We have two main focuses in this area. One is commercial point of sale, and the other one is our B2B accounts payable business. Commercial point of sale, now this is a tremendous total market opportunity, massive TAM out there, and it’s likely penetrated by cards today. The way we look at this is, this isn’t really about building new systems. This is about penetrating with the tools that we have today, targeting SMEs and corporate T&E, purchasing fleet, all of that with our existing capabilities that we have plus our complementary solutions like smart data and easy savings and so forth. So a lot of cash and checks out there, a lot of opportunity with cards that we have today. So we leverage that. We built out a separate vertical in the company.
We’re focusing hard, and we’re seeing the growth rewarding us for that. On the B2B side, this is accounts payable, trusted relationships, this is invoice payments and so forth. This is an even larger TAM with a lot of clear pain points. Companies are looking to automate these processes, digitize these processes, get rid of the paper. And virtual cards is a solution that works tremendously well. We — as I called it earlier, we are the leaders in virtual cards. But the solution isn’t perfect. So we invest a lot of energy through our product teams to make it better and better. What I was saying earlier on Receivables Manager, this is a way to automate the acceptance of virtual card payments, build it into the accounts receivable system, automate it to get the benefits of virtual cards without some of the manual processes that we have to go through over the past year.
So this is a real breakthrough. This business is going to be hugely important for us going forward. We called it out in November 2021 at our Strategy Day. It’s one of our biggest growth opportunities. We feel we’re ahead in the market, and we’re seeing the healthy growth. And that will be remaining a focus for us.
Operator: We’ll go next to Ashwin Shirvaikar at Citi.
Ashwin Shirvaikar: Good quarter guys. Michael, since you said Sachin’s not getting enough questions, maybe I’ll ask a numbers question.
Michael Miebach: Yes, please.
Ashwin Shirvaikar: So I wanted to figure out sort of the cadence of operating expense. 3Q versus 4Q, it sort of looks like — it looks like you’re kind of exiting the year a little bit higher than the 3Q levels in terms of growth. So what’s causing that as well as — I know your cadence of spending tends to be longer term in nature, but are there product or service call-outs in terms of the types of investments that you’re making that’s most pertinent now?
Sachin Mehra: So look, what we shared with you is our thoughts around what we think operating expenses look like in the third quarter. And I’ve given you what the full year numbers — or what our expectations for the full year numbers are. So I think you can kind of back into what our operating expense growth rate is going to be or is expected to be in the fourth quarter. There’s nothing unusual going on from an OpEx standpoint in Q4. Honestly, I would tell you, if you look at it on a year-over-year basis growth rates, when you back into those numbers, you’ll see there’s nothing really unusual going on there. Broadly speaking, on OpEx, here’s what I would say. We continue to remain focused on driving our operating expenses in what matters.
