Jean Paul Chauvet: Yes, I think the only comment I can make, this is not a short term. We’re not here for the short term. I think you have to be careful when you just jack up prices, just because it’s a fairly easy exercise. To grow revenues by just increasing, increasing fee in a way that’s not, that’s not accessible to the customers. So I think for me, the feedback is we have to be cautious, and we, we look at our customers as a long-term relationship. And so we have to, we have to act well, especially in the context of Unified Payments. We want our customers to know that we will not, because I think it’s a question of power. Once you have the power and you do everything to the customer, you have to behave well, and I think for us we just have to be cautious in how we do product increases, and they have to be reasonable. Because if not the customers are going to react very poorly to that.
Tien-Tsin Huang: And it’s fair. Thank you.
Operator: Your next question comes from [Indiscernible] Capital.
Unidentified Analyst: Thanks guys, for taking my question. Maybe just one on the unified offering. Are you fighting — in the new product development that you guys talked about this quarter? Can you give us a sense of how the unified platforms are now kind of helping you across up some motion? Are you finding that customers are much more recipient, recipient to it given this tougher macro in terms of labor and everything around that?
Jean Paul Chauvet: Absolutely. So actually, the reason why we launched Unified Payments when we launched it. When you look at the market, basically, prices are going up, cost of labor is going up, costs of goods are going up, margins are tightening. And the only way out for our customers is to do more with that. And that is really the main driver of Unified Payments is we are helping our customers face time. And we have numbers like productivity gain of 20% in some instances of customers. So the idea of Unified Payments is to say, it’s one solution. So when you’re, if you’re a clerk and you’re selling or you’re a waiter, you don’t have to, pull out multiple things. Everything happens within one environment. And I think when you look at the back office capabilities also, when you look at the reporting and you look at — if you have two payments.
If you have a payment platform and if you ask, you need to consolidate those Excel sheets and figure out where the funds are going, whereas we give you a simple report at the end of the day. So time saving everywhere you look, productivity gain, wherever you look. So I think that’s really what’s driving our customers to this. And the last piece is access to funds. So we have a number of derivatives products that are using Lightspeed payments. The first one is capital, once you’re on Lightspeed payments, we underwrite you for capital so you can have access to capital. That is a big win for them and our customers. And I think the last one that comes to my mind that is really important is our insights engine. Our advanced analytics or insights platform.
That uses payments to give insights that they’ve never seen before. And by the way, we just launched it now in Europe, insights with GDPR or helping our customers comply with GDPR, sorry. So all of the products that are really good and are really helping our customers with productivity and understand how to run a better business. And we are deriving a lot of products that are using payments at the core.
Unidentified Analyst: Excellent. Thank you. And for my second question, just on the customers who have immediately opted for the 50 basis point transaction fee. And do you see an opportunity in the future to re-engage those customers to kind of keep the conversation going? Or is it more of kind of like a one and done and then you guys kind of leave it alone?
Jean Paul Chauvet: No, no, no. It’s an on-going. And I think that’s really, when you look at our, when you look at Unified Payments. Every customer that goes under — we don’t have time, we’re paying transactional look at this later etcetera. Those are the customers we really want to bring on space. A lot of our customers are just using the transactions because they don’t have time right now. They think it’s the wrong time of the — if I’m a restaurant that I’m in France and you’re all my money in summer at the beach. Well, I’m not going to use likely payments, I’m going to pay transaction fee. So what we’re trying to do at the end of the day, we do not want any customer to pay transaction fee. We think that is not the right way to run the business.
So we’re doing everything we can to bring them on to Lightspeed payment. So as soon as they take it, you have a whole set of people that are calling them and trying to work out time for them to bring them on to Lightspeed payments.
Unidentified Analyst: Thanks so much.
Operator: Your next question comes from Kevin [Indiscernible] Bank. Your line is open.
Unidentified Analyst: Hey, hey there. Good morning. I had a question. Couple questions on software. You mentioned that the cohorts under 200,000 are 5% of GTV. Any sense of how much of your software revenue they account for?
Asha Bakshani: Hey Kevin, thanks for the question. We haven’t typically disclosed the percentage of software revenue from that cohort. The way we look at our customer cohorts are total, the total net revenue that we get from the customer. And when we look at it from that perspective, the ratios are quite similar from the GTV, right? Because obviously the larger GTV customers with payments and payments is embedded now into our platforms, the larger GTV customers with payments obviously is very representative of the split. So that’s typically how we look at it. In a typical customer, if I just gave you an example of a very small customer, we have customers that are paying us 50, $50 in ARPU a months on software. We also have very high GTV customers that are paying us $500 a month in software. So really, it’s really difficult for us to just cohort those customers, because even in the over 200,000 bucket, there’s quite a large range.
