But I think the exciting more unexpected result is that we think it’s going to transform our value proposition as well. things like enabling us to look into all of our transactions, look at early fraud metrics to be able to feed that back to customers with early fraud alerts that assured them that we are protecting them, enabling them to add more and more financial instruments to us as well that we can protect this PayPal assistant that’s going to — that’s really an AI chatbot. We’ve been using it internally inside our consumer app. It’s pretty amazing what it can do. Obviously, our advanced checkout, things like customized rewards. So AI is going to be a thing that not only drives productivity improvements for us, but really importantly, value proposition improvements for us.
And so we’re surgical on our cost thing. We’ve been very disciplined in it. We’re quite pleased with it, and I think we’ll see productivity improvements over the years to come.
Gabrielle Rabinovitch: Yes. As Dan said, we’re on track for a 10% decline in our other OpEx for the year. The first half is down kind of low double digits, call it, 11.5%, 12%. In the back half of the year, of course, we begin to lap some of the cost savings that we began to take out last year. And so the decline in other OpEx declines a bit, and so we’ll be in sort of the high single digits then, building on what Dan said, just around delivering better experiences to our customers and the productivity gains, it’s also coming from the platform migration and consolidation work that we’re doing. And that too allows us to scale more efficiently over time. And so you should expect to see us continue to look for ways to deliver better experiences to our customers and scale them efficiently on our platform.
Operator: Your next question comes from the line. Sorry, we have time for one last question, and it comes from the line of Bryan Keane with Deutsche Bank.
Bryan Keane: Question here. I wanted to ask about the consumer value prop and a big piece of that is going to be the wallet and the enhancements of the wallet, including offers. Can you just talk about some of the initiatives you’re doing there that’s going to improve the digital wallet going forward?
Daniel Schulman: Yes, sure. Thanks for the question. I mean, obviously, increasing the number of consumers who use our digital wallet. It’s one of our most important initiatives because we feel it’s going to drive both engagement ARPA, monthly active users — the app user today, the typical app user has a 35% greater ARPU, 60% greater TPV and 25% less churn. And so the more we can put on that, the better and about 55% of our base today uses the app, just to give you an idea of that. And the app to your point, is designed to — it’s designed to enable the full shopping experience from discovery, which is like the deals and offers that you just mentioned to flexible payments, the widest array of funding choices, things like biop later, split tender that enables you to utilize 2 different funding sources to buy your purchase to post purchase, which includes package tracking and returns management, refunds directly into your PayPal wallet.
I won’t go in again to all the experimentation we’re doing, but you can see kind of the tremendous amount of velocity there. The new features that are coming into the wallet include this early fraud alert. We’ve scaled that now to 10% and that’s really designed to protect our customers. We can see fraudulent signals well before others. We can let a consumer know that their card has been compromised. We can simultaneously let the FI know so that card can be reissued instantaneously. And so we’re seeing early but really positive response to consumers from this, and it causes them to defend these alerts that come that causes them to open the app, the more they open the app, the more they do with us. I think I mentioned on the rewards cashback that will be something that we’ll be putting some resource into because we’re seeing a tremendous interest in it.
These users are up 20% quarter-over-quarter and the is gigantic improvement. As I mentioned, about a 32% improvement on that. Package tracking, we’re now 100% ramped across iOS and Android. It scrapes basically your Gmail account to look for any of your e-commerce orders. They don’t even have to be through PayPal. We consolidate them all into one place into our PayPal app. We’re seeing a 20% app engagement uplift for those who sign up for that, a 10% improvement in TPA. Things like savings, that’s now at a 4.3% interest rate. When somebody does that, their ARPA goes up $26 and they’re logging to the app is up 16x those who don’t have a savings account with us. I mentioned by not later preapproval, that’s $50 million more to come this quarter in the EU.
And we’ll start things like our advanced AI checkout with our first clients later this year and our PayPal system using AI technology as well. Those are just some of the things to come. There’s a lot of innovation. And as I mentioned, my hats off to the team because I think they’re just doing a great job hitting their schedule, doing constant experimentation and really making our experiences much improved and moving towards best-in-class — so thanks, everyone, for your great questions. I really appreciate it. I want to thank everybody for your time, and we look forward to speaking to all of you later. So take care. Thank you.
Daniel Schulman: This concludes today’s conference call. Thank you for joining. You may now disconnect your lines. +
