 Hi, everybody. You want to go here or should we go here? Please. Here we go, let's go here, let's go here. How's everyone doing? Thanks for coming, you guys. Yeah, thanks for having us. So we have an amazing, can you hear me OK over there? Yeah, OK, good. You guys have a very distinctive place in European history at the moment, your biggest M&A deal of the year, which is PayPal buying Isettle. But it's a very funny one because you guys filed for an IPO. And then nine days later, boom. So can you take us into back to what happened there? Why did you, what happened, Jacob? That's a good question. Like you said, we had been planning for that IPO for almost a year. And then you guys ruined it. No, but honestly, so we have been planning for that. But eventually, roughly, we've been talking to PayPal over the years. And we've obviously had sort of business discussions. But come closer to the IPO, we started to have more sort of in-depth discussions and meeting with Bill and also the CEO, Dan Schulman. We realized that the visions are so very much aligned and combining forces from the Isettle perspective would kind of give us a fast track to reach our vision. So it kind of all made sense. I guess it helped that the IPO would have valid you guys at about a billion. PayPal doubled it for 2.2. There's a whole art form to IPO crashing. But as Jacob said, we're extremely excited about it. Having joined PayPal as an entrepreneur myself with Braintree and Venmo, number one, just as Jacob was sharing alignment on what we want to do for small businesses around the world. We serve 20 million plus businesses today. But when you think about sort of in-store mobile payments, bringing more of those small businesses around the world into the digital economy, we think there's a huge opportunity around that. And Jacob and the Isettle team have done a fantastic job with that. 12 markets, you look at some of the other players in the space, have not really been able to go as far internationally as what Jacob and the team have done. And so we felt like that really fits with our ambitions at PayPal that we think these are capabilities that businesses around the world should have access to. So I think a lot of great alignment around that. And then as an entrepreneur, we've really built up a team of entrepreneurs at PayPal over the last five years. And so having Jacob, his co-founder, Magnus and the team come in, we think really adds to a great entrepreneurial family that we have inside of PayPal now. So what's weird to me is I've been told also you guys had been talking for a long time before this happened. But what was it? Did his filing for the IPO wake you up? Or why did you wait for them to do the IPO before making an offer? Or were you already talking to them? It's something we've been thinking about for a long time. I think the... So we didn't do it because the IPO was happening. But I think it's one of those... I made a joke about IPO crashing, like wedding crashing. It's sort of like that moment at the wedding where it's speak now or forever, hold your peace. Like I think it's not that you couldn't have done it post-IPO. But the conversation we had is that, well, hey, we think this makes a lot of sense. If there's going to be a time, it's much better to do it pre-IPO versus post-IPO because the complexity goes up. And so certainly that we thought about that complication. But we felt like these... What Jacob and the team have been building, we felt like was something that we wanted as part of the family for a while. But certainly that notion of like, do you do it pre-IPO or post-IPO? Certainly less complicated to do it pre-IPO than on the other side. Now I know that Isettle, part of it was that you guys didn't have much of an overlap. So there's a very complimentary thing. And Isettle has done quite well as a startup and obviously PayPal is PayPal. But that's kind of slightly bitten you guys now because the competition authorities are investigating the deal. Is that right? Are you going to be... Can you give us a little update on where that's going? Sure. I mean, the CMA and the UK, so there's one market. The deal is closed. So the deal is closed. But the CMA and the UK, we're working productively with them to make sure that there's comfort, that what we're doing is adding a choice for businesses, helpful to competition in the market. And we're very confident that's the case. I mean, if you look at the payments market broadly, as much as PayPal has grown, we're still a very small piece of the overall payments market. And what we're doing with Isettle, we think it's bringing a lot of great choice into the market and bringing a lot of great competition into the market. It's one of the things that we loved about what Jacob and the team are doing is that there's a lot of, I would say, entrenched players in the payment space. When you go to markets around the world, there's been a lack of choice. And I think what we're doing together brings more choice to that. I don't know, Jacob, if you comment on that. It's kind of interesting to see where we are now, especially given where we started eight years ago, going into the market to really give the opportunity to small businesses to get access to the tools that we offer. I mean, at that time, the UK was really an oligopoly dominated by the banks and we offered our services. So it's interesting to see, but we'll get there. Yeah, I mean, just anecdotally, I can tell you that there's been a real shift. There was a long time where you couldn't pay with cards in quite a lot of places. You had to use cash, which is fine, but can be quite inconvenient. There's just a huge swathe of merchants who just weren't taking cards, who are now from Isettle, but others too. PayPal has a pretty extensive business there, too, as you know. So now, both of you have really interesting backgrounds as entrepreneurs, of course. Now you're part of a big behemoth, a giant in payments, a friendly giant in payments. Now, what do you think about the kind of opportunities for smaller startups? Like, where are the opportunities and payments now, do you think? Or do you think that we are in a stage of consolidation where you have to be bigger? You can take that first, Jacob. I think looking at Europe, obviously, sort of the European and US and Asian landscapes are very different. But I'd say if you look at Europe with what's happening with PSD2 and bank-to-bank payments and things, we see a lot of innovation in that area. And looking at Asia, I mean, the entire sort of ecosystem is so much more, I would say, advanced compared to in the Western world. So we see new companies emerging everywhere. I'm not really sure what it's like in the US, but I think it's going to stay the same. From my perspective, I think it's a very long way from being at a place where you have to be big to succeed, in fact, quite the opposite. I've done five startups going all the way back to the late 90s before FinTech was a term, when I used to have to explain to people that you could actually do technology in the world of finance. Now there is no Fin without FinTech. That's right, yeah. And now the amount of innovation happening in the world of FinTech is 100x, what I think it was a decade ago. And so I think it's quite the opposite. There's actually way more innovation happening. And certainly we feel like we're contributing a lot to that, but we're also partnering a bunch on that. We want to be an enabler of others who are innovating as well as one of the major shifts in what we've done at PayPal over the last five years has really opened up the platform at PayPal to say, we want to be a great enabler of others that are innovating in the space. And the people that want to go build and create can use our capabilities on our platform to do more of that. So we see a huge opportunity in that. And the great thing about it, as Jacob was mentioning, it's a global phenomenon. I think that's the other major shift over the last 10 years or so is that you don't have to be close to capital to go innovate now. The cost of entrances come down tremendously with cloud-based computing and great distribution platforms like social and mobile. And so there's innovation happening all over the world. This is a great example of that, what an amazing place with so many great tech companies. And so I think that's a really interesting phenomenon as well, just how global the phenomenon has become. I think what's also exciting is that now innovation in payments is one thing. But it's really what we're looking at doing together. It's building on top of payments and building all the sort of complementing services in our case for small businesses and see how that can really transform the situation for small businesses around the world and then eventually also for states and people. So I think that's really what excites me. Payments is still sort of core infrastructure and that will be changing and will always be part of what we do. But it's everything that we've built on top that kind of excites. I feel like it's one thing I've seen a lot of when I think about like new companies in fintech. It's been a lot of apps to do sort of, for example, mobile banking for people, but it's a lot of me too stuff. Do you think we may be in a period where the most innovation is happening behind the scenes or do you think there's still something left to do for the actual recipient, whether it's a business or a consumer? I mean, you guys completely change the landscape with peer-to-peer payments. I mean, massive thing that you did with Venmo, which I think is, everyone has copied that now. I settle obviously with the dongle and changing it. But is there something, do you think there is still uncharted territory at that end of the market or do you think it's more about, as you said, creating a platform to enable more transactions and things? Well, I think, let's start with Mobile Point of Sale that Aizel's pursuing. As you mentioned, in markets that Aizel has entered, many of those markets, like small businesses, were taking cash only, right? And I think if you look around the world, there are many, many markets that still look that way. And I think that's one of the things that we're most excited about with Jacob and the team joining, is that they have really found a way to localize and expand into new markets really quickly, 12 markets so far, many more to go. We hope that we'll do together. But I think the other thing is, well, yes, anytime you see something succeed, you'll see a lot of players wanna go emulate that. At the same time, we talk about, for example, like underserved consumers. And like in the US market, there's 30 million plus people who don't even have basic financial services in the US market. But then when you look around the world, there are billions of people that don't even have access to basic financial services like a checking account or a debit or credit card. And as you look at the rise of the digital economy, if you don't have basic financial services like a debit or credit card, well, how do you participate? You can't take that Uber ride that maybe costs you less money or you can't engage in sort of whatever interesting new services are being built. You can't engage in that. And so I think there's a massive opportunity to go get billions of people into the digital economy that currently are locked out because they don't even have access to basic financial services. Yeah, I mean, in Africa, they're doing really interesting things with M-Pesa, for example, where you're using your mobile phone, which essentially becomes like your bank account. You top up on your phone account as essentially a place to keep credit. Do you think that you guys would, is PayPal's idea to integrate with more of those localized services, or would you ever try to build something of that yourselves or buy one of those? I mean, we all of the above. So like M-Pesa specifically, for example, we have a partnership with them. You're partnered with them now. Yeah, that's right. Do you think you might ever try to buy them? I can't comment on something that hasn't happened, but we certainly don't need to buy to go partner well. I mean, that's one of the things I think is also quite different about the PayPal of today versus the PayPal of a decade ago, is that in opening up our platform and saying we're a platform-based company, we want to partner with others. And so it's not just companies like M-Pesa that we've worked with. We're working with local players and markets all over the world. Sometimes those local players are tech companies, like what we're doing with Oli in China, or working with banks and card networks and more traditional players. And so what we're really trying to do is make our platform an entry point for others to participate in the digital economy, whether you're a traditional player like a bank or a card network, or if you're a startup trying to build the next thing, or if you're a local player that's figured out something about the sort of FinTech ecosystem in your country, all of those are places where we want to go be an enabler of those different services. And I mean from our perspective, there's such a rapid development of new payment methods and it's such a diverse landscape. And the most important thing for us is to make sure that our merchants can capture whatever type of payment there is. And so from our perspective, go integrate is probably our core objective as it has been over the last eight years. How has that been going? I know that still the bread and butter of Isettle is still the card payments at point of sale in a physical place. I know you guys launched something for online payments about a year ago maybe. How and you do all their financial services like PayPal does as well, whether it's financing and other things. How much of that has worked out for you guys so far? Or are you still majority point of sale? From a revenue perspective, Isettle is still the majority of revenues comes from payments. But I mean we've been on a journey for a long time even though we're perceived as a payments company. I mean what we really offer is a commerce platform for small businesses to be able to grow their business to the next point where they can employ that second person or expand. So I think even those sort of revenues to not correlate, we see really strong pickup of the different services that we offer. In a more complex landscape for small merchants where they keep competing with the giants, they need to be able to run their business offline and online and then who has inventory if you're only one person that creates complexities and those are the things that we're trying to solve. Let's say that we're... I'm gonna switch the gears a little because I feel like the biggest thing I've heard about people talk about Infintech actually in the last couple of years has been cryptocurrency and the blockchain. I'm so sorry to mention them. I'm a skeptic myself, but I try to keep an open mind. What do you guys, first of all, what's PayPal doing on this front? What do you guys... We certainly stay close to it and we've experimented with the technology a good bit. As an engineer, I can appreciate the computer science breakthrough that blockchain represents. Not smoke and mirrors. It is smoke and mirrors, just a little bit different. Yeah. I think the thing that has yet to happen, the real breakthrough of blockchain is this notion of distributed trust and while that's a major breakthrough, there just aren't a lot of analogs to that for people to look at and say, well, how would you operate something in a sort of fully decentralized trust model? I think a lot of the early cycles with blockchain have been people trying to go replace well-functioning central brokerages of trust with a distributed system. I think the bigger breakthroughs are going to happen when people start to apply that technology to problems that could only be solved through distributed trust. I think the reason that's been a little slow going is, as I said, people don't have great analogs for that. There's not a great framework for like, oh, I see 100 different problems that are well solved by decentralized trust because it was a previously unsolved problem. Like, that was the brain teaser in school like it wasn't solved before. I mean, isn't PayPal almost like the counterpoint to it? It's like, why do we need that? We have PayPal. Yeah. Well, I... Isn't that what you would say? Because I mean, you guys have already built rails that you would consider secure. It's not like people are constantly defrauding each other on your network, are they? Well, I mean... Or are they? Certainly a big part of our value... Well, a big part of our value prop is that we broke our trust. We provide buyer protection. We provide seller protection. So certainly we do a lot to fight fraud, but we also guarantee both sides of the transaction through buyer protection and seller protection. That is certainly a lot of what we do. At the same time, a lot of people ask us like, well, does that mean that it's a threat to you? And I look at it and say anything that helps to bring more innovation is something we want to get behind and that we want to encourage. And like I said, I just think that it's gonna take more experimentation for people to find the right problems to apply that technology to. I think that technology being applied to some problems that maybe it's not as well-suited for, but as you find problems that could only be solved through decentralized trust, then I think you'll see some much more interesting use cases on it. Okay, now, sorry Jacob, I'm gonna ask you a question, but are you guys trying to find those problems yourselves? Where are you sitting in the blockchain stuff? Yeah, I mean, we certainly look at some of those. And I think there are interesting examples of, in any place where there's not a well-functioning central brokerage, I think are interesting places to go apply the technology. So cross-border currency swaps are a good example. If we're gonna go swap dollars to euros, you can do that in milliseconds at a super low cost, right? But say you want to go swap Kenyan currency to Nigerian currency, that's gonna take many, many days and you're gonna pay a very high fee to go do that because you don't have great functioning central brokerages there. So there's some companies out there that are doing exactly that kind of thing to say, oh, well what if you use cryptocurrency to go make those currency swaps instead of going through a central brokerage and they're taking seven or eight minutes on the blockchain to settle is way better than the three days it might have taken otherwise. But I think that's a good example of where you need the right use case, Kenyan currency to Nigerian currency, great use case, dollars to euros, maybe not as much because you can settle much faster than what the blockchain could do. Okay, so you guys, if PayPal were to move into something in a blockchain-based solution, it may be in an area like that, either getting behind one of these companies or launching a service like that first rather than just, I don't know, something else that's more within the US or something, buying products on the blockchain or something. Yeah, as a basic transaction processing system, it's a public ledger, Bitcoin, for example, is a public ledger, taking seven or eight minutes to go settle in the world of transaction processing where things happen in milliseconds, it's not a replacement for that kind of transaction processing. But like in that currency swap example, I do think there's other things that it can work well for, and we're definitely staying close to those. Okay, Jacob, did you want to add something to that? And then I have another question for you on this to follow up on. No, I mean, from our perspective, I mean, we just try to deliver to our merchants what they're looking for and sort of the most frequently used payment methods and the sort of Bitcoin up until now has not been one of them. Right, so that was the second part of it all, of course, is that you've got the blockchain, which can be, is it kind of distributed architecture, but then you've got the cryptocurrencies, this is on top of it. How much have you had merchants on the iSettle platform start asking if they can take payments in Bitcoin or Ethereum or whatever? Well, I mean, we were looking into sort of adding the other payment method. Settlecoin. Exactly, adding the other payment method a couple of years ago, then the fluctuation obviously of the cryptocurrencies and sort of there is really no demand from sort of offline merchants. At least they're selling for coffee to get paid with Bitcoin, so from that perspective, we haven't done much, but as you said, Bill, where it becomes interesting maybe for us is more so from a backend perspective, if we can to replace some internal systems with some blockchain, that could make sense, but that's as far as we've pushed it internally. What about you guys? I mean, are we going to see a Venmo coin coming out soon or anything? No, no, we're not. That's so silly. Yeah, sorry. You're a big fan obviously. Yeah, I mean, as Jacob was saying, we follow user demand and we were accepting Bitcoin for a while and as Jacob said. You were doing what for a while? We were accepting Bitcoin for a while. You were accepting, yeah. With Braintree and I think the consumer demand is not there for that, as Jacob was mentioning, we see a lot of consumer demand for alternative payment methods. And so for example, like we recently launched Smart Payment Buttons, which is democratizing access in the world of e-commerce for small businesses all the way to large businesses to get to whatever form of payment somebody wants to pay with. And so if that does become something, that you start to see the consumer demand, we've created a scalable infrastructure where a merchant can easily say, oh, we'll flip that on for me and the merchant's not doing a new integration to go add a locally relevant payment method to go into a new market or as consumers change their preferences to go add whatever consumers are preparing to pay with. Nicely converted the question there, Bill. But just to bring it back to the cryptocurrency, I think that's really important, by the way, what you've just described. It's so fragmented. I mean, once you start looking at payments globally, it's really surprising because I think people just, you need to think that cards, if you live in the West somewhere, you assume card payments, whether it's debit or credit, is all that's needed, but it's really not even scratching. That's exactly what we realized over the last couple of years from our perspective, that when we started, I think the payment landscape was actually a lot easier for merchants to be dealing with. It was basically MasterCard Visa and American Express from a card payment perspective and then PayPal. But now the multitude of payment options in the Nordics with Swish, Vips, Mobile Pay, these bank-to-bank transfer schemes, that's really escalating really fast. The demand for those types of payment solutions to be accepted at point of sales is much, much higher compared to crypto. Yeah, so no driver yet to try to create your own cryptocurrency or start taking some of the more popular ones. Not from us though. From merchants or buyer, consumers or anything like that? No, I mean, just the... Do you think it's... Let me put it differently because I've already asked you this question, but do you think it's a healthy market right now? Well, you certainly see that some of us out there is speculation on the currency. So you gotta... I'm certainly not the only one to say this, lots of folks have talked about this, sort of separating out the technology from the currency. I think the technology, there's a lot of interesting things that will happen. As I was saying before, you just need to apply the technology to the problems that are best suited for it. I think on the currency side, there's certainly been a lot of people that are engaging in currency speculation there, which I don't know that that's a healthy thing, which is why we've chosen not to really participate in that aspect of it. But that doesn't mean that we're not paying very close attention to the technology and what could be there. And even the things I was mentioning, part of what you do as an innovator is be prepared to adapt as things evolve. And so, like I mentioned on Smart Payment Buttons, like there's a bunch of things like that that we're doing to say, well, hey, we know we can't perfectly predict. We wanna be flexible, such that we're prepared for the fact that you can't perfectly predict how markets evolve, but that we can be flexible and adaptive as markets evolve. Which is a great thing to say, because that segues into my next question. I wanted to ask you guys what you thought about Amazon's cashierless stores. Do you think that that's something that could actually become ubiquitous or do you think it's a marketing stunt by Amazon? And if it's ubiquitous, how will you adapt to that one? Well, I think it's an interesting experiment. I think it will, eventually we'll see whether it's something that actually works. But my personal view is that we'll see some sort of hybrid of the sort of completely sort of digitized offline retail store and someone with action people selling things in it. But the transformation of retail right now is crazy and a lot of retailers are really feeling the stress of Amazon and the likes. I think that's right. I think in the world of retail, you see it every day with stores closing, going bankrupt, there's gonna be more change in the world of retail in the next five years than there's been in the last 50. And I think the question really is, as those retailers work to adapt, how do you go give them access to the kinds of tools that previously had been reserved, only for the largest few? And I think that's a really important thing that we endeavor to go do, that we wanna go give access to the many to engage in those kind of capabilities. But I think that's gonna be a very important theme across the industry for the next 10 years is how do you make it so that many players get to participate in that versus only a privileged few having access to those kinds of abilities? That's always the theme, isn't it? And to summarize, that's sort of the whole logic behind the two of us sitting here together. Exactly right. But does that mean that you guys are working on cashless now? Well, we certainly care a lot about innovation in the store. We see that blurring together. We see that a lot of what we're doing with mobile payments, this past Black Friday, for the first time, we had over a billion dollars in mobile payment volume in a single day. Then cross that again on Cyber Monday. But that's a great example of how you see the digital world and the physical world really starting to come together. The Black Friday that used to be a completely physical world event now is as much about digital as it is about in store. But those are merging together. So that's a big focus for us. And that is, as Jacob was saying, a primary driver of us working together is to say we want to combine those digital capabilities with great in-store capabilities like what Jacob and his team have been working on. Okay, we're out of time. Thank you so much, you guys. Thank you. Thanks, everybody. Thank you.