John Morris: Yes, Joe, let me add just a little color there, obviously, that continues our investments in technology go with our embedded payment solutions inside of our software partners, and our ability to do via networks, own networks that move funds. So on the modality as we drive our product features throughout our solutions, we’ve added many of those this year, to very complementary to what we’re looking at, we think we’re set up well, and we’ve made some of those investments, our ability to drive that those processing features. And then — and we would expect to, as Tim indicated, we expect to scale some of that back, as it’s not — those projects begin in the end.
Joseph Vafi : Sure, fair enough. Thanks for that those comments, guys. And then, if we look at this, some of the stuff like instant funding and your other value services growing really fast. Trying to get a feel for kind of how penetrated in the market, you might be with some of these services. I mean, clearly, it’s a small base, but just kind of wondering how you’re thinking about the KMs [ph] in some of these fast growth areas. Thanks a lot.
Tim Murphy: The value added services are certainly a nice grower for us, there’s couple of different revenue streams there, we called out, instant funding and communication solutions. Instant funding today, the primary use cases in personal loans, it’s funding loans directly on to the consumers debit card, which we actually think leads to higher debit acceptance, because oftentimes, when you fund loan onto a debit card, it becomes a default repayment mechanism for automatic recurring payments. So that’s a benefit just to existing client growth in terms of additional debit acceptance. So, we’re probably only utilizing that the instant funding product with maybe a few 100 lenders, and we have several 1000 personal lenders, so the penetration is fairly low.
The primary use case we’ve seen so far for communication solutions is in mortgage servicing, there’s a lot of lot of communication, and notifications required around when your payment is due, how your payment can be made, and the various options for making the payments, and that we oftentimes will charge for that. And we’re also trying to make more of those communications, digital and entire digital payment to the communication itself. So, that’s a nicely growing business for us. And that drives some of the growth in mortgage servicing. Those are two areas, we see where there’s just not a lot of penetration today, but a big opportunity to continue to grow those services.
John Morris: Let me add as well. The real flywheel effect on the business payment side is, we’re seeing tremendous amount of opportunities there, specifically on the payable side, and for every payable with someone else’s receivable, our ability to really turn that crank is there. And our ability to just continue to accelerate that. Let me add as well, embedded payments into very large enterprise software platforms, such as our example we’ve been giving us is Blackbaud. There’s several of those opportunities out there. And really help in the monetization of payments, to and from which exist in every platform. It’s a significant opportunity with many years of growth, as well, as we mentioned a few things as well, like our mortgage initiative is really not in our ‘24 concepts, but we think it’s a multi-year contributed organic growth as well.
Joseph Vafi : Great, thanks for that extra color, John. Nice quarter again, John and Tim.
Operator: Our next question comes from the line of James Faucette with Morgan Stanley. Please proceed with your question.
James Faucette: Thank you very much. Just a quick question. Obviously you answer the question around acquisitions and valuations and you guys haven’t done anything in a couple of years you’ve been disciplined, but maybe that’s starting to open up a little bit. How should we think about what kind of appetite you would have like what are you looking for either from a capability or size perspective? And then, you know, in reference to your CapEx questions, I think your comments about like maybe why that was elevated now coming down makes sense. But if and as you were there to do some incremental acquisitions should we expect CapEx to come back up? Or is that really hard to say, ahead of time?
Tim Murphy: Yes, in terms of M&A priorities, I mean, we look at deals across both consumer payments and business payments, we have a number of attributes we look for, it usually centers around integrated payments, because integrated payments to us lead to better retention statistics, typically higher margins. And that’s why we focus on those types of businesses, and those exists across consumer payments and business payments. We’d like to scale business payments, we’d like that to be a bigger part of the overall mix. We see — in the business payments segment, specifically, we see targets in both AR and AP, I would say there’s probably more targets than AP. And we would be not only scaling, B2B, but we potentially would be buying other capabilities, like cross border payments, really not in cross border payments today, we could be more in the SMB market through acquisition, right now we’re focused on medium to enterprise, there’s some opportunities to potentially participate in the SMB space, or just expand the number of verticals, we’re in AP, there’s some of our targets are in different end markets.
And they have their own supplier networks and those end markets. So we’d be getting access to new vertical niches, new software integrations and an enhanced supplier network. Because we’d like to grow supplier networks that would be one of the attributes we’d look for on the AP side. So you know, those are, that’s how we think about M&A. It’s across the board. But we do want to grow the B2B business and scale it. And, we’ve done a lot of work to bring these platforms together. And I think we have the right platform and infrastructure in place to absorb additional acquisitions without significantly elevated CapEx to integrate them. I mean, there may be some work required, initially. But I think we’ve kind of demonstrated our ability to bring these platforms together, particularly over the last few years when we haven’t been doing M&A and been focused more on organic.
I think — and I think segmenting the business also sets up to absorb acquisitions more effectively and efficiently going forward, which should limit the need for incremental CapEx.
