Jagtar Narula: So I would say the increase in the interchange rate, Mobility was a mix between the tailwind of interest rates and also price negotiations we’ve had with merchant vendors where we’ve been able to improve price, and Melissa talked about pricing optimization earlier. So it’s a combination of the two. We expect next year, I’d mentioned the assumptions around 5 quarter point rate reduction. So we expect that to be a slight drag on Mobility revenue next year. The way I think about it is 100 basis point movement in rates on an annualized basis is about a $50 million impact on Mobility revenue. So that’s the way I would model it.
Operator: Our next question comes from the line of James Faucette with Morgan Stanley.
James Faucette: Just a couple of follow-up questions for me. First, within mobility and the fleet business, can you talk about what you’re seeing on the same store basis, and what are the drivers there? And can you give us any color on how — what bearing you might be seeing across customer sets?
Melissa Smith: In the fourth quarter numbers, we saw a negative 1.5% same store sales in North American fleet and a negative 2% over the road on same store sales. I said this earlier, but one of the things that we’re curious about is whether weather had an impact on that. So we’ll see how that plays out in the course of this year. Because it was pretty broad brush, it was — if you look across the various SICs, it was pretty much the same across every category, which is unusual. And so from our perspective, we think that was probably more weather related. On the over the road side we continue to hear from our customers the same things have stabilized, they’re coming off a better comp. But they’re not anticipating to seeing a big rebound anytime soon and that’s what we factored into our guidance, just this idea of stability.
James Faucette: And then just — like I know it’s small and super early, but just since you launched the venture capital fund, I always think that, that’s kind of an interesting opportunity and exercise for WEX. Just any early views or learnings as you start to go down that and the types of potential investments that you’re looking at?
Melissa Smith: For us to reinforce the idea that it was the right path. We’ve got a lot of early stage companies that are out there, many of them are pre-revenue and it’s given us an ability to learn in that marketplace without putting a lot of capital into it. And so far, I would say we have made just a few investments. The companies that we’ve invested in are still out there in the marketplace, proving out their value propositions, they all have interesting ones that are solving very specific niches in the marketplace. And what we’re able to do is then expose that to our customers and get a sense of what’s going to get traction, what isn’t. And so our objective is to have a open network where we’re exposing through APIs, many different types of functionality, some of which will own some of which we’re partnering with others on. And these investments allow us an avenue to do that.
Operator: One final question comes from the line of Cris Kennedy with William Blair.
Cris Kennedy: Just a quick one on pricing. It’s been mentioned a few times this morning. But can you talk about kind of what the impact was last year and some of the levers that you have going into 2024?
Melissa Smith: The place we’re talking about pricing just really specific is in our Mobility segment. It’s the place that we continue to experiment within that customer segment or different ways of packaging and pricing to those customers. And also, you’ve seen the benefit of renegotiation of merchant rates. And so as we’ve gone into contract renewals with our merchants, we’ve been able to, on average, negotiate up on rates. And as Jagtar said, we’ve also got the benefit of interest rate escalators that were in there as well. And so when we talk about pricing, it’s this idea that we think that we’ll continue to get benefit on the merchant rates. We also will continue to experiment with different ways of pricing into our existing customer base, and we’ll get a lift to that across the year.
Jagtar Narula: And I would add. So I’m hesitant to give out a specific dollar amount related to pricing impact. But what I would say from a dollars perspective, we expect a similar impact in ’24 that we saw in ’23 from pricing. And a lot of which is — almost all of which is already baked in because we’ve completed those negotiations and price changes.
Operator: I would now like to turn the call over to Steve Elder for closing remarks.
Steve Elder: Yes. I just want to say thank you to everyone for hanging with us a few extra minutes this morning, and look forward to speaking with you again next quarter.
Operator: This concludes today’s call. You may now disconnect.
