So hey, let’s just say, I’m a supplier paying $10000 in bills. And it’s a — qualifies for I’m going to take you into the weeds a little bit Brian on the way interchange works. But just Level 2 interchange which is typically achievable on a B2B transaction clears just around 2%, let’s say, add a modest amount of fees for processing and you’re looking at 2.25% of total cost to pay those $10,000 in bills. But they have a rewards card that pays them cash back. And let’s just keep the math simple of 1.25% — let’s call it 1% okay? So my net cost is 1.25%. The standard payment if I use my credit card by the time it shows up on my bill and then I get my 30 days to pay my bill is 56 days. Now most larger companies actually have more time than that but let’s use this 56-day standard for our mathematical example.
So my net cost of the 2.25% minus 1% cash back is 1.25%. Well at the current interest rate 56 days of cash that I don’t have to pay my credit card bill, let’s just say even invested in FDIC insured deposits at 5.5% is slightly over 90 basis points, right? So my net cost in working capital, right? You’re down around 30-plus basis points over a two-month period annualize that exceedingly low. And you’re talking about under a couple of percent in terms of cost of capital if you’re doing that every month. So, it’s very attractive in this environment, to utilize that credit that’s already available to businesses that they may not be maximizing. So, that’s very specifically, how we see this being implemented across not just the B2B segment B2B payment segment CPX, but more broadly across the SMB segment of our business where we have nearly 260,000 active customers.
And look 70% of small businesses struggle, with working capital. So we think that this is the time for this feature, this product within our broader platform of Unified Commerce, to really come to the fore. And that was a big driver of, why we pursued the acquisition when the asset became available to us.
Brian Kinstlinger: Got it. I have one last question and I’ll get in the queue. It’s just back at the payments business, the consumer payments business. Again, if I look at the average ticket size, it’s meaningfully down from again, the last many quarters when you could say the economy was weakening. It was not. Is there any different? Is it a weaker consumer, or is pricing coming down? Why would we see the average ticket size be 10% off from where it consistently has been for so many quarters?
Tim O’Leary: Yes, Brian. So I think the main impact there is, some of the volume shifts and thinking about the mix, right? So, part of the volume that declined during the quarter was a much higher ticket right? So, different verticals tend to operate with much higher ticket sizes, professional services and other areas. And some of the volume declines we saw especially, from the large reseller partner came from some of those areas. So that mix shift impacted the average ticket size. But I think if you looked at a kind of same-store sales aspect of kind of thinking about like-kind business, we really haven’t seen much of a change in the average ticket size, right? We’ve seen a little bit of a benefit in certain areas from the inflation in the broader market, but what you’re seeing on the average, ticket size across the entire enterprise is really driven by a little bit of a mix shift.
Brian Kinstlinger: Okay. All right. Thanks so much.
Operator: The next question is from Jacob Stephan of Lake Street. Please go ahead.
Jacob Stephan: Yes. Hi, guys. Thanks for taking my questions. So when I look at the B2B segment, do you feel that this business has kind of stabilized, just talking about the base business here around that $3 million level? And how can you see that business expanding? Is it Plastiq becoming more of the — a bigger part of the package, or what are your kind of growth expectations for the base business here?
