Bea Ordonez: Thanks for the question, Mike. Look, we’re not really sort of viewing it as sizing of particular in quarter impact or not, certainly the third quarter has impacted the fourth quarter too. But as John was sort of getting at, we view our pricing strategy and our progress towards that as really a multi phase rollout of just a much more customer-centric and segmented approach, right. And it has a number of prongs. One, it’s around sort of bundling products that better serve needs, which has sort of — the benefits of driving kind of shared wallet gains and adoption, while also potentially reducing our cost to serve because we’re not offering customers products they don’t need that potentially have higher kind of costs associated with them.
It’s around kind of driving adoption of some of those higher value products that we’ve talked about by bundling and taking a more nuanced approach to pricing. So overall, we view this as a multi phase rollout, frankly, over many quarters. We’ve seen tremendous success. I think already we launched as we talked about in Q2. Account fees that we waive at certain volume levels and they’ve been very successful in monetizing some of those smaller or long tail customers. And as we said, we really haven’t seen meaningful churn there. We’ve launched in Q3, as John noted in his prepared remarks, fees for small transactions, which have also been very effective. We’re looking at our FX pricing. As an example we talked a little bit about that customer specific light account offering.
So it’s part as I say, that kind of multi step approach. And we’re going to continue to kind of roll out and test sort of different pricing models and bundling models to ensure that what we’re doing makes sense for the business that we don’t see any unintended frictional, or impact to customer behavior. So that includes registration fees, which we’ve been testing, that includes fees [indiscernible] that in network volumes that we see in our platform. We talked at Investor Day about the almost $10 billion of intranet workflow that we see coming through our platform. And that close to half of that is cross border today. We don’t monetize that. So we’re looking at all sorts of aspects, and really ensuring that we do that with the customer segment and their needs in mind.
Mike Grondahl: Okay. That’s helpful. Thank you.
Operator: Our final question comes from Josh Siegler of Cantor Fitzgerald. Josh, the line is yours.
Josh Siegler: Yes. Hi, guys. Good morning. Thanks for taking my questions today. First and foremost, with the increased free cash flow flowing into the business, I was wondering if there’s any updates to how you’re thinking about capital allocation moving forward?
Bea Ordonez: Sure. Look, I mean, we see a tremendous opportunity in front of us, as we outlined at Investor Day, to capture and grow in a very significant market opportunity that serves SMBs in the markets in which we operate. So first and foremost, we’re going to continue to invest in that opportunity and our go-to-market apparatus, in our platform to position us to best capture that organic opportunity. We talked about M&A, and that’s certainly part of the long-term trajectory. We think given our distribution, given our unique assets, given our brand and our positioning in these local markets, that there are more services and more products that we can integrate into our financial stack to drive off to drive revenue overall.
And then, of course, look, we’ve allocated 25% this year of our overall interest income to close to $55 million or $60 million to returning capital to investors. That’s our target for this year. And I think it’s fair to say that over the long-term, we would look to add a minimum offset dilution from our stock based comp plan by using that share buyback plan. But overall, look, we’re really excited. This is a strong cash flow generating business. We see tremendous opportunity, both to grow organically, drive more leverage, drive more efficiency and capture more opportunity while being balanced and returning capital to investors as well.
Josh Siegler: Great. That’s very helpful. And then Bea, I think you mentioned that eCommerce volumes performed better than expectations. I was wondering if that tailwind might continue into 4Q, especially given this collaboration with Etsy going live?
Bea Ordonez: So just — specific to Etsy, we’re very excited to have that deal sort of signed. And we’re looking to onboarding this. There’s no material volume of revenue anticipated from it. It takes a while to ramp up these relationships at ’23. That’s a ’24 event. From an overall ecom perspective, look, we came into this year thinking high single digits was a good number. We’ve seen ecom, I think you would agree as well outperformed that sort of overall. And I think so far October is in line with that and we’re seeing outperformance in that ecom bucket. So at this point, I don’t see any reason to expect that that wouldn’t continue. We are though seeing that mix shift into those larger sellers. Something that I think Amazon kind of talked about in some of their remarks or Q&A around consumers becoming more price conscious and moving their buying preferences to those larger sellers.
So we are seeing that mix shift as well. So the [indiscernible] is a revenue isn’t as strong as the volume performance overall. But we’re excited to see that volume come into the platform.
Josh Siegler: Great. That’s very helpful. Thanks again, and congratulations on the execution this quarter.
Operator: With that, I’ll hand back to John Caplan, Chief Executive Officer for closing remarks.
John Caplan: Thank you, everybody for your questions and for joining us this morning. I’m confident about Payoneer’s opportunity, and we appreciate our shareholders continued support. We look forward to speaking with all of you again next quarter. And with that, thank you.
Operator: Ladies and gentlemen, this concludes today’s call. Thank you for joining. You may now disconnect your lines.
