 from San Jose, California in the heart of Silicon Valley. It's theCUBE, covering QuickBooks Connect 2016, sponsored by Intuit QuickBooks. Now, here are your hosts, Jeff Frick and John Walls. And welcome back to San Jose here as theCUBE continues our coverage of QuickBooks Connect 2016, the San Jose Convention Center. We'll be here today and tomorrow when they're looking forward to having you along for the ride with me is Jeff Frick. Jeff, good to see you as always, sir. Absolutely, great show. We're now joined by Steve Yusko, who is with PayPal. He's the VP and GM of the North American Distribution. Steve, thanks for joining us. Good to see you today. Great to be here. Hey, things are good at PayPal, right? I mean, Ernie's report was good. You've got some new products to talk about here in terms of your relationship with Intuit. So, no wonder you're smiling these days, huh? Well, actually, I'm just smiling because you guys are here. We're happy to be here. We know better than that. No, it was, you know, we announced earnings last week. It was great. Company's growing. We did $26 billion in mobile payments last quarter. We're on track to do over $100 billion in mobile payments over the next 12 months, which is just astronomical. We've added customers at an amazing clip, 192 million active customers globally. So, you know, it's just an exciting time, obviously, in payments. It's an exciting time in technology, but at PayPal, what we're seeing is everywhere we do business, the investments that we've made in the product, in the experience have really started to pay off because our customers love it. Well, it's no surprise you guys are here, right? I mean, this is your roots, right? Absolutely. All about small business. Announcement about the, I guess, continuation of your relationship or really the polishing of it because you're already doing some things in terms of what you were enabling on the QuickBooks platform, but this crystallizes that. Talk about that a little bit. Yeah, you know, I like to think of our two companies into it and PayPal is sharing a lot of the same roots. We're companies that have built technology platforms that help small businesses start, grow, and manage their businesses. And for years, many Intuit customers have been PayPal customers. But when they accept PayPal payments, they had to do it through a plug-in or they had to manually reconcile things. We hear it all the time. But we're announcing today that we will be integrating PayPal into QuickBooks Online so that for the e-invoice product, you're going to be able to have your PayPal transactions seamlessly integrated. Reconciles in real-time, customers will be able to pay with balance, with PayPal, or with credit card, and it's all there. So your accountants, at the end of the year, it comes from one place and it just takes a great experience and it makes it even better. This is something you've rolled out in Australia, right? That's right, right, that's right. I mean, what did you see there that beige you think? Yeah, this is a home run. This is going to work on a much broader scale. You know this, one of the things that is really important to small businesses is getting paid, right? 64% of small businesses, you'd think the number's higher than that, but 64% of small businesses have invoices outstanding for more than 60 days. And if you've got larger customers, it can be even longer than 90 days. That could kill you, right? That could kill them. Absolutely, it starves your cash flow, right? And in Australia, we rolled this out. We saw that the average time that it took to have an invoice paid went from 21 days down to just over seven days for the folks paying with PayPal. Now that's a dramatic change. I mean, any way you look at it. I mean, I had to look at the number twice, to be perfectly honest with you, but for a small business, man, that's the difference between success and failure, right? And when you think about it on the other side of it, from the account's perspective, time. Time is of the essence. And when you simplify that integration so that all your information is in one place, it makes their job easier as well. And so this is an example where it's really a win, win, win. It's a win for the business. It's a win for the business's customers. And it's a win for all the partners that surround that ecosystem that help those businesses thrive. Steve, you talked about mobile and the growth of mobile payments. And we talk about mobile all the time and we're on our machines all the time, but I don't know if the people really get it. I wonder if you could share some insight as to seeing how the growth of mobile is really taken over not only in the United States, but probably even more internationally. Yeah, you know, the numbers are just mind-boggling when you look at the change over the years. I remember a couple years ago when mobile transaction volume was 1% of what we saw. Now it's 30 plus percent and growing every single quarter. Like I said earlier, we did $26 billion in mobile transaction volume in the last quarter on track to do over 100 billion in the next 12 months. Those are astonishing numbers. And it hides a lot of the amazing changes that are happening in the way that people run their lives and conduct business. And the truth is, is that people are interacting with that device all the time. All the time. There's studies that show that the average person has their mobile device within 18 inches of their body 24 hours a day. My wife makes me take it out of the room so it doesn't buzz in the middle of the night. But practically speaking, what that means is if you don't have a great mobile experience, then you don't have a great customer experience. And that's just the reality. And we're very proud of the investments that we've made at PayPal in that mobile experience. And so when you're able to check out, you hit that PayPal button, people know, they can expect that what's coming is a seamless checkout experience that has far fewer keystrokes that with the use of OneTouch, we already know who you are. We already know your information. And it gets you straight through, away from paying and lets you finish buying so that you can get on with your life. So translate that now to QuickBooks and what you're doing for small businesses. What are you seeing in terms of trends and small business and needing to be much more present in the mobile space? And then how did you adapt that to the new offering? And where do you think it's going to go? Because if we're seeing a 4x growth. In terms of your business, what does that mean for small business over the next three, four, five years? You know, look, the world's getting more complicated. But customers' expectations are that things are going to be more simple. And for small businesses, they don't have time to be thinking about how do I change this technology integration or structure my website to look like that. They want to focus on their products or their services and their customers. And creating that great experience. And so what we're doing is we're extracting that complexity by building great technology that's just there. And so when you send out an e-invoice now, it's going to have that PayPal button. And so your customers are going to have that option. And they're going to be able, as we invest in the product every single day, every single month, quarter of a year, all those updates are going to be there. Seamlessly integrated, always ready so that you're going to be able to benefit as a small business from the millions of dollars that we spend in creating those seamless checkout experiences for your customers. It's really interesting how the cloud and SaaS applications on the cloud have really enabled people like you, people like Intuit, to deliver massive horsepower, scalability, security, thousands of engineering hours behind the scenes, building those products that I, as SMB's mom and pop shop, can now bring to bear on helping me get my business going, improving my customer satisfaction, improving my payments. Very different model than the old days where you load it up on the desktop and really it enables this ecosystem, as we see around us, to contribute all across the board where there's specialties, special opportunities, niche opportunities to complete that whole infrastructure. There's no doubt and what we believe is that we want to create flexibility and optionality for our customers, whether those are sellers, merchants, whether those are consumers, and it's just got to be there for you. It's got to be ready and that was, that's the beautiful thing about this one touch experience that we talked about earlier, is that we decided that this was something that was very important to customers that they could check out seamlessly. We know because you're using your device, we know that it's you, so we could sort of preload that and be ready for you when you're ready to check out and we just deployed it at scale, so it's there. And just that power now becomes the power for sellers all over the world who are offering PayPal to the 192 million customers out there who are looking for it. Yeah, we heard from Brad Smith earlier today on the keynote stage, talking about one of the keys to growth being the ecosystem, right, the global ecosystem and looking for new partnerships, looking for new relationships. So how do you see that in terms of PayPal, in terms of global reach, in terms of QuickBooks, putting all those things together and creating this, I guess, more massive community or better relationships in order for people to start and grow and, I guess, sustain their businesses? Yeah, I mean, Brad had it right. I mean, look, the strength is in partnerships. We have a long history of our relationship with Intuit. You may have seen recently some of the announcement that PayPal has made about partnerships with Visa and MasterCard and, you know, look, we know that these are great companies that have great customers and great customer experiences and it benefits all of us to work together to deliver that value to the ecosystem so that everybody benefits. You know, Intuit's been doing a great job of that for years and we're very excited to be here today to announce this new extension of our partnership with them. So Steve, I wanted to shift gears a little bit. We're almost out of time, but you're USMC, Marine Corps. You're raw. You're raw. And now you've got a built a successful career in tech. So, four guys in the service and gals that are coming out want to get into technology. I wonder if you can share a little bit about your experience, how did that transition work? And then specifically, what kind of things should they look for, services, groups, meetups, et cetera, to help them make that transition because they can't get enough people in technology. We need more great people. What would you say? That's a great question. By the way, I'll tell you, the great irony is that when my hair would grow, I had to cut it. And now that I'm allowed to grow it, it won't grow. What happened? Not just the way things work. No, you know, at PayPal, one of the pillars of our culture that we believe very strongly in is in diversity and inclusion. And so we've launched an initiative to create a veterans organization. We call it SERV. And, you know, I'd like to think of it as on one end of the spectrum, you go to work, you do your job and you go home, but on the other, you go to work and you have meaningful human connections with the people around you that they'll look out for you. They think about your career and developing you and creating opportunities for you. And that comes from connections that you have to name and understand and really nurture. This is one of them. We have several of them at PayPal. And I'm particularly interested in veterans community because you're right. Technology is an industry that, it's a young industry, but it's built around a specific set of proficiencies. And a lot of times people have difficulty translating what you do in the military into what folks do in the technology industry. But if you just look a couple levels beyond that surface layer, you find that there's tremendous consistency there and overlap. And we've had a great success at PayPal, creating an environment that nurtures and accepts veterans and we're very excited about the opportunities to continue doing that. Let's see if we want to commend you for that. And thank you for your service. But thank you for serving those as well who have followed in your footsteps. So congratulations on that front. Thank you. And good week for you. Thanks for joining us here at QuickBooks. We appreciate the time. Thanks, Jens. You bet Steve Fusco from PayPal. Back with more here from San Jose. And just a moment. I'm watching theCUBE.