Unidentified Analyst: Okay, no, I appreciate that. That kind of leads to my second question. It’s on the larger merchants, over 500 or over a million. You mentioned, $500 is an example, but maybe bigger picture, even medium to longer-term. How much do you think you can extract out of, out of your best merchant in terms of ARPU like, where do you think it can go?
Jean Paul Chauvet: Yes, I think we’re early days, frankly. So I think just look at a customer to the 10 million of GMV and add payments in there and you’ll see that basically the software becomes a small fraction of whatever they’re paying. And I think that’s why, we’re doing Unified Payments. But I think that’s, that’s where we are tested. If you look at the basket, we look at all the tax [Ph] that these customers are buying. And we think there’s room to go well above a thousand bucks a month, just for software for those higher output customers. So and that’s per location. So there’s a lot of room to grow. One thing is certain is we are, and I said that a number of quarters, but we are doubling down the high GMV merchants all the way from marketing to onboarding, to supporting to how we position ourselves.
We are going up markets, and that is really good for Lightspeed because ARPU is much higher, and we’re seeing it actually. The new customers that are drawn like we have a much higher ARPU than in every quarter the ARPU seems to be growing. The new platform command the much higher ARPU. So we are doing what’s right. We know that we could, we could get some much higher levels than we have today. And the first step for us is, as we said, is Unified Payments, because that really moves the needle quite significantly, especially for the high GMV merchants.
Unidentified Analyst: Got it. Aappreciate the color, JP thanks.
Operator: Your next question comes from Suthan Sukumar with Stifel.
Suthan Sukumar: Good morning. I just had a question here on, and merchant growth, you saw — felt the solid double digit growth in larger merchants this quarter, just curious, has that been changed from a selling motion here for you guys, and also what are you seeing from the competitive intensity perspective as you know, as you continue to focus on larger merchants.
Jean Paul Chauvet: Yes, so I think the good news is the more, the larger the merchants the less the competition. Okay, that’s very good. If you, if you look at the larger merchants, none of the other cloud base competitors can offer what we do. So I think that’s why we’re really focused on that, because it has lower churn and higher ARPU and lower competition. We have adjusted our sales motion where now we’re working very tightly with the Google and the Facebooks of the world. So actually feedback GMV so that we can do a better job as if targeting them. And then what we’re doing now is we are creating cohorts of sales people based on the types of customers. So a more experienced sales people now are coming to higher GMV merchants, and if you just saw it likely you are probably going to start below a GMV merchant.
So we are equipping the organization in a way to just optimize throughputs of large customers and we’re very happy because it’s working. Anyway we look at it, we’re seeing, we’re seeing that we paid out slowdown, so get paid in a shorter amount of time listening close rate the range are strong and we are seeing ARPU really strong for new customers. So very happy with what are doing and I think again its – and it’s a dream that started what I think six quarters ago I think and it’s going to just continue improving as we go forward.
Suthan Sukumar: Okay, great.
Jean Paul Chauvet: I think we’ll take one last question.
Operator: Absolutely. And our final question will come from [Indiscernible] with Barclays.
Unidentified Analyst: Great, thank you. This is Jeremy on for Rymel [Ph]. I just wanted to ask on the Lightspeed supplier network, so understand that it’s not being monetized now. But has it sort of been like rolled out customers as a test used cased and if so could you share a little bit on what the feedback has been there? Thank you.
Jean Paul Chauvet: Yes, so when we look at the supplier network, the piece that is monetized is we work with the brand made by our software and then we become these fast forward to distribute their goods to anybody who wants to place an order. And including our competitors, including Big Box retails and SMB. So that piece has been in motion, it’s going well. The piece that is still under test is really the – I’m taking the brands and I’m connecting those brands to Lightspeed stores and I’m enabling the source to be way more efficient in how they operate. So it’s better going outright as a platform as they would now and IPOs and then receive half the goods because they don’t have anything in stock. What we are helping them to do is – we’re helping them first of all identify how much they should be ordering through an analysis of their self-through.
And then what we’re doing is we’re connecting that order directly to the brand. And then we’re enabling them to place an order from the brand looking at the inventory levels at the brand. And then finally what we’re helping them do is when they receive the goods, they have no work. They just scan the goods and the descriptions are there, the video, and that is really important for our merchants right now because, if you want to sell online and you want to sell across multiple channels, you need to have rich packages that describe the goods with videos and images and etcetera. And I know this sounds obvious, but the reality is, for this industry, nobody’s out there. And so, why am I saying this is that the test case we’ve done, we have a couple of hundred customers are using the full integration and the feedback we have from them is outstanding.
