Timothy Chiodo : Thanks a lot. I want to drill down a little bit on the core PayPal modern checkout migration progress. The numbers you gave were great to 20 going to one third, going to 50% for gold this year with the top 100. Two follow-ups on that. The first is, could you talk a little bit about the conversion uplift that you see when the new modern checkout experience is integrated there, and that would help us to kind of quantify what one third going to 50 in could mean? And the second one is, can you talk a little bit about and recap the actions that you’re taking to help incentivize that? Clearly, it’s a win-win for both you and the client. But what are some of the either financial or people resources that you could allocate to help speed things up?
Daniel Schulman : It’s a great set of questions. So when we put in the latest checkout experiences, it’s anywhere from a low of a 3% lift in conversion up to a 10% of lift in conversion. So that’s actually pretty meaningful in terms of what we see. We also see in our latest checkout integrations that we’re growing our share there across mobile, across mobile web and desktop. And with the top 100, it’s an account-by-account play. They’re quite sophisticated payments teams. They have a lot of legacy integration. And clearly, the increases in conversion matter a lot and also the ability to seamlessly implement our Buy Now, Pay Later, which has the highest loss rates in the industry, lowest loss rates and a great value proposition is another reason for those top 100 plus to move forward on their integrations.
And we’re making good solid progress, as I mentioned, every single quarter there. Mobile SDK, same thing. Conversion rates up to 10%. We are now in developer portals. Our mobile SDK is a merchant requirement going forward, so no new merchant can come on without being in our most advanced checkout flows. In our mobile SDK, Buy Now, Pay Later will also be included in that in the second half, which is also something that our merchants are really asking for in terms of seamless integration of that. And then PPCP, we have Braintree, and that’s — when somebody signs up for Braintree, they immediately go on to our latest checkout experiences. I already talked about auth rates going up 390 basis points on average when that happens. But PPCP, that’s a big opportunity for us.
We’re going into a $750 billion addressable market that we’ve never been able to go in before. We’re going in both with our sales force direct into midsized customers and for that longer tail through channel partners. As I mentioned, we’re already working with Shopify on PPCP. In France, we are beginning integrations with merchants like Adobe and TikTok. And we feel that those channel partners, when we upgrade them to PPCP, they almost instantaneously will upgrade that long tail. And that’s, call it, 20% of our TPV out there. So we’ve got quite a bit of plans to address each part of the market with, I think, pretty significant detail around them and pretty significant movement as well.
Timothy Chiodo : Excellent. And thank you for giving the numbers on the conversion. I appreciate that.
Daniel Schulman : Yeah, you bet, of course. Okay. I think we have time for one more question.
Operator: Our next question will come from David Togut from Evercore ISI. Please go ahead. Your line is open.
David Togut : Thank you. Looking at your plans to reduce transaction margin pressure from Braintree over time by expanding it to more profitable segments, including downmarket to SMBs and PPCP, which you’ve talked about, unbranded full-stack processing with channel partners. Is there anything in your 2023 guidance that contemplates reduced transaction margin pressure from Braintree? And if not, when would you expect some of these initiatives to alleviate that margin pressure?
