes, it will also be distributed to our ISV clients and our Clover clients. But there are many clients that do not receive payments via card, and this is taking something to the whole swath of them that we did not have.
You should expect us in market in the summer of ‘24 on it. And once again, we’re helping our bank partners bring more product and grow their revenue, much like we do in the merchant business, and we’re adding to the stickiness of our SMB portfolio.
Dan Dolev: Great. Thank you, and congrats again on the amazing quarter.
Frank Bisignano: Thanks, Dan. Good to hear from you.
Operator: Next, we’ll go to the line of Dave Koning from Baird. Please go ahead.
David Koning: Yes. Hey, guys, great job. And maybe on just the merchant acquiring industry, there’s been the fears of commoditization. But if anything, you’ve shown the strongest growth in years, your yields have been going up, not down. But what about churn? Like have you seen noticeable improvement in churn or retention really over the last few quarters as well?
Frank Bisignano: Yes. But I think it’s good to step back for a second here because we’ve been in a multiyear transformation that has allowed us to produce what we’re producing today. That would include Clover. That will include building a business in Brazil. That will include bringing Clover to Argentina, right? So there’s a lot of dimensions to how we are where we are. The ability to drive ARPU in our base, we get a wholesale processing business, which we talked about being $1 billion of revenue and flat, but that business is like 40% of our volume. In that core direct business that we continue to grow, you should continue us to bring more product in and just make those relationships stickier. And what we see is when we have 3 to 4 products in a client, the churn is best-in-class. And that’s why we’re so focused on ARPU and more clients. Yes, in single-dimensional clients that aren’t Clover, you see higher churn.
David Koning: Great. Thanks. And one quick follow-up. What was the Q2 number for – with Q3, the volume ex processing of 6%. What was that number in Q2?
