Harley Finkelstein: So, in terms of Shopify Payments penetration, we’re at about the 58% right now. That is an all time high in penetration rate. And you’re seeing us onboard new businesses to Shopify that are using Shopify Payments, Banana Republic Home, for example, or HiSmile or Anastasia, these new brands that are coming on. In some cases, these are very, very large, businesses that are still opting to use Shopify Payments. We’re also seeing Plus merchants, SP or Shopify Payment penetration is actually higher than standard penetration. So, there’s a lot of opportunity there to keep going. As we bring more merchants on, more merchants will take it. But remember, one of the things that we think is a real lever to increase more merchants using more solutions from us generally, but specifically payments, things like Shop Pay or Shop Pay Installments or Shopify Balance or Shopify Audiences or some of the Shopify market features, like, foreign exchange conversion, you have to be on Shopify Payments to use that, and so we think we have a lot of opportunity there.
Second part of your question in terms of where are they coming from, when we see these much larger brands come on to Shopify, in some cases, they’re looking to modernize their entire technology stack, which includes their payment provider, and we are the perfect solution for that. In other cases, they may migrate over and they may have an existing contract with a previous payment company. Eventually, when those expirations happen, we do see them, for the most part, moving on to Shopify Payments. It’s a better product. The pricing is incredibly competitive. And as we scale, there’s really no reason to use any other payment provider, if you can use Shopify Payments than using it.
Carrie Gillard: Our next question will come from Matt Pfau at William Blair.
Matt Pfau: I wanted to just ask on the AI features that you’ve recently released. And if you’ve noticed a discernible benefit to your business from these as customers have begun to leverage them and then also any learnings on how to potentially monetize some of these features? Thanks.
Harley Finkelstein: Yes. I mean, two ways. First of all, we ourselves are using AI inside of Shopify to make better decisions, but also for things like our support team using it so that questions like domain reconfiguration or a new password or I don’t know what my password is. Those things should not necessarily require a high touch communication. What that does is it means that our support team are able to have much higher quality conversations and act as business coaches for the merchants on Shopify. So, we’re already using it ourselves. But in terms of AI for our merchants, remember, AI has really been a part of the story for a very long time here. If you kind of think about commerce and Shopify, we kind of interact at the intersection of humans and technology, and that’s exactly what AI is really, really good at.
So, we think we’re uniquely positioned to harness the power of AI. And the ultimate result of it will be these capabilities for our merchants to grow their businesses. We also think that AI is for everyone, and it could add real value specifically to retail. Now unlike other AI products, the difference with Shopify Magic is it’s designed specifically for commerce, and it’s not necessarily just one feature or one product. It’s really embedded across Shopify to make these workflows and our products just easier to use. It makes it easier for merchants to run and scale their businesses. And, of course, we think it’s going to unlock a ton of possibilities for not just small merchants, but merchants of all sizes. And, we’re going to continue to work on that over time.
It’s just going to get better and better.
Carrie Gillard: Our next question will come from Samad Samana at Jefferies.
Samad Samana: Thanks for taking my question, and great to see the strong results. Maybe if I could ask on Shopify Markets and Markets Pro, the two products, especially with Markets Pro going GA. The company currently is doing 15% of transactions cross border. How much of that do you think realistically could at some point be processed through Markets or Markets Pro? And if it’s not being done that way, where is that 15% being processed today by Shopify merchants? I’m just trying to understand the opportunity and how they move over to the product to add more value for them and allow you to monetize them better as well.
Harley Finkelstein: Look, on the international side, as Jeff mentioned in his prepared remarks, I mean, we’re seeing growth in the UK, Germany, France. GMV is growing 2x faster than global GMV in Q3. We want to make selling internationally on day one as easy as it is to sell locally. And both Markets and Markets Pro are doing just that. And Markets Pro, as you heard, is now in GA in Q3. But the focus and the strategy is really to continue to localize products to implement these important commercial initiatives to make it much easier for merchants outside of North America also to start and scale their businesses. And in terms of where that’s coming from, I mean, Markets has been out for a while. That really gives merchants the simple tools to launch localized products.
It includes really essential features for international selling. And then, if you want to really — Markets Pro is really where — if you want to take one of the most stressful and time consuming elements of international transactions out of your day-to-day, Markets Pro is the right thing for you. It’s a fully integrated merchant of record solution. Since the rollout, the product has become one of the most — one of the world’s fastest growing e-commerce merchant record providers and it’s only going to get better over time. We’ve introduced things like foreign exchange hedging, express international shipping, tax compliance. And now merchants like MrBeast and WOLFpak and Made by Mary, very large merchants are already using it. So we’ll continue to see that rollout over time.
But Europe is going really well for us. The rest of the world’s going well for us. And it’s not just getting more merchants internationally to use Shopify. It’s also getting existing merchants to increase their GMV by making it really easy to sell at every part of the world.
