Adyen N.V. (ADYEN.AS) Earnings Call Transcript & Summary

All right. Welcome, everybody, and good to see you here in Amsterdam. It is 2 years ago that we did our last Capital Markets Day, and I think it's safe to say that the world changed quite a bit. AI, I think it changed how business operate, how people operate and, unfortunately, for us, how [Audio Gap] regulations. We are a highly regulated company and regulations change all over the world, and we are being expected to react on that with resilience. And then global commerce keeps going, but consumers and merchants expect instant innovation from us. That sounds like an environment to work in, but I think it underlines exactly how we have been building up Adyen because what we have done is we always work on a foundation on which you can build further. So if you have the foundations right, then I think you're in a good place to deal in this environment. So I think it feels like an advantage. And that advantage that we have exploited now over the years, that is what I think brings Adyen now well positioned to be one of the largest fintechs in the world. And with that, I want to hand it to Ingo.

Yes. So today, we're going to talk about durable foundations [Audio Gap] when we started the company. And it's the single tech stack that is very important to the success of our company. Because with that single tech stack, we can route all transactions through the same intelligence, but also if new trends arise, we can adopt them quickly and globally. Then in 2017, we added that new foundational layer, which was the global banking infrastructure. And with global banking infrastructure, we have -- of course, that comes with responsibilities at the one hand, but also with opportunities. It's one of the reasons why we can build capital without any involvement of third parties. And today, we're adding that third layer, that is the third foundational layer to our company, and that's dynamical identification. And the reason why it's so important is because the industry is at a breaking point. What Pieter said around what is happening with AI, we need to have an answer to this. AI is increasing or results in increased fraud level [Audio Gap] decade of growth, and that growth will come from higher conversion for our customers, lower fraud rates, so better defense against AI-driven fraud, faster onboarding and, ultimately, and I think that's where it's all about today, build that new level of trust in global [Audio Gap] of course, we're going to start with that first foundational layer. And I'm very happy to welcome Tom on stage, who's going to talk about our single tech stack. Thank you.

Thanks, Ingo. Thanks, Pieter. It's great to be here today talking to you all. You've heard about [Audio Gap] I'm here today to talk about the bottommost layer of the stack, the single platform. So from the start, our guiding principle has been crystal clear. If something is critical to the way that our business operates, we want to own that. We want to own that in-house. We want to build that ourselves. One tech stack, one platform, one [indiscernible]. We truly believe that this is critical to the way that we build our platform. This gives us the control, the flexibility and the speed to operate without relying on third parties because whenever you add third parties to the mix, you distance yourself from the problem and it creates these complexity. It's a typical trade-off, right, between cost and speed -- or between control and speed, I should say. And when we think about how we built our platform, we think about some key principles. I already mentioned that guiding principle. We want to own what differentiates us. So for those end-to-end flows, we want to have full ownership of those and [indiscernible] at the edges. This gives us optionality in terms of the solutions we're able to build for our customers. And we only scale what works, so we use evidence and data to drive that decision making. And these are the three key principles that our platform is built upon, sound like they're like closing us off, but they're not. They're about keeping us open. They're about making sure we're able to make those deliberate choices to drive the right outcomes for our customers. And this gives [indiscernible] we can have it all. But this foundation doesn't matter if it's not there to help our customers. We exist to help our customers grow to help their businesses grow. And so let's think about what this looks like in practice. So I talked about these principles, but how does it come across in our day-to-day work in order to help our customers? You can see this little thing animating on the screen. What it's essentially saying is that we're constantly trying to optimize between fraud conversion and cost. So if you think about a payment that's flowing through the system, a payment goes through multiple steps. So maybe there's a risk check, maybe there's authentication, maybe there's routing, maybe there's tokenization. Each one of these steps historically has been optimized discretely and independently. And that's great up into a point. But what if a downstream decision [indiscernible] or an upstream decision could be better if you had information about a downstream decision? That's what Adyen Uplift brings. And you're going to hear more about that from Carlo later on this afternoon. We're able, with Uplift, to optimize across that entire payment journey. So we're able to optimize across all those different steps, and this means improved auth rates, lower cost and also less fraud. So we're able to balance this trade-off. And as we're building these things in, the system is continually learning. It's learning itself, and we are learning and we are adding more. We're adding new signals, new models, new relationships to make the system overall get better. This is also [indiscernible] do this because we're operating within that single platform. Everything is built in-house on this single tech stack. So everything that we do compounds. Every change we make for one customer impacts all customers. Every change for one geography impacts all geographies. We use several types of AI at Adyen. We use classical models, so decision trees, for example, when we have clear structured data. These types of models are really good for fast decision-making at scale, and they work really well when that data is clear and structured. So when relationships matter, the graph-based models bring out those relationships. They let us see things that the traditional or classical machine learning models don't let us see. And these are really good when you have relationships, right? So between a merchant and a shopper between a shopper and their payment instrument. So when those relationships matter, we use graph-based models. We also use reinforcement of a previous action. So we also make use of reinforcement learning for this dynamic decision making. So think about retries or exemption requests, things like that. And when we're shipping these machine learning models, I touched on this a little bit before. Every improvement must meet the baseline and be better than that baseline before it ships to production. [indiscernible] models, conversion, fraud, latency, cost per transaction. The ability to take these evidence-based decisions and producing what's quantifiably better outcomes for our customers is what makes the AI that we build credible. And when we think about AI, we're staying curious. Almost, not yet. We're staying curious. We're continuing to learn. We're staying open and adaptable because we need to deliver outcomes for our customers at scale. And as you can see, generative AI is no different. [indiscernible] first and safe always. When we think about how do we adopt gen AI and how we're using it today, we use a combination of closed source models and open weight models. We tune those weightings in-house and we train those models on our own infrastructure. Because generative AI is still prone to hallucinations, for any key or critical operational flows, we keep a human in the loop because we need to be able to review those decisions before we're releasing them. We're seeing our merchant support, so our support agents are able to operate more quickly. We're able to route tickets more effectively and we're able to simplify those summaries that lets us act far more quickly and produce quicker outcomes for customers. We're also seeing internal efficiency improvements. So because we're able to search more quickly produce better results and to summarize information, our internal productivity is improving. And we're also able to reduce our operating costs through measurable use of automation. And we're not just using gen AI everywhere. We're not only using it if it improves. So I talked about those baselines and those metrics. When we're thinking about gen AI [indiscernible] we will use the simple model. Again, our customers don't care about whether we're using gen AI or not. They care about outcomes. What tangible outcomes are we delivering for them? We're already seeing improvements from the use of gen AI internally both in terms of internal productivity but also in [indiscernible] but the real strength of the platform when you bring these all together is around adaptability. It's the ability to incorporate new things into the platform, new capabilities without building new tech stacks. The foundation is the key to this. You'll hear this word, foundation, a lot today. The foundation is the key to everything we do. We've built the platform in a modular way. What that means is that we can compose it to [indiscernible] bricks. You can put them together in different ways to meet new demands. So as our customers need change, as the industry changes, we're able to put the platform together in different ways to drive outcomes for our customers. This foundation is what allows us to continue to solve the toughest problems for the world's most [indiscernible] strong that we can build anything. This is how we keep ahead of merchants change and how we continue to grow the platform over time with every transaction that runs through it, with every payout that we do or with every virtual card that we issue. And that same adaptability is what prepares us for the next wave of commerce. So you're probably waiting to hear about agentic commerce today, and we've got a lot to talk about there. But the platform is what prepares the building blocks in place today to be ready. Tokenization, authentication, these are systems that we have in production at scale today. And last month, hopefully you've all seen it, we released I think on the website the talks about our merchant-first approach to agentic commerce, forefront of this next wave of commerce. It talks about four key principles. So the first one, we should always be acting on behalf of a customer. So we need verifiable cryptographic intent. We also want to maintain merchant control of their payments setups, of their tokenization strategies able to recognize shoppers across every channel. So think about things like loyalty programs. How is a shopper that's coming to a merchant able to make use of the loyalty that they've built with that particular merchant. And the last key thing is about ownership. So we believe merchants should own the agentic commerce relationship, the customer relationship and also the data. We believe that merchants should own [indiscernible]. Now taken together, these principles make sure that agentic commerce is an additive channel for our merchants and it's not a dilutive one, and it's also not disintermediating them, which is a common problem and something that we're hearing a lot from our customers. And you might ask, who are we working with? We're working with everyone that you'd expect. Trevor is going to share more about this in a minute, and I won't steal his thunder. But you can assume that we're working with all the key players in the industry. And while agentic commerce is new and there's a lot of excitement. I spent a lot of time in SF, you drive down the 101, you see the billboards. There's a lot of excitement. There's a lot of talk. There's also a lot of concern. So a merchant-first agentic commerce framework make sure that we're able to leverage the strong foundation that we've built to continue to put merchants first. And when we think about our single platform, when we think about that vertical control or that full stack nature of it, it's not just a set of kind of principles in a vacuum. It's actually a compelling engine. So it's one that compounds performance, single code base, single data model, single tech stack, single experimentation loop. It also allows us to bring a lower cost of change that helps our customers. It gives us a lower integration tax. We're not integrating complicated third parties. We're not losing data and handovers across the wire. We're able to continue to keep that cost of change low as we're building new things on top of the platform. And it also sets us up for the future. We're ready. The modular nature of the platform helps us be ready for whatever comes next, whether it's agentic commerce or other forms. We're ready. The platform keeps us there. The platform taken together is -- it turns learning into leverage financially, operationally and strategically. That's it for me. I'm going to hand over to Marriette. Marriette is going to talk to you about how our licenses built on top of the single platform to make that global banking infrastructure. Thank you.

Hello, everyone. Thank you for being here today. We just had Tom explain as the first layer of our foundation, our single platform. And that is the technology base to innovate at scale. But technology in itself is not enough if you want to serve large [indiscernible] in our banking infrastructure. And that is where Adyen took a very different turn than many of its competitors, many other fintechs. And in the next 10 to 15 minutes, I would like to explain you why. We are entering an age of infrastructure. The age where having full control over your infrastructure no longer is a nice to have. It is critical in the [indiscernible] I'll touch about each of these items. But before we do, let's just first pause and see what happens when you don't control the foundation. In a typical fintech, there is complexity and there is a delay. And we all have seen the consequences of that, businesses being locked out of certain verticals because the bank changed its risk appetite, platforms not being able to pay their users because accounts were frozen [Audio Gap] are clear when you rely on third-party risk of third-party banks, you inherit their risk. And when something goes wrong, it's not only the name of the partner bank in the headline. It's everybody else within the party that gets affected as well. It's also their name, their brands and their reputation that is at stake. [indiscernible] secured our first acquiring license in 2012, our first banking license in 2017. And we continue to build steadily ever since. And today, we have [Audio Gap] We control the infrastructure end to end. And by doing that, we not only remove the friction I was referring to earlier. We also add really clear advantages to our customers. And I want to highlight three of them. First advantage is predictability. Most of the fintechs live by the mercy of their partner bank's risk appetite, and when that changes, services oftentimes get disrupted and there's very little that the fintech can do. We are not facing this because we have relationships with our regulators, all in the way that it perfectly aligns with our technology. For us, that means flexibility. We can set our course independently from others. For our customers, that means predictability. They're not faced with a certain change in risk appetite. They're not changed with the misalignment between policies and procedures between different product. We control our own. And it's that predictability that our customers like because predictability builds trust. It means that our customers can plan and scale their business on top of our infrastructure, knowing that the rails will still be there today, tomorrow and 10 years from now. The second advantage I would like to call out is speed and optimization. Because we own the infrastructure, we can allow, we can enable faster money movement and better intelligence. Take the U.S. as an example. Our licenses allow us to maintain a master copy [indiscernible] networks. Because of that, we can control every step of the transaction on our own rails from authorization to acquiring to settlements to global payouts or quickly, efficiently and at the lowest cost. And the results are simple but powerful. It's true instant payout 24 hours a day, 7 days a week. Funds do not get stuck in transit with some partner bank. Money moves when our customers want it to move. Our customers like the speed, the control that we can offer them. They also like the intelligence behind it. Because we have been able to combine our single platform with our banking infrastructure and our global data capabilities, we can capture data, clean structured data right at its source rather than that we need to collect it from all partner banks. And it's because of that, products like our Adyen Uplift. And we have Ingo and Carlo tell you more about it this afternoon. Then finally, the third advantage that I would like to call out is uniform product growth. Our license allows us to move beyond payments and offer our customers, both platform and enterprise customers, financial services and products like issuing, bank accounts, capital. And again, we can offer these services without the involvement of any middleman, any partner bank. We are the actual issuer [indiscernible] and the conditions on which we can offer them. And again, we can do this without middle men, but the advantage is we can also do it on one single platform. That means that our customers and their users can access our suites with one single integration, but also with one onboarding flow, thereby avoiding a duplication of KYC and other compliance checks. The benefits for our customers are clear. They can grow without complexity. They can simply tap into new revenue streams. They can build loyalty, strengthen the relationship they have with their users, all with one single integration. And we have Thom and Catherine, telling you the latest on financial products this afternoon. But before I hand you off to the next speaker, let me leave you with this. The whole fintech promise of speed and innovation falls apart when the foundation isn't solid. And when that foundation is a whole patchwork of partner banks, there are significant risks that cannot be ignored. Adyen's decision to secure its own banking licenses and our ability to integrate them with our single platform truly sets us apart from others because it [indiscernible] against third-party risk. It allows our customers to really control the flow of their funds, and it gives them a foundation to build for future or innovation. And believe me when I say that building a banking infrastructure is not something that we've done overnight. It required years and years and they continue still until today because banking licenses are not light permissions. They require constant certification and validation of some of the largest regulators in the world. And they speak to our ability to offer these services in a very secure and a very controlled way. We operate at that level, and we are willing to make those investments given the philosophy that's always been clear to Adyen. We stay close to our customers. We try to truly understand what matters to them. We gain their trust and we build long-term sustainable solutions. Thanks for listening. Ingo will tell you are the third layer of our foundation. Thank you.

It has been very clear that these two foundational layers has always had us to take friction out of commerce. It helps to serve our customers and their customers with full control and trust over the value chain, and that makes it very special. But the world is changing. And like we said, the of AI, increased fraud levels, regulatory complexity, it requires a new approach. And that new approach is why we introduced this third layer, dynamic identification. And dynamic identification is going to bridge the technology [indiscernible] for the next decade, how we define trust in global commerce. And I think that is crucial. We are the company that is helping to define that trust in the industry. And it could be more urgent right now because the industry is basically broken in the way how they deal. If you look at how we typically do with all kind of paperwork around static checks, how we use bank statements, passports, et cetera, just to ask the question, are you really who you say you are? But we want to answer that question [indiscernible] we're going to talk about today. And before we do that, I want to give a couple of facts. The first fact is that if you look at onboarding on average in the industry, it takes about 11 days before a new merchant goes live. We are better than that but we also have room to improve. Another data point is that about AML alerts are false positives. So we basically built an engine as the industry where 95% of the alerts are not efficient, not effective, and that's a real problem. Another problem is that up to 10% of all transactions by fraud systems for legitimate shoppers. And I think that is also a real fundamental problem that we see in this industry. And on top of that, in 2024, cyber-enabled fraud increased by 33%. And that's, of course, major if you think about this. And it's not really surprising because with AI, you can fabricate a passport, a bank statement or even a whole company in a couple of minutes. And I think that is the reason why the need to do differently. But so far, the industry response has been different. The industry response has been we built a new lock or we add some AI to the lock. But that's not really the problem. What we need is a new door [indiscernible] about how we have built that new door over the past years. Because how do we create that new door? I think that is the crucial question that we ask ourselves and that we want to show you today how we have done that. And the main thing is that we need to stop thinking about identification through static risk signals. We need to add a new dimension. And that new dimension is behavior. And there, we are uniquely positioned because behavior is very hard to fake by AI. And we have the data points on our platform what people are actually doing, how they are buying a coffee in the morning, how they're taking a taxi to get here, how they are buying a pair of sneakers online, how they're accepting payments somewhere else. These patterns are in our system, and they are not easy to fabricate by AI. And we are using dynamic identification, and we can build that basically from trillions of interactions on our platform. It's really difficult to forge this, and that's why we are so uniquely positioned, also because every second new signals come into our platform. And what is the key point here? It is not a product. It's really a foundational layer that we have built and where multiple products that we have benefit from. And it's built on three strategic assets that we have. The first one is our unique global data set containing billions of transactions online, off-line from the most respected customers that we have globally. Secondly, it's built around the asset of AI-based strategic decisioning. And that means that it's not just yes or no. No, we try to give confidence levels on if a person really say who they say they are and use that as a starting point for a decision. And the third factor is how we use regulatory infrastructure. And the regulatory infrastructure, the key thing is, and that's also what Marriette talked about, is that we had trust with regulators, but we are also in a position to redefine how we build certain things. We're not dependent on third parties to do this. It allows us to move friction out of the system, strengthen compliance and basically create a new moat for us as a company. It allows us to build a new infrastructure for trusted commerce. And I think that is the key point of today, build that new trust. And of course, on top of that, with all the billions of tokens that we have, we can add new things to this. For instance, how we can add pass keys to it, how we can add new e-government IDs to it. That's how we further improve this proposition. And what make the proposition complete are really different here? Our approach is continuous and contextual. And these are very important words, continuous and contextual. So we keep learning and we always take into account what's around us. And that's really different compared to the old model. The old model was always about, is it validated or not? Is it approved? Or is it declined? So these were all binary outcomes. And that's really different here. We built a really contextual picture of personal data and transactions of biometrics that we have on our platform or the government IDs that I just talked about. And for the trusted entities, we can do lighter checks. But the moment a risk increases, we can add additional scrutiny to what we have. Let me give three examples how we apply this in practice because, like I said, dynamic identification is a foundational layer. It's not a product, but we use it to improve our products. And the first product that I want to highlight is Uplift. And we're going to talk about Uplift more this afternoon. But Uplift, the first step in Uplift is how we use it to give a more contextual risk assessment on transactions. And this is different compared to the traditional outsourced systems that our merchants use, where if you're traveling and you're in an other country and you pay something with a high value, these are all kind of red flags. [indiscernible] And why Uplift is different is because we have this context and you get a transaction pass-through. That leads to 42% less false positives. It leads to up to 6% of more conversion. And that's, of course, key metrics for our merchants. But we can do more with this. It's also very good to spot patterns to stop policy abuse. And policy abuse for merchants is typically a margin problem. So for instance, if you think about refund fraud or free trial fraud or abuse. These are patterns that we can flag and can solve or work with our merchants to stop it. And we will tell about this more this afternoon. The second product where we're using dynamic identification is onboarding and risk. And typically, this always relied on real paperwork, like physical paperwork and it's not really telling you if this is what you need. But for dynamic identification, we have [indiscernible] how we can do this in a better way going forward. So let me give you an example. If a new merchant starts with us and the first shoppers that come in, and we have seen those shoppers before, that they are well-established shoppers on our platform, we don't have to take additional steps. It's probably a legitimate business and you don't need to take additional steps. Or if a new merchant has a bank account or a card that has been used on our platform before, we need less manual work to verify these accounts. And these are examples how we can do it better. And of course, if there are new risk signals that come in that change this risk profile, we can immediately act on it and ask for additional information. And we can take this further. For instance, it can also help us to predict bankruptcies better. And with a product like capital, that is, of course, crucial. So that's the next step in this area. The third example of a product is compliance, and we already talked about a high number of false alerts with AML. And this is very inefficient. We need to solve that. And also here, we are uniquely positioned. We can really redefine how compliance works. And I'm very proud that we are in that position. What we have done over the recent year is we have developed AI agents that basically process these alerts, and do this better than humans can. But of course, it's only possible if you have context. And this is exactly where dynamic identification helps again. So dynamic identification helps to bring context to the agents so that they can solve these type of alerts in minutes instead of the 30 minutes that a typical human takes to do this. And we will show you in a demo how this works later this afternoon. This really sets a new standard for integrity and compliance. And I think that is what we're up to as a company. We want to set the benchmark going forward and go from basically slow manual work to real-time automated decision-making. That's what is needed in this industry. Dynamic identification in is a new foundational layer of our platform. It creates the context that is needed to build trust, and trust is needed in this industry. It's the key thing going forward to shape ourselves as a company. So to make it more specific for groups around this. So if you look at merchants, of course, it results in higher conversion, faster onboarding, less fraud. For the ecosystem, it is the best defense against AI-driven fraud. And for ourselves, of course, it results in compliance but also a more scalable compliance environment. Let's wrap this up. The truth is that the industry approach is broken. The industry tries to add AI to a broken lock. They're trying to repaint a door. But we need to build a new door. And with dynamic identification, we have built this new door. We are building a foundation for risk management for the future, for new compliance procedures for the future and, more importantly, for trust in global commerce. That's the key what we want to show today. After the break, Carlo will take you in more detail through the different products that we have, what we currently have, but also going forward, what's on our road map. Thank you very much.

Good afternoon, everyone. My name is Isaac, I'm part of the Investor Relations team here at Adyen. Thank you all for being here both in person and online. I hope the first few sessions of today were as insightful you as they have been to me. We're now heading into our first coffee break of the day. That's going to be a short one. It's approximately 20 minutes. And make yourselves comfortable. There's coffee in a few different areas here of the theater. If you are here in person, so unfortunately not to those online, but if you're here in person and you downloaded the Adyen Events app, you might have just received a notification or you will in the next few minutes. That notification has a link to our online web shop. And you can view that link, select what Adyen merchandise you'd like to take home at the end of today's event. You can [indiscernible] the user name that you registered with your card back when you checked in at our office, and you will be able to pick up your orders at the end of the day back at our headquarters after the end of the event. Again, if you haven't downloaded the app, that's not a problem. We have some QR code spread around the common areas here. So just scan those, and you will be redirected to the webshop as well. Again, quick coffee break, about 20 minutes. For those of you back home, there will be a counter on your screen so you know exactly when to tune back in. See you guys in a bit. [Break]

Welcome to Amsterdam. I'm really excited you're all here, and I'm very excited to share all the cool stuff we're building today. Now before the break, Ingo explained the why. Now let me show you the how, how dynamic identification today shows up in our products and how it creates measurable value. At the end of the day, every financial operation, [indiscernible] issuing a loan onboarding of merchants, it always comes down to one thing: balancing risk and friction. You need better information about what you're dealing with. And this is exactly what dynamic identification gives us. This is exactly what this unique data set we've been building up over the last couple of years is providing us with. And it's powering the products I'm about to show you. Now we built Adyen Uplift not as a stand-alone but as our AI-powered engine, finding this perfect balance between conversion, risk and cost [indiscernible]. Decisions around authentication, fraud risk, token application, fees, routing, they should not be taken in isolation. Now the numbers on this slide, they are for illustration purposes. But they show what can go wrong with the payments. Other boxes on this screen, they represent steps as part of the payment conversion funnel. And that payment conversion funnel is much more than that of rates that the whole industry obsesses about. Merchants need to make a lot of choices for each step. And this is our thesis. Approaching these boxes in isolation results in what we call conversion leakage, conversion leakage across the entire payment [indiscernible]. Instead, you've guessed it, all of these choices, they belong to one unified decision. And this is the thing. Dynamic identification, that's the foundation for that decision. Adyen Uplift consists of five modules, each solving a particular problem within the payment funnel. The design is modular. Our customers can choose to use some of them for their payments or all of them across their funnel. Now dynamic identification is the foundational layer that helps these modules perform better [indiscernible] by creating synergies between modules. And this allows what we call risk-based optimizations and payments. Think about your own day so far. You booked flights to get here. You might have ordered a coffee in the morning. You took a ride share. Each touch point right here, it's a trust decision for us. And it helps us establish a pattern to predict whether the next action of a given shopper makes sense. And with dynamic identification, we fight fraud with precision, reducing false positives with 42% versus legacy tools and, more importantly, addressing this conversion leakage across the entire [indiscernible]. And the impact is measurable. American Eagle Outfitters sees this nice 2.76% conversion uplift for their payments. And [ Kona ] from Australia, a solid 1% conversion uplift. We have Just Take-Away, our friendly neighbors here in Amsterdam, and I'm very excited for the customer interval that will happen right after my keynotes with a Global Director of products, where we will together double-click on how they leverage Adyen Uplift. Lush from across the pond in the U.K., a 1.25% conversion uplift and still climbing steadily against a real transaction control group. And this allows us to isolate the incremental lift that only our platform can deliver. Excited. Cool stuff happening. It keeps evolving. We're working and launching a new module, Personalize, and Personalize today is in pilot with some of our customers. One of the biggest questions we hear from our merchants, also from you all, is how can we lower payment costs without hurting conversion. There are often cheaper payment methods available, but push too hard towards them and you risk losing the sale. Dynamic identification, it makes this trade-off intelligently. We understand who the shoppers, we know what their preferred payment methods are. And hence, we can personalize this checkout experience, guide shoppers to lower cost payment methods only when to do so. And the results are pretty clear, merchants lower cost without hurting conversion. And the data actually proves it. In some markets, we're seeing up to 3% in savings on the total cost of payment processing. That's pretty substantial for a given market. And it's another example of how dynamic identification turns what used to be this guessing game into now a tangible decision we can take together with our customers. We're also expanding Protect. Protect is Adyen Uplift fighting fraud. And we're trying now to help solve another pain point, what we all know as traditional payment fraud. And here, I'm referring to policy abuse. Malicious users, they exploit return policies, refund policies, free trials, promotions, loyalty programs, payment loops. And they're doing this in increasingly sophisticated ways and in a very structured manner. Now individually, these cases can seem very minor, a free trial here, a refunded item there. But at scale, they compound fast, driving material losses and operational strain. This is no longer just a [ fraud ] line item for our customers. It's a margin problem. And the fundamental challenges is these patterns, their fraud systems, traditional fraud systems, they simply weren't designed for this. And most fintechs, they can touch it. They don't have the breadth of identity signals, regulatory foundation and end-to-end visibility to transactions, not just online transactions but also in-person transactions, I'm talking about to show our customers insights like these. And this is exactly where dynamic identification changes the equation. Insight, for example, a global retailer, we could help a global retailer realize that half of their refunds we're only coming from 3% of their shoppers, crazy. And this visibility that we help them get, it helped transform this problem from a wide operational accepted burden to a targeted profitability issue we could solve together with them. Another example, retailer abuse. Merchants face both losses and brand reputation when their goods or services get resold on gray or black markets. This ranges from limited edition luxury products being bought in bulk to then be resold all the way to digital services being acquired under promotional terms and then being resold at scale. Dynamic identification, it allows us to connect the dots across merchants and platforms revealing patterns that individual businesses simply cannot see. We can spot serial abusers, apply safeguards proactively and shut down this behavior before cost spiral. And because we operate with full banking licenses, it's all clicking together inside the supervised ecosystem with the right compliance and data governance controls. Adyen is uniquely positioned to combat policy abuse responsibly at scale. Let me say it once more. This is not just a fraud challenge for customers. It's a profitability challenge. And dynamic identification helps us solve this. Now I hear you thinking. We can apply all of this cool stuff beyond just payments cycle. Starting with the very first step onboarding. Today, onboarding for any financial product is slow, repetitive and frustrating. Merchants have to fill out long forms, upload IDs, connect bank accounts, submit paperwork that we've been referring to now a couple of [indiscernible] clunky, expensive and simply delays time to revenue. Meanwhile, compliance demands are rising and AI makes it easy to fake documents, but also fake entire companies. These static checks simply do not hold up anymore. They add friction without delivering certainty. Fraudsters are laughing. We make these risk-based adaptive decisions. An example, we can start with something as simple as an e-mail address. And based on this e-mail address, we can determine, have we seen this business or its owners before on our platform based on legitimate activity. From there, verification adjust dynamically. For example, we can pop up the right government ID check, less friction, simply because we already know a user's location based on their payment. We can skip annoying manual steps like asking for a copy of a bank statement. We talked about this a couple of times now. There might be already activity on our platform proving ownership of that particular bank account. No need to ask. The result is a completely different experience. Legitimate businesses onboard smoothly, manual reviews go down and compliance becomes stronger, not slower. This year, we started putting this into practice using our platform data to fill in missing information of legal entities we are onboarding and reviewing on our platform. And by leveraging these existing insights, we have, as part of the dynamic identification, we already have been able to reduce these manual reviews, all these annoying steps with 6%. And this is only the beginning. Now once the business is up and running, the next step is access to working capital. Quick fair access to credit remains a major pain point for merchants today. We've been talking about this for a while now. Traditional lenders, they require extensive paperwork and long reviews. And young businesses tend to face rejection or very expensive terms. Dynamic identification changes this equation. By using [indiscernible] business more accurately and in real time. And instead of static forms, outdated risk scores, outdated credit scores, we're using data-driven decision-making here. And it's not just the payment behavior of that business. That's a trick we all know. It's also bringing the actual customers of that business to the equation. What does it looks like in practice? Submerchants are 30% more likely to repay when the majority of their shoppers have had in-person payments across the Adyen platform. This is a pretty interesting insight. The shoppers of a given business say something about the risk and the quality of that business. Another example, submerchants that have a solid track record of consumer payments themselves on our platform, they are 15% to 20% more likely to repay. It's a super obvious insight but one that is uniquely available to us. These behavioral signals they give us the confidence to underwrite credit earlier and with greater precision. And the result is a reimagined capital offering. We can responsibly unlock funding sooner, working capital sooner, reduce friction [indiscernible] when they need it most. Thom and Catherine will later walk you through on how that all clicks together as part of our platform solution. Dynamic identification is not about patching old processes. We've established this by now. It's about building that new door that Ingo has been referring to. And instead of trying to fix broken checks, [ compense ] AI SaaS on something that's already broken, we use behavioral signals to manage risk more intelligently. For example, a submerchant is 4x more likely to be fraudulent if they did not have a consumer payment on our platform. And today, we already eliminate 6% of manual reviews simply by intelligently linking legal entities together on our platform. And these are not incremental improvements. They [indiscernible] and the impact extends across the ecosystem, creating a virtuous circle. Merchants win with safer, faster growth. Consumers win with trusted, frictionless experiences and the whole of commerce wins with a 'higher [ center ] of integrity. This is a new standard for compliance, one that Adyen is uniquely positioned to set. And with that new standard comes new business opportunity, a platform where trust and growth reinforce each other instead of competing. The part I'm most excited about, the ultimate application of dynamic identification is referring to powering AI investigator agents. Now these AI agents, they are referring to our usage of LLMs, large language models, to take over manual and repetitive workflows that have always been very difficult and very costly to automate. And this is the thing. An AI agent is only as good as the context is given. And our platform, our dynamic identification provides the richest behavioral and transaction context in the world. And this, to me, is the game changer. This is why I believe we can make this work at an enormous scale. And this is not a theory. We are researching, building, testing and deploying these capabilities today. And I would love to show you an example from our work. When our operations team have to go through these politically exposed person alerts, PEP alerts, so established is this Jack Smith, the same Jack Smith as part of the U.S. government? They have to disprove or prove this. Our human analysts, they have to traditionally spend hours manually verifying these alerts. So they have to check potential matches. They have to jump between data sources, check public records, confirm these identities, document every single step. It's slow, repetitive and diverts time from higher impact investigations. So we built this LLM-powered agent to automate the steps, this whole process end to end. So the agents instantly analyzes a subject's global footprint, verifies their profession, cross-checks media and produces this complete structured evidence-based assessments with consistent reasoning throughout. And it's not that our agents like our human agents have to now sit and wait for all of this to be completed, but we wanted to show you the power of an agent at work and how this will change our organization the way we think about financial crime and operations. The results speak for themselves. This is already live in production. And as our teams are integrating this into their workflows, we are on track to achieve already more than 50% time savings. This is a significant first step towards our goal of automating 90% of investigations because this will allow our analysts to transform from manual reviewers into expert supervisors, focused on the most complex and critical threats and not on that waste of 95% that Ingo was referring to before. Dynamic identification is not a single product and it's not a single team initiative either. From our engineers to our compliance team to our data privacy experts, our entire organization is committed to one thing, challenging legacy controls and replacing the static checks with identity [indiscernible] company-wide commitment creates a powerful compounding flywheel. It starts with our single platform, this growing source of clean and structured data. From this data, we can build up the world's richest dynamic identification. This dynamic identification is [indiscernible] onboarding Adyen's platform's proposition, faster access to working capital for our submerchants. These products attract and retain more world-class merchants, more world-class customers. more merchants, more transactions. And with every transaction on our platform, our dynamic identification gets stronger. This is our moat. And with every financial operation [indiscernible] excited to announce Jasmin, Global Director of Products at Just Takeaway; and Gary, our Global Head of Account Management, to together unpack how Adyen Uplift is being used to leverage their payment operation and make a change and drive that conversion. And I'm also looking forward to meet all of you at the end of the session.

We talked about our layers and Uplift. But what does that mean in practice? As a former customer myself, I'm particularly excited to share story today with Just Eat Takeaway. Just Eat Takeaway is a global on-demand delivery platform focused on empowering transactions, 750,000 partners in 17 different countries. So just 2 weeks ago, I found myself in a bit of a bind, I had forgotten to order a get well gift for one of my colleagues who lived in a different country. Thanks to JET, all I had to do was do a couple of clicks on the website, wait a little bit less than an hour, this beautiful chocolate gift basket showed up at his front door, complete with Dubai chocolate, my personal favorite. Although to be completely honest, I don't know how much of he actually got to eat because he has four ruthless teenage kids. But at least the delivery got there. As part of the magic behind making that happen, we'll be joined shortly by [ Yasmine ]. And [ Yasmine ] [indiscernible] and what was formally a complicated patchwork of 7 different platforms across their organization combined it into one. And they've really seen real results out of the speed and capabilities that I can now provide. Please join me in welcoming Yasmine.

Thank you.

Yasmine, thank you for joining us. Definitely appreciate it.

Thank you.

[Audio Gap] since 2009. And we really appreciate the redo energy that you've brought since you joined your organization and the innovation you're bringing. But I have to ask you, it's a complicated business. And I'm sure you have so many stakeholders internally. When it comes to fintech, how do you think about what success looks like? And how do you measure it?

Gary, as you mentioned, our vision is to empower everyday convenience. And we want to move from 2 to 3 orders per month to 2 to 3 orders per week. That is our ultimate goal. And your question towards fintech, specifically my department, how do we contribute to that? If I simplify it for you in buckets. There is one thing that we really do is really diversifying our supply, right, looking at new verticals. We are adding groceries, we are adding electronic, we are adding flowers, chocolate, as you mentioned, right, even pet food. So we are really diversifying our supply. And we have to understand, if you change your product and service, that means that you hold checkout and payment experience from conversion, transactional cost, the refund authorization, everything change. So [indiscernible] and teaming up also with Adyen to change that and make sure that we are dynamic and flexible and can deal with that. The second part that is keeping me awake at night, I would say, conversion. And Carlo mentioned it several times, conversion, conversion, conversion in combination with the right experience and order frequency. And we all know in the industry if you work in product and tech, if the customer is experiencing on the checkout of payment something really bad, I can't add or you get blocked, 3DS, whatever, right, [indiscernible] the same month. So that is impacting my order frequency. And if we look at our company, more star is order growth. The two key metrics that [Audio Gap] That's what we are focusing on.

Got it. So order growth, definitely the North Star, and there's a couple of component metrics, one of them being conversion, of course, and then the other being with the complexity of the SKU proliferation and how you do your consumer behavior with that. .

Correct. Okay. And how do you work with Adyen and our team to help you improve on those areas?

The full journey. I mean, from checkout, payment, risk, authentication, and I am lucky to work with an amazing team. And I think they are here. I cannot see it because I have a lot of light in my eyes. But I think Lukas here and Anna, and I worked with Lukas for years now. And what I love is the co-invested and they lead by, how do I see it, with clear vision and strategy, but they balance it with a bold thinking and grounded execution. And what I mean with it, I know what our challenges are and think along how we can solve that. That is one part. . But they also know, I'm a product person, I can easily talk about tech and product for hours. So they will -- if we have challenges, they will link us up with Carlo or with the right team to talk about the challenges, it's easier for us. So it's really the grounded execution that I was talking about. This is a d*** good example, aligning with the right people and having that access like it's really convenient. So I really love that about working with Adyen.

Well, thank you. Much appreciate it. I know Luke and Anna, I think they're up there do a great job. And our ambition and our mandate as a team is to help you achieve your ambitions faster. And what about Uplift? You heard Carlo talk a little bit about Uplift. Can you share your experience with it?

So I think when -- before we talked about Uplift, it was really important that we clarify our goal. As I mentioned, active customer frequency is something that is keeping me awake, right? So when we sit down with Luke and Carlo and the team, we said, okay, what can we do to move loyal shoppers, have a frictionless experience and what do you have to offer right? This is how the conversation started. So we talked from instead of talking about the product itself. So when the team explained about Uplift and the potential, it was really obvious, it is the right balance between payment and fraud and holistic overview and trying to find, as you saw in the animation, continueversion with cost, right, but also the fraud element. And this is where we thought, okay, how can we do that? How can we implement it. And we now introduce for our loyal shoppers a way seamless experience compared to, for instance, bad actors that we felt like we need to double-check that with biometric challenges or a different way of approaching stuff. And we have seen [indiscernible].

Conversion and risk that you here. And I'm sure our audience here would probably love to hear how has that manifested itself in the metrics, in the numbers?

Okay. So I was -- we're talking about it. I checked in with my fraud expert. She's so passionate about it. I told her like, can you give me a report out what happened in the [indiscernible]. She gave me a whole essay. And I was like, oh, gosh, it was like 23 data points, a lot and she was so passionate and so positive. So I had to write it down because I know I will do it wrong. Look, Carlo already mentioned the 1.07% increase in conversion. But what was also interesting to see is that we saw our block rate drop extremely with 83%. You don't see it on the slides, but it's important to highlight that. I think this is really important because of the conversion and experience that we have. Next to that, the false positive halved. That was also incredible to read back in the report out that I got from my team. And not only that, we see 8 million, for instance, settlements without extra fraud. So it was really amazing results over and over again from the whole spectrum and all resulted in the 1.07%. From a cost perspective, look, I cherish a lot the effort and time that people put in things. So when we found out that our fraud teams, including product and tech but also the experts in the business needed 80% less time to manage the cases, the profile, that is big numbers. So we are last year, 2 years ago, as you highlighted, we kickstart the globalization of our platform, but we couldn't do it with the one platform that Tom was talking about and link it to our ecosystem, which allowed us to have a time to market with 86% -- we improved our time to market with 86%. So really great numbers. extremely proud. I know my fraud experts are proud. So thank you for that and I'm looking forward to the next steps.

Thanks. That is an incredible set of statistics, not just what we're seeing on the slide. But that 50% false positive, those are all -- that's 50% less insulted customers, right, that have been falsely flagged that want to get something that can now get it.

Exactly

So what's next for JET and Adyen together?

So I am personally so excited about agentic commerce. I think that's the future. And I do think you do need to do that in a balanced way but, at the same time, shape it together what is right for the industry. And I'm excited about that, working with Adyen and our partners and seeing how that will look like in the future. Next to that [indiscernible] in our ecosystem. And my favorite is loyalty and wallet. That is coming. So for the Dutch [indiscernible]

So just to quickly recap for our guests. JET, obviously, a very complicated, massive at-scale global platform. And we work together very closely together to make sure we're solving real [indiscernible] results you saw up here earlier today. These are metrics that have real top line and bottom line impact. And beyond that, if you think about the wallet, the loyalty piece of it, there's so much more that we can do together because it's a complicated business and they have a lot of needs that we're helping solve together. So thank you, Yasmin.

Thank you for having me.

We do have. Absolutely. So we talked about building blocks a lot today. So I wanted to share some additional building blocks for you.

I love this. Thank you so much. I appreciate it. Thank you.

Hi everyone. My name is Thom Reiter, I'm the VP of Product for Financial Products. Earlier today, we covered the foundations. Tom showed how our single platform brings us speed and flexibility. And Marriette explained us structure gives us full control across products. Now we're going to show what these foundations make possible because financial products are how the same foundations translate into new capabilities for our customers, powered by our banking licenses in Europe, U.S. and the U.K. These slides [indiscernible] to end without third-party dependencies, and this enables us to connect payments to bank accounts, payouts, card issuing and capital in the best way possible. And that enables us, our customers and especially platforms, to embed these financial products into their ecosystems. Until so far, we haven't given this area its own spotlight. It's smaller than payments but it's growing across all of its components. Now let's zoom in. Next to payments, we have banking, issuing and capital. Banking consists of bank accounts ranging from business accounts for small, medium businesses all the way up to FPO accounts for enterprise-size platforms. But it also is helping our customers to pay out their users on a global scale and it consists of liquidity management solutions to basically take away the friction between pay in and pay out. Here, you can think of faster settlement, instant cash-outs or smarter overdrafts. Card issuing [indiscernible] our customers to pay out their user base by using the card networks or for them to issue cards to manage expenses more efficiently. And capital enables our SMB customers to grow their business fast without the complexity and the negative customer experience that banks traditionally offer. These modular building blocks enable our customers to move money end-to-end by connecting payments, bank accounts, payouts or card issuing, but they also enable our platform customers to embed these financial products into their ecosystems and to become fintechs. And that's what we'll spend on this section. I'll sit down with [ Jason Downing ] from [ EPOS ] now, one of our earlier embedded finance adopters. Next up, and I'm really excited to [Audio Gap]

Hello, everyone. Hello, everyone. It's great to see you here. So Thom has mentioned these different sets of product offerings that Adyen currently have, beyond payments such as issuing bank accounts, capital payouts, liquidity services and so on and so forth. We think about designing and building them as modular legal blocks so that various pieces can be put together to form solutions that serve different business needs out there. Let's take an example to make this concrete. Please allow me to introduce a made-up platform called Peace of Mind. It is a vertical SaaS platform serving local hair salons, beauty stores and so on. My friend, Christine, runs her shop, Sleeping Beauty, on this platform. Now in order to [indiscernible] management as well as payment acquiring are a must have. And it's probably also a no-brainer nowadays to predict that Christine would want one single payment solution that can give her online payment as well as in-store at the same time. Now let's say, beyond that, what else can Peace of Mind do to help Christine to focus on growth but not logistics? And what can Adyen do to help behind the scene? In the next few minutes, I'm going to walk you through a few cool tools. And in order to do that, we are going to start at the beginning of the fund flow. So imagine a shopper like myself, I walk into the store, I got some service. I make $100 payment for the service that I just received. It's very easy for the platform to configure using Adyen so that they can take $5 as a service fee from the platform and put that into the platform balance. Whereas the remaining $95 goes into the stores on revenue balance. Now let's say that I just got one of my favorite hair style, and in order to thank my hair stylist, I decided to add a $10 tip. And I know people from the U.S. are very much used to 18% to 20% of tips, and you must be thinking; that sounds too good to be true, right? And I have to confess I learned to tip the Dutch way after [indiscernible]. Okay. So with that $10 coming in, the tip can go into a separate tips account and separate it from the platform as the shops own revenue balance. So the set of segregated balances are backed by different business accounts behind these. Okay. So with the business up and running, Christine now wants a cart to run her business spending. This is where Adyen Issuing comes in. With the issuing-powered card, Christine can purchase hair products, cleaning supplies, maybe subscribe to a flower arrangement service, who knows what they want to spend the money on. At the end of the day, she will have all of her incoming revenue and outgoing spending running on one platform with one source of transactions, one source of truth for all of the transactions, And she does not need to log into 3 different bank accounts, 2 different credit card accounts, running through stacks of receipt so that she can figure out, okay, what's my cash flow? How do I close my books and file taxes? Quickly, the months and a purchase. What does that mean? That means a number of bills is coming. So in order to prepare for that, Christine checks her cash balance. And she realized that while the business is ramping up, the cash flow is not quite at the place to handle such a big amount of bills at the end of month. And what does that mean? That means she needs and will be seeking for faster access to her incoming revenue. And you know what, this is where Adyen cash-out can help. Cash out would allow business owners to get access and make use of their incoming payment funds near real-time and on demand. So with all of these problems solved, we do help Christine to focus on her growth instead of logistics, right? So what's next? Fast forward 3 years, Christina focused on the growth of our business. She build up a loyal customer base and probably is one of the highest-rated salon hopefully, on the platform. The demand is growing. And now her shop seems too small to fitting the foot traffic that's coming in. She is going to think about expanding, right? In that moment, we all know that expanding takes upfront capital investment, and that's usually beyond the cash flow that SMBs typically runs with. And now it's time to introduce Adyen Capital. It would provide business loans that can be repaid over next several months by utilizing, for example, the Sleeping Beauty's incoming payment funds. Now that I walked you through a number of building blocks as you've seen on the screen, and you probably start to see where I'm going with this, the uniqueness of Adyen is our ability to offer such a wide range of building blocks and serve different needs of a business along their [indiscernible] to let the business choose what blocks they need, when they need it and piece them into the overall funds flow while everything still works with external financial ecosystem out there. That is a special power of Adyen. So you may think, great. But is it real? Does it actually work? This is where it gets exciting. Issuing volume has seen an 8x year-over-year growth in 2025. Capital volume has doubled this year. And the number of [ pads ] happens on our platform is on a steady 40% year-over-year growth with tens of billions of euros being transferred between Adyen and other banks on a monthly basis. Cash-out I just mentioned is a new product that we launched earlier this year. In less than 9 months, it went from 0 to hundreds of millions of euros annual run rate -- annual volume run rate, just to be precise while still in pilot phase. So all of these are built on the single platform, utilizing our banking licenses and the dynamic identifications that you've all heard of. The same layers of foundations that gives us resilience and control is also feeding entirely new growth opportunities for our customers. All right. With that, we're going to welcome Thom back to the stage and the SVP of Product from Epos Now, Jason Downing. They are going to share a customer perspective -- now this time is not made up, a customer perspective of embedded finance. Thank you, everyone.

Jason, thanks for flying all the way to Amsterdam. Great to have you here.

Thanks for having me.

We're working together for 5 years, but can you explain the audience what Epos Now is and what you do?

Epos Now is a business growth platform. We've got 80,000 merchants, mostly SMBs. They run corner shops, pubs, small venues, big venues. And we're live in 10 markets and we process billions of euros every year.

And with growth -- with high growth numbers. So that's really impressive. You make use of all the products that Catherine just explained. Can you tell us a little bit about the sequencing, how you started with payments and how it took off from there?

So very kind of similar story to the one that was just replayed to you all. In the early days of the company, we shipped point-of-sale systems and the software elements. And we would kind of pass that revenue, the payment processing revenue off to third parties. 5 years ago, we bought in Adyen and we consolidated everything. We started with payments and then we started to layer the products over each other, starting with capital after payments to give merchants better cash flow and then landing some of those funds in bank accounts, offering the cards so we could then see the end-to-end picture of the merchant. And now we have many, many merchants who will take payments with Adient and the funds land in one of the bank accounts and then spend with the card. So we're really closing the loop and providing a single ecosystem.

And so you offer your customers a full integrated experience. How important is the integrated experience that we offer to you?

That's extremely important. So because the merchant is doing KYC once and it's a single platform, I can enable the merchant to then kind of access those incremental services when they're ready, when I want to kind of push them on to the next thing. But also because Adyen has a single platform [Audio Gap] just like has Yasmine said, the partnership is wonderful. We have a really excellent account management team. And they opened the rest of Adyen up to us. We get access to experts across forward, acquiring, issuing, and your teams really deeply understand our products. They help us build together day by day. Really, I don't think we would have got this far without you guys.

That's nice to hear. We always strive for that, but it's great if you -- if one of our customers can confirm this. If we -- so basically, our promise is to help you grow and grow your customers, grow services towards your customers. [Audio Gap]

Of course, you have. I think the -- but it's the quality element that you've really delivered on. It's that depth of digital experience that the merchants expect. And I think if you pick apart -- let's say, we pick apart the capital product, you're beating the incumbent that we have. They're head-to-head same page. But because the Adyen experience is better, the customers already pass KYC, there's fewer clicks to get the loan and the loan is paid out faster. Just you get more depth of kind of nuance with the customer, and therefore, the commercial result is better both for you and for our platform.

And specifically on [indiscernible] and we started the journey like 2 years ago. What did you make us -- select us basically, while you already had a provider?

So we wanted to build a marketplace. During those 2 years, when I launched 2 years it was these ago this November. I went live in 3 countries all in one go, no around. You gave me access to Australia, which I didn't have before. Since then, I've gone live in 2 extra countries. And hopefully, Spain is going live in 2 weeks. So really, there's pure scale there. The digital experience is excellent. The unit economics are good for us and good for you. And the price to the end customer is good. It's better than the incumbent has offered.

[Audio Gap]

Good question. So the advantages of that, the digital experience is excellent. In terms of improvement, I want to see higher loan sizes. And I think those will land in a couple of weeks on our platform. But most of the merchants are also asking for better accessibility. So they really want to kind of evolve [indiscernible].

And that's, I think, something that shows our partnership. We're always listening to each other and see how we can improve.

To talk about soon. We'll expand into new markets and you're kind of unlocking that for us. It's a single platform. We can go quite easily. On the embedded finance side of things, we launched cash out, which I think was just spoken about in 3 markets, 2 more markets going live before the end of the year and just expanding that capital product and layering it into the rest of our products.

Thanks. I'm also really looking forward to the future. We're here at the end of the interview. I want to thank you a lot for coming over to Amsterdam and giving the crowd perspective on how we work together and what Adyen does for you. I know your son really loves LEGO. So you also will get a LEGO block books. But no, this is intentional because you have to fly. So what we want to do is basically let a JET delivery person delivered it at your doorstep., So you'll get it when you're back home. Thanks for joining us.

Thanks so much.

Customers experience our products and how they can grow not only the technology, but also like the customer -- the customer experience, the user base and how they make their products better and we grow together. And I think that's what we strive for. This was the end of the Financial Products sector [indiscernible] to agentic commerce. And Trevor will take you through the age of agentic commerce. Thank you.

All right. Earlier today, you heard how our single platform, our global banking infrastructure and our dynamic identification gives us the foundation that compounds reliability and learning over time. [indiscernible] allows us to let confidently at what's next, the age of agentic commerce. Now this isn't a trend. This is the next phase, the next phase of the digital customer journey. Now you probably ask yourself like, how soon will this come? And that is the real question here. We believe 2026 will be the year of experimentation. It's going to be the year where agentic protocols get refined. It's going to be the year where merchants gain confidence in this new channel. And it's going to be the year we deepen our understanding of exactly how customers are going to leverage shopping with AI. All right. So this next phase of commerce. I want to talk about three things. The first one is how this new AI-driven life cycle is emerging and how the roles are being defined. The second is our merchant ambitions. We have talked to a lot of our merchants and we listen to them directly to understand what are they excited about, but also what are their concerns? And the third is how Adyen is building the foundation for agentic commerce and how we're partnering with merchants and ecosystem players to make this happen. Now if we look at the traditional life cycle, there's four phases: discovery, selection, purchase and post purchase. Now AI is evolving rapidly. These new use cases are shown every single day. Now today, most of you are probably using AI for the discovery phase. But over time, AI is going to start to move into selection and the purchase. And when that happens, these four phases, they get consolidated, they get reduced into two and at some point, even one. And so today, when I buy this great cashmere sweater I'm probably searching on 10 different websites to find that perfect sweater. But tomorrow, I want to type in a prompt. Find me a great cashmere sweater, less than $100 size, size medium, have it delivered here just in time for Investor Day. And so the AI behind the seas is searching. It's comparing [indiscernible] science fiction. These experiments are starting to happen today. And so in the next 5 years, it's expected that $2 trillion worth of commerce will be influenced, will be kicked off, will be actually managed by agentic commerce, $2 trillion. But where does it start? Where does it begin? Where is it going to apply? And so we believe in the beginning, it's going to be things like apparel. It's going to be groceries. It's going to be marketplaces. But it's going to be in these areas where AI can quickly review a lot of the same similar product. It's going to be where automation can add real value into the space as well. But there's one caveat. What caveat is around just how much that person who is initiating this transaction wants to control and to select what they're looking for. So me personally, I don't know much about cashmere. Cashmere is cashmere. I don't really care about brands for my cashmere sweater. You might feel differently. For my scneario, this is perfect. If you have more selection, more control, it's probably going to take a little bit longer. The next one is ticketing. So you can imagine movie tickets, concert tickets, that one is kind of an easy one for agentic commerce. By me these 2 tickets [indiscernible], get seats not in the front 10 rows, a little farther back, and I want for Friday night. That's not that far away. And then we get into travel. And I know a lot of you traveled here to Amsterdam and probably spend a lot of time like myself on, okay, what flight do I want it to take? And coming from the U.S., hopefully, the flight actually makes it. And then, of course, you have your hotels, you have transportation. There's a lot of complexity that happens here. So in this case, AI solving something slightly different than the other use cases. it's solving for complexity. So we think that's also another great opportunity for agentic commerce. And then further down the road and probably quite a ways but is there is true real personalization, luxury goods, [indiscernible] again, lots of selection. It will get there but it will take a little time. So in short, we believe agentic commerce will start attacking those industries first, less selection and control needed from the user. There's a lot to compare against. Automation adds real value. But what we do expect is that over time, context really matters here. And so for example, the more you're using AI today, the more AI is learning about you. It's remembering what you did in the past. It's you remembering what brands you like. It remembers what colors you like. It's going to remember what car you drive. And so as it learns more about you, those future scenarios actually get pulled in to become more of a reality. My slide is blank. The landscape up here. We're already today seeing a lot of new models emerge. And they're all [indiscernible] we're part of all of this. And so the first one, global card networks. So with the global card networks, they're leveraging their network token capabilities that they built years ago. They're scalable, they're reliable, they're global, they're trusted. A lot of merchants use them today. But there's a challenge with those. The challenge is, well, everybody in the ecosystem scheme standards. And what about local payment methods? Will they fall into the same card-centric world? The second, wallet providers. Think of these as the Apple Pays, the Google Pays. Consumers, we all love them. They work. They're easy. They're simple. There's low friction and there's automatically robust authentication here [indiscernible] is that merchants actually received the least amount of context in data when a wallet transaction occurs. The third one, protocol led innovators, Think of these as the AI agents themselves. They're developing some really powerful agentic protocols today. And their goal is to make that checkout [indiscernible] together, which is fantastic for the consumer. But scaling that also becomes a challenge because now, every merchant entertainment service provider has to have bespoke integrations with these AI protocols to get them to work. And then lastly, we're seeing a few merchants take list themselves. They're building their own agentic protocols. But that is a challenge too because that means they got to do that for every AI agent they work with. And today, there only maybe a handful that really matter. But over time, there could be hundreds [indiscernible] experience. And so when you take a look at these four different models, we see some real value. We see some real amazing experimentation that's going to happen that we're all going to learn together as an industry. But we see some real challenges. The integration for merchants is complex. The lack of data [indiscernible] partners is an issue. So we don't see success here on who wants the interface. We see success on who is enabling interoperability and the trust and putting the merchant in control. And when we look at these different models, for us, when we see this new innovation, we go back, we begin with the customer. So we've talked with over 100 different customers. We talked to C-suite folks. We talked to the people who actually run payments day-to-day. We talk to folks in retail, digital content platforms, hospitality, travel. All of them said, we're excited about the revenue opportunity. We're thrilled about the new channel. But we have concerns and we have several of them. And we said, let's hear them. Tell us because we're building something for you. And what they said, the #1 thing every single merchant brought up was, disremediation between us and the shopper. How do we ensure we maintain our brand, our loyalty, our relationship with the customer. And so that, we said, okay, we need to do a couple of things here. One is we need to make sure that, that merchant gets all the data that they normally will get if the transaction actually occurred on its own system. But we also got to make sure that, that shopper is initiating the transaction, that AI the agent doesn't go rogue and start buying things on. The second thing we heard, lack of flexibility, that's a concern. And so merchants asked us, they said, look, I don't want my payment stack to be stuck and forced to go down a single path. And with respect to that, we said, all right, we need to make sure, again, that merchants get the data they need to run payments, how they want to be able to route transactions, where they want, store tokens how they want, maintain their checkouts, subscription flows. That flexibility has to work. Freedom of choice must work in this space. Fragmentation. The merchants came to us and they said, we're worried about siloed islands and complexity. And for that, we said, you know what, we need to spend a lot of time and energy talking with different ecosystem players to make sure that we have standard protocols in the industry, open protocols in the industry and simplify complexity for these merchants. And then fraud. We talked a lot about fraud already. They said, I'm worried about AI agent fraud or AI agent is going to commit fraud. And how did the speeds work in this new world. We're leveraging Protect. And so we're extending to protect for agentic commerce and that real-time AI evaluation of all the transactions that we do today will automatically just work in this new world. And then regulation, the last piece. And they came to us and they said, yes, but this is worked globally in the world. And it's true, and we recognize that in Europe, for example, it's going to be a little more challenging with 3D assets required, PSD2, PS3. And so we do believe the U.S. are probably one of the first to actually adopt it a little quicker. But reality is we have a global compliance framework, a global set of processes, a global team that's already built to be able to handle this new type of channel. And so the takeaway here, customers, they're demanding infrastructure. So in this new ecosystem, we see Adyen as a universal translator for agentic commerce. We see this us as the bridge for merchants to be able to manage and process any payment they want through any AI protocol through any AI agents, one API, one platform, full control. And this isn't just about payments. It's about data integrity. It's about trust. It's about identity. When you combine all these three things [Audio Gap] And how we want to translate those now to our own rails and our own architectures is what I want to talk about next. Now Tom already talked about this later principles are, but I think it's really important that we talk about it again and restate these. The one thing that I want to call out that is super, super important is Adient was built for this moment. Adient was built for this moment. We've already built the tokenization, authentication, Protect, a single platform. We've built a foundation already. So the principles that our merchants are asking for already fit within that. But let's go through them. Number one, verifiable intent. This is all about creating a verified mandate. And the point here is making sure that, that customer, that shopper is the one who's really's [Audio Gap] Second, merchant control flexibility. So we're using a universal token. And that token is what translates and brings over all the context, all the data to the merchant so they can manage their payments the way they want. They can continue to manage cards, wallets, process local payment methods, card on file. But they have that flexibility just as they do today. They don't lose that. The third, universal recognition. And so the days of cookies and log-ins, those are over in this new road. It's chat, it's voice. And so how do we make sure that, that same user now through these new mechanisms still gets tracked through all these channels, this new channel no matter what payment they're using. And again, we're going to leverage the universal token, super important. And the last thing is ownership. One of the key things about ownership is data ownership. And for data, even though the AI agent is collecting it, the merchant has to own the data. They own the data with that customer. And it's not only important for this transaction today that they're trying to conduct. We go back to those four phases earlier that I discussed, the post-purchase. How do you give a refund or exchange or handle that customer post that purchase? You have to have the data that exists. So all these principles in the past, but reality is we made just an adaptive channel, and that's what's really formed out these principles. And the last thing I'd say is that everything we build here, it just works. There's no separate integration that merchants have to take and consume to get access to this foundation that works today. So the vision is already in motion. We're working with the largest ecosystem players. today. And we're ready. We're ready to test. We're ready to [indiscernible] And we can do that because we don't need any new major investments. We've already built the foundation. And so here are a handful of the major players that we're collaborating with today. Open AI, we're collaring with them on their agentic commerce protocol standards. For Visa, Mastercard, for Cloudflare, we're working with them on how to identify a good versus a bad agent. Now this is important. I previously used to run a fraud team at a merchant. I thought that bots are always bad. Bots are now going to be good in some cases. Getting this right is critical and on the payment agent protocols and the onboarding processes. But each one of these collaborative efforts, it goes back to what Tom has said earlier. It's about the adaptability, is a design principle. This is key in what we do. And so we're not reinventing our platform. We're extending it [indiscernible] process today are the same rails that will process agentic transactions with the same compliance, the same reliability and the same observability. It's all built in. So let me close with this. Every major shift in commerce over the years, whether it was Unified Commerce and all of that uncertainty. But those that were the winners were the ones who invested in the foundation and they got it right and they invested early. And they focused on durability, interoperability. And so the full potential, it depends on is it robust enough to be safe and compliant? Is it open enough to be interoperable across partners? Is it neutral enough for merchants to be able to leverage it and manage it end to end? This is the space that Adyen is going to play in. For merchants, this means confidence to innovate without risking their brand. It means direct control over the data [indiscernible] starts to mature and excel. They can scale with it. Our philosophy hasn't changed. We listen to our customers. We build what matters. [Audio Gap] Thank you.

Nice. Thank you, Trevor. We're now heading into our second coffee break of the day. Grab yourselves a drink, work on your notes if you want to. And please be back here for our third and final block of the day, where Maggie will have a fireside chat with our CHRO Group, followed by a financial update by Ethan, our CFO. See you guys in a bit. [Break]

Hello, everybody. We hope you had a great break and got some coffee. My name is Maggie O'Donnell for those I don't know, I'm on the Investor Relations team here. And I'm very excited to be joined by Brooke Nayden, our Chief HR Officer.

Hello, everyone. Thanks for joining us here in Amsterdam.

So you've heard today about the foundation, the layers of our foundation and how all the pieces fit together. Now we want to talk about the most important part, the people who bring our ambition to life. And so that's why Brooke is up here to have a conversation with me. We have coffee. I hope most of you have had a cup of coffee in the last 20 minutes. We are doing what we call a coffee chat. At Adyen, this is a really core part of our culture. So you all got to go into the lobby. You saw employees sitting, having a very open direct conversation, probably just in the middle of the lobby, and that is very common here. The coffee chat is a core part of our culture. And so I want to start there. What is the coffee chat really? And why is it important to us?

Yes. So I'm glad you all got to actually come to our office and see it alive a bit in the middle of the day because our coffee chats aren't just about giving employees a caffiene addiction. That's a bit of a side effect I hear. But it's really that we want to create spaces in our office where our team can come together, debate, share customer stories, deep dive on to dilemmas, and that's when our culture really comes to life, and it really shows you our way of working. So more than just a cup of coffee, but really the discussions that go along with it.

Yes, exactly. So part of why we wanted to do this session is that people and culture is a core part of our business model here. If you've been following us or have been investing in us for a long time, you know that. And we wanted to answer the really important questions that all of you typically ask us. So I want to start with the most prominent question because we are here in Amsterdam. Obviously, this is still our hub. This is where we were started. Some investors see this as a differentiator, so something that really sets us apart. We're different from the other Silicon Valley companies, but others see it as something that might be a restraint on our ability to grow globally. What's the right question that they should be asking? And how do you think about our global growth?

Yes. So I guess the question I imagine you all are asking and you should ask, and it's the same question that we ask ourselves is, does Adyen have the right global team to build our platform and support our customers around the world? It's a simple question and maybe a more complicated answer. Of course, we want to say yes, but I want to give you a little bit more to show how we think about it and how we build over time. So Behind me, you can see this image. So basically, the circles, the green circles are really there to show the size of our customer base. And this is from 2022. So this is an approximated image of 3 years ago where our customer base is and then the number is the number of people in the commercial team in that region that support those customers. So that's 3 years ago. Let me bring you up to present day, where you can see great that we've grown our customer base in each of these regions, but also that we've made key investments in these commercial teams. So these have been intentional investments, and you can see that the percentage of headcount growth outside of Europe has been faster because that's following the growth of our customers. So if we think about our top 20 customers, just as an example, only 5 of those are headquartered in Europe. And in our top 20 customers, they are working in 80 distinct countries at any given time. So when we think about kind of the organism it takes to support our customers, that is a team spread around the world working together. So that's the commercial side. I think on the technical side and the teams that are building our platform, we see kind of 2 priorities. One, we've seen over time, we want those teams to be closer to our customers as well. So we've built tech hubs in different parts of the world, changing from our previous strategy of mostly being here in Amsterdam. However, we also want those teams to be grouped tightly together so they can collaborate. So that's kind of how we've thought about investing in our team and where people are located.

Makes sense. All right. So let's double-click for a minute on the commercial part of it. So 2 years ago at our Investor Day, we were talking about a very large investment that we made in the sales force. Obviously, it's been going well. We talk about the new cohort, but I'm curious how you see it. How do you measure the success of the commercial team?

Yes. So maybe to start off with, when we say commercial team, we also don't just mean sales. We've got an amazing shout-outs to our account management org earlier today. But when we say commercial team, we're really talking about our sales team, our account management team, our partnerships team, our marketing team. These are the teams that come together to form what we call the commercial engine, the engine behind Aden. But maybe to call out a few things. On the sales side, we've been talking about that investment, that investment we've made over time, really focused in key markets like the U.S., but also more emerging areas for us like Japan and India. We've been very intentionally building those teams over the last few years. And we're seeing the results. We see shorter sales cycles. We see larger average deal sizes. In general, we see stronger merchant cohorts. So these investments are not hundreds of people, but they are very intentional. We look for very specific talent in very specific places, and we get them going. On the account management side, we're always repeating that 80% of our revenue or more is coming from existing merchants. I think you all heard today from our customers, which was unplanned, but very well fits my narrative that it's our account managers and the relationships that they form with their customers that really grow our business. They unlock the rest of Aen and bring it to our customers. And that is an investment that we'll continue to make. As our customer base grows, we'll continue to build that team around the world. So I think you all should expect that because there is scalability through technology and as we build these teams. But in general, we're an enterprise business and those relationships are super important. So we also won't be shy to build that team. So if I was going to summarize all of this, sometimes it can become mis numbers and adding numbers to a page. For us, it's not about just adding headcount or growing the team, it's about adding impact, and we try to really measure that and hold ourselves to a very high standard.

Yes. So on impact, I think one thing that's really interesting is our approach to hiring for AI. One of the things that investors tend to do is follow our LinkedIn page very closely and judge or have an opinion on any role that's posted. So if we're hiring for a role in San Francisco in AI specifically, they think that we are just getting started on it. It's the first time we've ever hired for AI. Obviously, that's not the case. So how should we think about innovation and how we hire for tech roles?

I'm seeing some smiles in the audience. So thank you for keeping an eye on our job board. We're always hiring, apply. No. But joke aside, we've been building this team for the long term, right? And building a product that uses great technology and prioritizes scalability is nothing new for us. I mean you saw it on stage today, right? None of this is stuff we've built in the last month or 2. Tom talked about the core of our platform and that, that core allows us to use technology and automate. Carlo shared how AI powers products like Uplift. Trevor shared how we're looking at Ientic commerce and what we're building along with that. So I guess the message I would say is like we haven't just discovered AI. We haven't just discovered incorporating new technology into our platform. But at our core, the approach is pragmatic. We test things, we listen to our customers, and we only implement something if we see that it adds real commercial value.

Yes, absolutely. So how do we think about AI, I guess, from an employee base perspective. People are hoping for us to get more leverage by just using AI and not having to hire as many people in the future. How do... Yes, lot of replaces with robots, exactly. How does AI play a role in our hiring plans?

Yes. So maybe the starting point is that we've always had a very intentionally lean team. We spend a lot of time talking about investments that we have made. But overall, I think if you compare us to legacy players or other Fintech, we have quite a small team really delivering a lot around the world. And that's because automation has been at our core and this idea that every person should multiply their impact and that we use technology to scale ourselves, like that's been true at Adyen since I joined 8 years ago. So that's not a new concept. But now we have many different types of AI tools that just make that easier and more accessible for more people and more teams. I love the example that Carlo shared, right? It shows how AI is changing the style of work and actually showing that each employee can do significantly more. And I think that's the way that we think about it from a people lens is not where can we cut things and replace it with AI, but actually how can we move faster, do more, have more impact with each person that we have. And I think we're only able to do that because we've had a lean team from the start because we've never had highly repetitive work and large, large teams that could be automated, right? We were always automating along the way. So that puts us in a really strong position today.

Great. I want to shout out our finance team. We actually are one of the -- I think, the #1 team using internal AI tools. So very cool. I want to end where we actually started the day. So Peter had mentioned that we are on the path to becoming one of the largest fintech companies in the world. Clearly, from your answers, it seems like you think this is the team that is going to bring us there. What gives you the confidence that, that's the case?

Yes. So yes, to end where we've started, this people layer of our foundation, it's our culture. It's our culture that gives me confidence. And it's not because our culture is just something that lives in our lobby, which you saw. It's because it's what shows up for our customers. So I'm going to share a quick story. We had EPASOW here today. I actually met the COO, Richard of EPASNOW a few months ago at one of our events and something he said to me really stuck with me. He said, someone recently showed me this agent formula, your values, but it's funny, I had worked with your team for so long that I actually could have like paraphrased almost every point just from working with your team. And obviously, as a people leader, this is exactly what you'd want to hear from your customers. But to me, it shows something specific. It's that our culture is not distinct from how we show up for our customers or what we build. When I think about our ambition, this is how we reach it. It's through our people, it's through our customers, and it's through our technology.

Perfect. Let's leave it there, and we're going to bring up Ethan to close out the day. Thank you.

All right, everyone. Let me be maybe the last, maybe the second to last, but definitely with a lot of gratitude, let me thank you for coming to Amsterdam. I really appreciate it. Spending the time with us and investing your time to be here with us for a full day presentations is really helpful in understanding our long-term story. And that's exactly what I want to share with you all now. I want to talk you through the opportunity that we're going after. So as mentioned a few times before, we are becoming one of the largest financial technology companies in the world. That's the ambition. That's the opportunity that we have as an organization. And before I talk about what that represents for the future, I thought it might be helpful to look back, look back at where we've come from and how we've built Adyen over the last decade. Back in 2015, we processed EUR 32 billion in payments volume. Now I wasn't there yet, but that must have felt like a lot of payments volume back then, I can imagine. And over the last decade, we've scaled it to over EUR 1.3 trillion in payments volume. That's a 45% CAGR over the last decade. We've shown a proven ability to scale our platform and with our customers over these years. And that EUR 1.3 trillion is the basis for our future growth into the next decade as well. So let's talk about what this means in terms of the total market that we're going after. Here, you can see 2015 again. You see the EUR 32 billion of payments volume in that little green square in the bottom left of the screen. The bigger white area, that's the total payments market. And back then, that was EUR 18 trillion. A few years later, that market had grown to EUR 20 trillion, and we were EUR 159 billion. This is when we went public back in 2018. Today, the market has grown to a whopping EUR 34 trillion. And we represent, again, that EUR 1.3 trillion green box you see in the left corner. Now what you see here is that over time, the market has grown. It's grown quickly. It's doubled, and Adyen has grown much faster. We've 40x over those 10 years. That's significant gain in market share over those years. And how do we then think about which part of that market is addressable for us? We think the vast majority of the EUR 34 trillion is truly addressable for Adyen. We've taken out China, we've taken out sanctioned countries, and we're left with EUR 26 trillion of this market, which is addressable to us. It's addressable because we've added capabilities over the years. We've added in-person payments. We've added a platforms offering, which helps us go after SMBs as well together with our larger enterprise customers. And that means that we represent today EUR 1.3 trillion in an addressable market, which we size at EUR 26 trillion. So what does that mean going forward? Well, first, that's just 5% of our current market opportunity. The market is expected to double in the next 10 years, again. And while it's a very fragmented space, the largest players in our space, just in payments volume, they do 3x the market share that we have today. This is the true long-term opportunity that we're going after to gain share in a fast-growing market. That is the opportunity we have in the years ahead. It's a very, very significant one, and it's the one that gets me most excited. And that's just payments, right? Because we also spent a lot of time talking about embedded financial products today. It represents a significant additional opportunity for us at Adyen. Now we've talked over the last few years about shifting reporting more towards net revenues from volumes. That made sense because of our pricing model, right? We have a tiered pricing model based on the enterprise merchants we go after, but it also makes sense for us because we're going after more products. And some of those products don't always have volumes associated to them. So we've sized the addressable market in financial products according to the revenue opportunity we see. And let me show what that looks like here. We've sized capital issuing and bank accounts. right? These are the 3 biggest opportunities we see. Yes, this will also be online after the presentation, but it's great, take your pictures. It's EUR 127 billion of revenue opportunity, right? This is just the embedded financial products revenue opportunity. This is how we go to market with our platform customers to win, right? And it's a mutual incentive. This is the revenue opportunity for them, too. We go together -- it's how they monetize and how we monetize together. And that's the mutual incentive that we think will drive our success in financial products. And not only is it EUR 127 billion today, but it's expected to grow 20% annually over the coming years. So again, another fast-growing market, another very sizable market, right? And you can compare our current business. Last year, we did EUR 2 billion in revenues compared to this EUR 127 billion, right? So 2 very sizable market opportunities to fast-growing markets that we're playing in. That's what excites us. That's the true long-term opportunity at Adyen. Now I want to take that back and connect it to actually how we look at our growth over the next few years. And to do that, I want to use the same framework that we talked about a couple of years ago. I want to talk about the building blocks of our net revenue growth. So let's look at how we built that up back in 2023 at our last Investor Day. This is what we shared. And we largely see these building blocks very similarly today as how we saw them back then. And I want to run you all through how we think about each of them today. Let's start with market volume growth. The way to think about market volume growth is essentially it's the growth organically of our own customers. So as they grow, we grow. That's what's represented here. If you look at how market volume growth has developed over the past years and also into the future, you see that, yes, there were some strange years during COVID. I think everybody can understand that. But besides that, we've seen it stabilize at a high single-digit level, and that's what's expected for the next few years. So we think that market volume growth on its own, growing with our customers, that will drive high single digits growth over the coming years. The second building block and the largest one for us is how we expand and gain share of wallet with our customers, our existing customers. I want to show you a few charts which help explain why we think we can continue to add significant share with our existing customer base. The first one I want to share is this chart here. What you can see is that as you move to the right, you see customers who are longer on the Adyen platform. And the percentage that's shown, that's the percentage of volumes, the share of wallet that we have on average with these cohorts. The takeaway is that if you've been longer on the Adyen platform, you have a higher share of wallet with us. And this is an average, right? There are customers who do 100% of their volumes with us. There are customers who do very little. But on average, we see that our share of wallet increases, the longer customers are on the platform. And that comes back to everything we talked about today. That's because they get better -- a better product because of the foundational layers we've talked about today. That's because they get better service because of the teams that we're building. And this is ultimately what we think can drive a significant part of our growth into the coming years. We also didn't want to just share it from our perspective. We had a few great customer examples today, but we wanted to also give you a view on what our customers say. So we shared this also 2 years ago, we wanted to give you an update that we still have leading -- industry-leading NPS scores, and they're continuing to go up. This is the representation our customers give back. This is the feedback they give back to us about how we're performing, both how our product is performing and how our teams are performing. This is what truly gives us confidence that we can gain share over the coming years. We both have the base to grow from and our customers like to work with us crucially. The next building block we have is our tiered pricing impact. If you look at the 2 green bars on the left, that's how we grow volumes with our existing customers, and we incentivize them to do that. So we give them better pricing as they do more share of wallet as their businesses grow faster with us over time, they get the benefit back. Here, we've sized that similarly to how we have a couple of years back, negative low to mid-single digits. We did that because we feel we're in a similar pricing and competitive dynamic to them. Our next building block is how we win with new customers. That's represented in these 2 building blocks. So both new wins, think about that as the first year you're on the Adyen platform and the ramp of previous year cohort. Think about that as the second year you're on the Adyen platform because we employ a land-and-expand model where we start small and grow over time. I want to share this chart with you, which shows how cohorts of new customers have developed over time. Again, some different buying behavior during COVID. But the general story is that over time, this trend has increased over time. The size of the new cohort has become bigger. We are able to add more and larger customers to the platform over time. And you can especially see it in 2025 with the biggest cohort we've had yet. This is because of investments we've been making in our team, right? We talked about it in 2022 and 2023, especially. We made bigger investments in the team. We're continuing to make strategic investments in the team, but also because those team members are longer with Adyen and they become more effective over time. And this is what we see in the first year. But if we then look into the second year, we see quite consistently that the second year, those customers contribute 2 to 3x the growth that they do in the first year. So they go from low single digits impact in year 1 to mid-single digits impact in year 2. Everything I've shared so far is the same building blocks I shared back 2 years ago. What's new is that today, we want to add in financial products as a new building block to our growth. We've talked a lot about financial products today. We're really excited about the potential. Our customers see the benefit, and we think we're really at the point to start to see strong traction also financially. Issuing is a product which is furthest along. And I want to show you how issuing volumes have developed over the last years. We took the longer but better long-term outcome approach for our customers, which was to build it ourselves, build it on our own licenses and own it completely end-to-end integrated. And while that took some time, we're starting to see that really pay off. We feel we're at an inflection point with our issuing volume, growing up to now EUR 6 billion we expect for 2025. And capital and accounts are also products we're very excited about. They're earlier in their maturity phases, but we think we'll get to this point as well over time. And while we're really excited about this, we also know that this is additive to the payments business, which is, again, $1.3 trillion in payments volume, it's growing quickly itself, too. So we size this as approximately 1% of our growth over the next few years. Over time, we think that this number will go up. But we're very focused on driving this success with our customers and scaling these products in the way we've seen issuing take off. When you put these building blocks together, what you see is a framework for our growth, a framework built up of multiple business levers, not that all always run together in tandem, but that are diversified and that will drive our growth over the coming years if we can continue to drive the value for our customers that we've talked about today. We're confident in that. And that's why we've also shared our expectation that in any given year over the next few, we expect growth around 20%. Now let me frame that in the sense of our guidance. I think most importantly, we think about our long-term opportunity. The long-term opportunity comes from the explanation I just gave about the addressable market. In relative terms, we still have so much opportunity to grow in our market, both because it's growing quickly and because we have a limited share compared to others in our space. There's lots of room to grow. We're also expanding to other products. All of this provides us a long-term growth runway we're very excited about. Over the next few years, we expect that these will continue to be the building blocks to our growth. These will be the levers to drive our growth in any given year. And given that our growth isn't linear, right, the individual size of these building blocks are dependent on, for instance, road maps or priorities of our customers. They're dependent on how fast our own customers grow in any given year. We want to give the visibility that we have, which we get around 6 to 12 months out, and that's why we want to commit to giving our guidance on an annual basis. Now we set this guidance 2 weeks ago, and we'll continue to leave this unchanged with an update expected in February as we refine that. That's the plan also going forward. We plan to give our visibility, the view we have on the next year's growth. Now how are we going to invest in this? How are we going to drive this growth, this opportunity? We plan to continue to make disciplined and deliberate investments to drive our growth. So where do we invest? Well, we invest primarily in our team. Our team is about 75% of our operating costs, slightly up since 2022, but relatively stable over the last few years. This is how we can invest in driving growth in the business. I wanted to give you a few examples of what that actually looks like, where we actually invest in the team. The biggest areas are tech and commercial. In tech, we invest in our engineering and product teams. They build solutions like EFP, right, solutions we've been working on already for years, but that we'll continue to enhance and iterate on, build out our uplift suite, and they build out other products like our local payment offering in markets key to our success like in India or in Japan. We build out our commercial teams. We've talked a bunch about account management today, which is great. We build out our account management teams as we add more customers. They help drive growth. They help support our customers. We're growing our sales teams to make sure that we continue to drive further growth in our new cohorts given the sizable opportunity we have, and we build functional and regulatory expertise, which supports that scale. Importantly, we're also making infrastructure and AI-enabled tooling investments to help our people do their best work and make this a place where we can best utilize them and their capabilities. And we've seen the benefits of this deliberate approach over the last few years. Since 2023, when we made more significant investments in the team, we've seen our revenue per FTE scale over the last few years quite significantly. We're seeing both the operating leverage of our business model and the ability to invest in the organization grow together. We want to continue to do that to make investments in the organization to drive the growth over future years. And that's why going forward, we expect to increase our EBITDA margins to levels above 55% by 2028. It's again finding that balance of driving the right level of growth in the organization while still being deliberate and strategic about where to invest. And to wrap up on the financial objective side, we've left our CapEx objective unchanged. We continue to expect to maintain a sustainable capital expenditure level of up to 5% of net revenues. Let's move to capital allocation. We've talked a lot about growth and growth continues to be our main focus as an organization. We're going to continue to take the same approach, which is focus on sustained investments in the organization. We think the strength of making those investments will bring the best shareholder returns, those shareholder returns being driven by the growth of our business over time. We also see that the strength of our balance sheet positions us really well in 2 ways: one, with our regulators, think about that foundational banking layer that we talked about earlier, but also with an industry-leading credit rating, which helps support the growth of our financial products. And lastly, we want to remain flexible. We have such a large opportunity ahead of us. We want to remain flexible to capitalize on organic or inorganic opportunities as they arise. So let me leave you with 3 key takeaways from today. The first and the most important for me is that we are on the path to be truly, truly becoming one of the biggest Fintech players in the world, and that means significant growth from here, both in gaining share and in markets which are fast growing themselves. This is the opportunity we are first and foremost going after. Second is that we have multiple levers which are driving our growth, continues to be a focus on growing with our existing customers. We continue to focus on adding new ones, and we're adding more products that are starting to come through, financial products to be specific. And the third is that we're going to continue to make intentional investments to drive growth. Those investments are going to be strategic. They're going to be direct where there's impact, as Brooke's said. But we're going to continue to make those investments over time, over the next years because we think we have a major opportunity for us in the years ahead. And with that, thanks again for joining us, and I'll pass off to Maggie, who will get us ready for the Q&A section.

All right, everybody. We're going to take a few minutes to get all the chairs set up. I'll do first a quick recap. So we talked about the foundation today, the 3 different layers of our foundation, how they all fit together to help us set up for growth for the long term. These 3 layers of the foundation, they are actually key decisions that we've made as a company over time that are setting us up for whatever comes next. So these aren't just things that we're picking out to name today. They're really, truly, really key decisions that we've made over time. They all translate to growth over the long term, and we're going to continue to invest to help that happen. So I'm going to invite up all of the speakers from today to come and join me on stage. The way that we are going to do this is that Isaac and my colleague, Paula, are going to come around with microphones. I will point out who -- if you have a question, raise your hand. Josh has a question already. We're ready. And I will -- they'll come over to you and you the microphone. If you're comfortable having your face on screen, stand up. Also please announce your name and your firm if you are open to doing that. And then I will take the question and direct it to the right person on stage. Mo and Josh, very eager, very eager with their questions. I see you both. You can take your hands down. Do we have enough chairs? I still... I'm going to take this one. All right. Where do we have Paula? Do you mind handing one over to Josh over here? Issac is going to bring it over to Josh.

My name is Josh from Autonomous Research. Two questions. Ethan, you used the word inorganic. I've covered Adyen for a long time. I've never heard Adyen talk about inorganic opportunities. Is that a change? Is Adyen open to buying things? And then the second question is about Agentic Commerce. Is the law set up to deal with this? Do we need new case law? I'm just thinking of examples when you have a bad purchase. I tell the agent to book a romantic weekend for my wife and I in Paris, and it books a weekend in Paris, Texas. I'm not happy about that. Who's on the hook for that? Is that going to be settled?

Let's start with Ethan on the first part. Netflix movie about this recently, I think. Trevor, do you want to take the second part of it after Ethan? Okay. Go ahead. Do you want to start with the first part on the M&A.

I understand where the question comes from. I think for us, the strategy is still the same. So this is not a change in strategy. I think what we saw very clearly is that taking control and owning things yourself is the best path forward. That continues to be the best path forward. That's also why we haven't done anything in an inorganic way. At the same time, it would be naive to say that we shouldn't look at what's available in the market, especially as you broaden your product suite. We just haven't seen anything that made sense for us. So it's not an active part of our strategy. The active part of the strategy is build organically, grow the business, build it in-house, but we want to remain flexible for both organic and inorganic means going forward. And that's not anything new. That's always been the case for us.

Yes. I think from my standpoint, so we're early days. We're early days in trying to understand exactly how the dispute process is going to work. I think the expectation is that the merchants for e-commerce today, the merchant is typically held for the liability unless some sort of authentication might occur. But this is why we're investing in authentication and authorization and making sure that we actually pass the merchant all the information they need to help protect themselves and that stand in to help prevent fraud just as we do today for the existing transactions. So we see this really as another channel that comes in, no different than it is today. But that's also why merchants are concerned about here, right, is they want to make sure that there is the same evidence. I can imagine a world maybe where the card networks will reevaluate the compelling evidence rules, for example, but -- so there might be some changes that come out of that over time. But ultimately, it should flow relatively the same as today, but it also shows just how important it is for us to help our merchants protect every single transaction as we do today.

Great. Thanks for your question, Josh. Mo, go ahead.

It's Mo from Goldman Sachs. Really helpful. First one is really on the kind of growth algorithm. You talked a lot about the sort of framework. Can we perhaps flip it the other way around and look at the kind of pillars and how you kind of think about that growth evolution and how the business mix changes kind of by pillar? And connected to that, the sort of -- when we look at volume sort of take rates, you're starting to roll out monetization, particularly with uplift on new products. How do you expect that sort of disconnect between volume and sort of net revenue to evolve? And then the second was again on Agentic Commerce, maybe for Trevor. You talked about the ecosystem and everyone you work with. Could you give us maybe some case studies with some of the merchants that you're working with already on the Gentic AI? And who else in the ecosystem that you think from a tech partner standpoint is still missing to add?

Ethan, do you want to take the first 2?

Sure. So in terms of the pillars, I think what you've seen over the last few years is that the platforms has been our fastest growing. Also, if you look into our newer cohorts, you see that a bigger proportion of those cohorts is moving towards platforms. And that's a major opportunity for us for multiple reasons. One, because it's a multiple region opportunity, right? A lot of these platforms are looking for offerings which cover multiple geographies. They're also looking often for a unified commerce solution, right? So also in-store components next to the digital one; and there's an opportunity for embedded financial products, which is significant similar to the example that Catherine shared earlier today. So I would say that's the biggest shift in mix over the past years and also what I would expect to continue is that given where the new cohorts and where our pipeline is at the platforms would continue to be fast growing. In terms of what that means maybe from a monetization perspective, what we typically see is that the size of the customer is the biggest determinant, right? So it's much less tied to the pillar as it is tied to the size of the customer. And if you think about our monetization strategy going forward, it continues to have a tier pricing component to it, right? That's what I shared in that third building block earlier. But the way to think about Uplift specifically, is that there are components of it which are monetized. Think about our Protect module, which is our fraud tooling? That's monetized separately and honestly, it always has been. What is different over time is that Uplift should drive more volume to the platform. It should help us gain more share of wallet with our existing customers, it should help us win new customers. And there are components of it that we would monetize, but we didn't call it out separately as a separate building block because that's less significant to the opportunity. The opportunity is providing the best performance to our customers and helping them grow on our platform.

Right. And then on the customer one [indiscernible]?

Yes. I think it's really fascinating. And I thought about customers almost every day, right? And we have this whole spectrum. And there are some customers who are just dabbling, they're interested, they're curious. They're looking for us to help consult them on what they should be worried about, what should they be thinking about but they're not the fast movers here, right? They're kind of waiting, they want to kind of see what happens. And then you have the other side, which is definitely quite a few merchants who want to go first and who want to pilot this and don't want to miss it, and they want to be the first ones out. And those we're seeing are definitely more in like the travel, the OTAs, the apparel, and even the ticking a little bit I would say as well. And so with them, we're spending a lot of energy with them and also [indiscernible] on working through, okay, what does this experience look like? What does their customer experience look like? How do we protect them? How can they leverage our authentication on Protect. And so we're still early in the experimentation on working through what those scenarios look like. But we're definitely seeing quite a few of them wanted to move fast. And I some part your question is like which players are still not fully involved? I think we have more work to do with issuers as an industry. I think there's been a lot of really great discussions so far between the merchants, the AI companies and ourselves. And we're starting now to talk to the issuers because at the end of the day, like, they can start blocking these transactions as well, right? And that's just really important is every player in this ecosystem has to want to make this work at the end of the day to be successful. I think we have a little work there to do as an industry, but we're getting there.

Thank you. We've got Justin in the back.

This is Justin Forsythe from UBS speaking. First, I want to start off with a qualitative question around the guidance. Ethan, you're not getting away too easy. So first one, [indiscernible], great shot with EPOS now there. I caught that drop about the loan size increase point. If you just wouldn't mind elaborating on that a little bit more. So maybe what the parameters in place today are? Any restrictions on the amount or the size of loans that you're issuing? And how you expect that to change if that's a more broad platform change that's upcoming? And maybe just more broadly, how do you think about the growth rate and the sizing of capital? I caught the 2x growth rate in '25 off of a low base, how do you think about that scaling forward? And maybe you could also comment on issuing volume, clearly growing much, much, much faster? Where do we see that going from a volume perspective in the next few years? And then on the guidance side, Ethan, the building blocks -- and sorry to hold you to the exact number, I think the midpoint I'm calculating is around 23% based on the numbers on the slide. So I think the 20% is maybe if you imply that minus 6% at the high end of the pricing tiers? Maybe you could just walk us through the dynamics with the guidance there and the time period we can -- or the framework, sorry, and how long we should consider that valid for?

Thom, do you want to take the first couple?

Yes. Specifically on capital and the loan sizes. This is -- for us, it is a pure risk appetite process. If we start with the product, we want to ensure that the product is good. And therefore, if you look at loans, the loan sizes that we offer to our customers basically increase over time if you feel more confident that we can grow these loan sizes. Of course, higher loan size will also result in more capital volume. It's not an objective per se. There's not -- the reasoning behind increasing the loan sizes that is because there is clear customer demand, and we follow the demand of our customers. I think if you specifically look at the volumes, specifically, what Ethan said before, capital or let's start with issuing, issuing is a bit further ahead in its growth trajectory. Over time, we expect that capital and banking will also follow similar parts, but these products are in a more nascent compared to issuing.

And then let me talk to the guidance piece. I think I'd like to take this a bit more holistically, right? So I think if we think about our ambition, we think very long term, that's how we make decisions for the business, right? And we think long term because the opportunity should be sustained over a long period of time. We want to be in business with our customers in 10 years, not just in the next 6 months. And so our decision-making framework is very much long-term oriented. That's why, hopefully, also sharing a bit on the addressable market that we're going after and expanding that into other products, helps to explain that kind of long-term opportunity that we're truly going after that we're trying to build together with our customers. Then we said, okay, what's the right way to give formal guidance to the market. And we felt it was most helpful to give the visibility transparently as we get it. So around this time each year, we go through a process where we understand the road maps, the priorities of our customers. They're usually building out their priorities now, right, for next year. We understand how we can grow alongside them, right, which markets they want to grow into, maybe how they're thinking about shifting payments volumes, maybe adding another sales channel on their mind or another product. And that's the type of visibility that we then have for that 6- to 12-month time frame. And that's why we want to get into this model of sharing each February what our view is of for the next year. This year, we're already kind of in that model because we set a 3-year time horizon 2 years ago. So we're getting up against that model. We'll further refine that in February. But we also wanted to give today a bit of a view on what we should also expect over multiple years, and that's why we try to create this framework, right, framework, both of what will drive our growth, so what are the actual levers themselves, give an update on that from 2 years ago add in financial products and then relatively size them. But the idea is not to come back to these levers every year and say how they've shifted. We want to do that through our annual view of guidance and then give people context of what we're seeing in the market because we're very confident about the opportunity beyond that. That's ultimately why we've set up our guidance now going forward in this way. That's on the revenue side, of course, and we can get into others if there are questions.

I think we have another question right up here.

[ Omar Mirza ] from [indiscernible] Capital. So in the case of enterprise merchants, we typically choose multiple payment providers. Do we -- and where we end up not being the primary audience, not the primary payment provider, can you typically say why they choose another provider to be the primary provider and what holds us back from becoming primary providers for the enterprise merchants?

Can I give this one to Gary?

Yes. I mean, ultimately, most of the merchants we work with care about some combination of like revenue, costs and fraud, right? [indiscernible] of between multiple of them. There could be other reasons why they have external factors that help the decision-making. They could be locked into a long-term contract for some reason, that takes time to expire. It could be that they have geographies that they want specific capabilities like we don't do, for example, point of sale in Vietnam, for example, right, so they could use a different processes there. So it depends on the means a little bit. But ultimately, that's what we're trying to do is make sure we understand what their needs are and help them optimize against that to ensure [indiscernible].

We've got one with Adam over here.

Adam Wood from Morgan Stanley and also appreciate the presentation today. I've got 2, please. Just first of all, you've announced a lot of innovation today. We've talked about agenetic commerce. We've also seen in the market that some of the legacy players in the payment space, in particular, has to revise guidance, they're raising money to sell their platforms out. Do you see -- and you've done an amazing job taking share over the last decade, but is there a tipping point where just competing on price, doing a good enough job on legacy platforms isn't enough? And we see a much more accelerated pace of shift in the market because what you've outlined today starts to matter more and more and they just can't deliver that service to their merchants. And then maybe secondly, when we talk about the embedded financial products I think particular about the bank accounts and the lending side. Could you just talk a little bit about the distribution about how you train the sales people? Is it the platforms that are doing that selling into the end merchants and persuading them? How much can you help them? Because that feels like it's going to be quite a different sale to payments where you've obviously built up this incredible reputation and franchise?

Thanks, Adam. Ingo, would you like to take the first question?

Sure. Help me.

It's about the legacy players.

Yes, the legacy players. Sorry. The -- I think if you look at what we have done over the last decade is making sure that we build the right [indiscernible] for our merchants. And of course, legacy players have more difficulty in catching up with us. I think what we talked about today with dynamic identification, we bring basically a new foundational layer where it's super hard to compete with us if you're a legacy player. I think that's also why we're very confident that we can continue to grow over the next years. That's also why we try to be helpful in setting up how we think that growth pattern will look like. And I think it will be hard for those legacy players, if you think about the market share that they still have with our ambition to become one of the largest players in this field. And it's certainly the volume that we need to win from them to be successful. I think that's how I would look at it.

And then Gary, on the [indiscernible] and helping our sales and account managers set up to sell? How they do that?

So the way we work about a lot of our platforms, even if you put aside [indiscernible] payments, some of them are taking this journey into [indiscernible] for the first time. So they may have a sales force that [indiscernible] that works on a monthly subscription basis, but all of a sudden, there is brand new revenue stream, adds complexity. So certainly our hope with our platform, what we're working towards is, a, we simplify it as much as possible for them to actually even add this capability; but b, we have a whole host of education materials that we work with them, to train them and their sales team on how do you actually sell payments? We have whole like microsites and everything else set up around this because it's not an easy lift. You're often dealing with the like Series D start-up that's like what is interchange. So that's what we do on the payment side. And on embedded finance is the exact same thing, right? We need to [indiscernible] them, such if they can then quickly go to market and even tell them, look, use some pitfalls we've seen with other customers that you should look out for as you start thinking about capital, as you start thinking about issuing, here's use cases, give them what we know about your business, about where you may want to go to market. And that's how we see acceleration of this momentum.

We've got Hannes here with the question. I'm not ignoring you in the back, I'll get to you. I'm sorry.

Hannes Leitner from Jefferies. Maybe we can talk a little bit about the verticals. Like for example, in your time analysis, you only cut out sanctioned in China. But when we think about, for example, grocery chains, that has been one of the customers, which have been rather more outpriced. When we think about the incremental cost of the Adyen platform, it should inferior coming down. When do you expect those customers being eligible or addressable? And then maybe at a similar pace, I think a couple of years ago, there was a conscious decision to not focus on the global expansion of all products. You just mentioned in-store experience in Vietnam. How should we think about pushing further into new markets in new countries? And including that the local payment methods, I guess, booking on agentic commerce, a trip to Thailand using the local card or the local hotel and settle, it will be even more important to have a global network.

Ethan, do you want to take the first one on the TAM?

Yes. So let's take grocery as an example, the one that you shared. We have examples of grocery chains who work with us today. They work with us today because they saw the strategic importance of payments. So while that's not the vast majority of grocers, it's true, they're mostly focused on cost. There are ones who are starting to set their industry in a certain direction, which has customer experience really matters. And you've seen that unified commerce has mattered a lot more coming out of COVID, right, delivery, order and advance pickup in store. There's a lot of versions of the buying experience, which look different than they did 5 or 10 years ago. And so for us, it's a question of like where do we focus on now? Where are the areas of focus today? And how do we then advance over time. But I think if you, again, look back at the last decade, what you've seen is that markets and verticals that we would have never thought were in scope have come in scope, right? I mean, let's take the U.S., which is a very significant part of our business now. We started in the U.S. to help U.S. companies go broad. Now we have a very strong U.S. offering. Our U.S. debit offering is world class, right? And so I think over time, what we've seen is that the TAM has trended in the direction where a better experience in payments is what you optimize for. And I would expect that more and more verticals are going down that path over time. That's why we've included the width of verticals.

Great. And then Ingo, do you want to take the second part?

Yes, sure. So if you think about sizable marketing, of course, there are parts of that market that we currently can't [indiscernible] in Vietnam is a good example. But if you look on the short term, like what we currently already can address, countries like Japan and India, there is a lot of room to grow. And I think that's where the opportunity lies on the short term. On the longer term, we always apply the same logic as we have done in building the company, making sure that we basically follow the need of our merchants. So when it becomes relevant to have, for instance, a better point of sale offering in Vietnam, we will implement it. But it's like building a company is always about priorities. I think if you look at we're currently investing with a lot of focus ranges on the U.S. and Japan and India, the addressable market is not our challenge.

We have a question back there from Jim in the last row.

It's Jamie from Susquehanna. Two questions. I know it's early, but do you have any observations about the potential pricing on agentic? For example, is there a separate interchange for agentic? And then the second one is just more philosophical for Ethan. You've authored a lot of changes in the IRO practice over the years. I'll give some examples, but he went from semiannual to quarterly, thank you for that. You now have segment-level disclosures. So I'm just wondering, how do you balance the IRO message in the context of a company that is very deliberate that you want to build for the long term?

[indiscernible] do you want to take the first one?

Yes, I will take the first one. Yes, I think it's still early, right? I mean I think at this point in time, as an industry we're working through what is the technological solution here and how to actually create this new channel, you have to make sure it works across every [indiscernible] constituents. And there's kind of 2 things in the financial model to work through. Like will there be a separate interchange table. Probably. Are we sure what that is yet? No. But that's also just for cards, right? And then the second thing is how are AI Agents and companies going to monetize this, right? And so you can imagine that there will be something there as well. But I think it's early. Those types of discussions, frankly, haven't really been had too much just yet. It's about just getting the technology experimenting, seeing how it's going to work, see what the real value is. And then as an industry, it will be priced according to that.

On the second question, that's a really good question. Because I think mentally as a company, we haven't shifted our focus at all, right? We're very focused on long-term results. We're very focused on making decisions, which benefit our customers over many years even if that's maybe a longer-term solution, right, like what we built out with EFP, building it ourselves, building it on our own license. That's what the long term in mind. So organizationally, we're very much focused on the long term. That hasn't shifted. I think you're fair in saying you've seen our reporting change over time. We've always had the goal of being transparent and helping where we can best give a view on how to understand our business. 2 years ago, that was indeed adding a quarterly reporting. We tried to add more disclosure as it was relevant, also matching our own organization, right? So also as we grew our organization into pillars. We also wanted to share that externally. That was the way we were viewing ourselves as well. And so it's trying to match our kind of like internal view with still connecting to the long term, right? So they have spent quite a bit of time on the TAM. I did that not because necessarily it's always the limiting -- it's not a limiting factor, that's clear, but even more so, to try to voice the long-term opportunity that we're facing. It's not an opportunity which plays itself out in a year or 2. It's an opportunity that can play itself out over the next decade if we're truly successful in it. And I think that type of mentality is what I also wanted to share today, but also how we think about building the business.

There's another question back there.

Craig Maurer from FT Partners. Two questions. One, specifically, I was hoping you could address your relationship with Shopify. They are growing extremely fast in Europe, seems likely to continue as merchants want to improve on legacy platforms. And there's obviously internal competition there. They've had a long-term relationship with Stripe. They brought in Braintree to cover spots that they might -- that Stripe might not cover and obviously have partnered with you guys. And so how do you view sort of internal competition within Shopify when they're taking over a merchant admin? And second, in the U.S., to be more specific, there are clearly some wounded animals and very likely, you're going to see those merchants that are giving significant volumes to those processors look to RFP at some point? And how are you viewing the opportunities there? How aggressive are you willing to get on price because obviously, they're going to protect their turf as hard as they can from a position of weakness.

Gary, can I give you a Shopify question? And then Trevor as a rep from the U.S., do you want to take that one?

Yes, for Shopify, I mean, we don't comment on any one specific partner, but we do work with quite a number of partners, including Shopify, Salesforce, Oracle, Microsoft [indiscernible] and a number of others. And our goal is to make sure we just support a healthy ecosystem and follow merchant demand in terms of which partners they want to work with. And how do we make sure it's a really great integration so that our customers have a great experience.

Yes. And to your second question, I mean there's no doubt, right, if competitors stumble there's always opportunity. We're in contact with a lot of customers who are using potentially -- or potential customers who are using other providers, and we're constantly chat with them about the value we bring, the opportunity that we can provide to them, the stability and be the future looking at the end of the day. And so yes, I love your statement. I think we would agree like this is an opportunity. We'll continue to push on that and be hopefully the PSP, the provider that they'll look to and the turn to you to ensure that we're there for the next 10 years, the next 20 years for them. But yes, we'll see how that plays out.

Maybe if I can just add on price because I think that was the second part of your question. I think we'll continue to stay disciplined on price because we're winning from the legacy providers consistently over time. That's how we've gained share, right? That's where the vast majority of payments volume is over time. And we can do that by selling value. So we'll continue to sell value. And we expect that we'll continue to gain share from the legacy providers by doing that. So there's -- we'll stay disciplined still on price, no matter what happens around us. We'll stay focused on selling value and bringing the best to our customers.

Issac, do you want to hand it to him?

Fahed from Rothschild & Co. I had a few questions. So your customer cohort chart was fantastic and the increases are fantastic as well. Can I get a sense of how your customer split is in those year buckets? And obviously, a lot of that information is based on digital, which is the bulk of your business, does that change when you look at Unified Commerce and platform where how the growth is coming from and you see how those cohorts mature? My second question is on capital. So obviously growing your margins and you're growing well. You're generating a lot of cash. Should we think some of that cash is going to go to funding the capital business? Will it be on your own balance sheet? Or will you have arrangements to take a lot of those loans off balance sheet given the growth you're expecting capital? And my third question was the relation with the card networks. Currently, you really scale up on the card networks. If I think about your preventative fraud solutions, MasterCard support business [indiscernible], which is something similar. If I think about tokenization, MasterCard [indiscernible] tokenizing all of e-commerce by 2030. Is your relationship with the card network changing from kind of partnership to more competition, particularly on the fraud solutions and tokenizations? Or am I misunderstanding how your product fits in with the card network products?

Ethan, do you want to take the first 2 and then Trevor, I think you can take the third one.

Yes. Just so I understand. So the first question, was it about the 20-30-40? Or was it about the new -- okay. Yes. So of course, the oldest set of cohorts, that was all digital. We had no unified commerce or platform offering back then. Now of course, I'm sure there are some customers who added -- who started with us digitally and moved to unified commerce once we had that solution. But the original sell back then was all digital. That was the original offering. Over time, of course, the proportion has grown more towards Unified Commerce and towards platforms. If you get to earlier and earlier cohorts, but yes, that's also how it's developed. I think your question was, indeed, how have you seen share wallet ramp? Yes. So I think we see pretty similar trends in general. The thing that is maybe a bit different is that on platforms, we also grow through the fact that our platforms are selling their products into their customer base, right? So it's not only gaining share of wallet and what's existing for them today and their own organic growth of that existing business, but also that they are often selling payments into their customer base as well. So maybe they're at 20% attachment rates or 30% attachment rate, and they're trying to drive that much higher. And as they expand, we also get that expansion as well. So you see share of wallet like the total pool of platform customers be impacted by their own growth, but also the growth of payments within their business. And I think that's only other thing I'd [indiscernible]. And your second question? Remind me of the second question?

Capital funding.

Capital funding, yes. So given our own licensing structure, we have full flexibility to do it on our own balance sheet, and that's what we're doing today. We feel like that gives us the best and deepest understanding of the full end-to-end process, right, doing everything ourselves. As that scales, there may -- it may make sense financially to involve partners in that model, but we'll see how that scales and how that grows, and I'll update you all accordingly.

And then on the card network question, the short answer is, no, we are not competing with them. But we have a deep partnership with them in every other card networks thats out there. Now reality is we have the same incentives. Like ultimately, we want to let every transaction go through, that's good, and we want to block every fraud that's actually bad. And so yes, jointly, we have different products, and we have for years, frankly, right? Like they [indiscernible] an example and we actually are one of the key providers in the industry for 3D secure, right? So many of the products that they create will actually consume and leverage them within their own adding Uplift or other products themselves, but we work hand in hand on these things. And [indiscernible] partners definitely not competitors.

Got one from Adam over here.

Adam Frisch, Evercore ISI. Thanks again for putting together a great program. On the M&A side, Ethan, just to a follow-up on the first question, I understand you don't want to, I guess, contaminate is the kind of word I'm looking for. I don't know if it's the exact word. The single platform with acquisitions, but would you be more open for assets that are more tangential to the core? This is -- might not be a great example, but something like stablecoin infrastructure or something, which is not anything that we conflict with what you do today. So if you could just talk about like tangential assets if you're more open to stuff like that today as you become more complex, the markets expand? And then my second question is on the growth framework, really clear disclosures here today. I think it was great, probably alleviate intention in the debate on the stock. But if you could provide some insight into your collective mindset about asset allocation for growing existing versus growing new? And why you think the new cohorts are accelerating faster than have historically?

Do you want to take both of those? I also can tap Thom, on the M&A if you feel [indiscernible]. Want to take them both? Go ahead.

Yes. So I think where did our philosophy come from, right? Our philosophy came from to run a payments business the best outcomes come from having end-to-end control, right? That was how we started. A lot of our competitors, they either got channels. They solve for channels, right, in-store or online through M&A or they solve through global through M&A, and that just led to a worse customer experience in our view. So we said we focus on that. We build that global end-to-end single platform that we discussed today. We build that ourselves. Now we've layered on banking, licenses and technology onto it. The fact that these products were embedded together, you heard it from Jason today, I thought that was a great takeaway that the fact that these products can be embedded is so powerful. So the fact that they're connected to one another is of a lot of value, which is also why we took the approach, get your own licenses, build it yourself. I think in that setup, it makes a lot of sense to have end-to-end control. That's where we're widening our product offering, of course, it makes sense to look at other things. Now this is not fundamentally a change of philosophy at all. This is how we've always thought about things. For instance, when we started with issuing, we thought, is this something we should build? Should we build this end-to-end ourselves? Or should we do something different? We said best outcome will come from buildings. So it's not that this is new for us. This is just a continuation of our strategy and there's a very high bar because we think what we can build is going to be a very high quality for our customers over time. And that's how we continue to think about it. Second question was around asset allocation for new versus existing. That's in essence the team, right, how we're building the team. So I think the best way to think about it is that account management grows is the biggest part of our commercial organization, and it grows pretty in line with the number of customers we bring on to the platform because one of the really important factors and why customers want to work with us and why they want to bring more share of wallet is the experience they get working with our teams. And account management team is a really crucial function in delivering that level of service to them. And so we grow that team pretty much in line with how customers grow. Of course, we're looking for efficiencies. We're trying to make their work more scalable. We talked about investments we're making in tooling and other areas to support that. But that's the team that relatively in line grows with the growth of our customer base. And in sales, we made bigger investments in 2022 and 2023. But again, this is a much smaller part of the overall commercial function given that they cycle through accounts, right? They work on deals and they close deals, they pass off to account management. They work on the next deals. But we've been still making investments in that team over the last years. So I would say, if you think about it in total, we make bigger investments in the account management team because that team is just a more sizable team. We're adding more accounts on a continuous basis and the sales team that's growing in a more deliberate way. We make strategic investments and the sales team becomes more effective, the longer that they're with Adyen basically through 4 years we see on average.

And maybe one thing I would add, [indiscernible]. I think this kind of picks up on the previous question, slightly, too, of as we're selling different kinds of products, right? Like what does that mean for our team. The piece that I would add is that, when we started our payments business, right, we had a foundation of really strong payments knowledge, and we could hire talents of different types of backgrounds and we could teach payments our own way and really get people up to speed. And I think we also continue to make investments today in our financial products teams, right, making sure that we -- it's not huge numbers but bring on like really strong capability in certain areas and complement the existing team. So the team that is building and selling financial products is still in progress. I think we have really been building a great team. We saw some of them today, but we'll also continue to make those additions to the team where it makes sense.

. I think we might only have time for one more. We'll see how fast we get through it. [indiscernible], where are you?

[indiscernible] Capital Partners. So you previously mentioned that even though EFP adoption is still early days, many platforms have been choosing Adyen to future-proof themselves. And so with Agentic Commerce today, even earlier days than EFP, the question is, do you think that the increased focus on Agentic will help increasingly shift or accelerate volumes from incumbents to Adyen to similarly future-proof themselves before it becomes mainstream?

It's a great question. Trevor?

Sure. Yes. I mean we hear the #1 thing that merchants are asking about right now is Agentic Commerce. And so hence, that's why we're putting dedicated resources to it, and hence that's why we talked about it today because we do see this as a new channel in the industry going forward. We absolutely do believe we're going to invest in it. We do believe it's going to have the opportunity to drive not only perhaps share of wallet, more stickiness with existing merchants, but also attract other new merchants who want to be [indiscernible]. They want to work with a fintech company that's going to help get them this new channel and to really future-proof what they're going after in the future. So yes, we actually expect that as well.

I would just add because Trevor is completely right. At the same time, it's so early days, right? There's so much still to be figured out. It's not that there's this huge amount of volume that's running through Agentic Commerce today, right? So this is an important discussion point with our customers but it's not a sole problem yet. And so there's going to be a lot of discovery. It will take time for iteration cycles of what really works and what doesn't play out. So it's also not something that you should expect means major changes in the short term.

Now you're asking a question to commercial guys [indiscernible] before this really generates significant volume, right? Let's be clear. This is a long journey that we're [indiscernible].

Let's do one more. [indiscernible]

Harshita Rawat with Bernstein. So 2 questions. One, I want to follow up on the new layer on your foundation, the dynamic identification. I guess, at EUR 1.3 trillion of scale, you do have a lot of data to kind of power that. But maybe talk about what differentiates Adyen here compared to other modern peers and networks who are also developing similar capabilities? And then second, it's very rare these days to have a payments presentation and not talk about stablecoin. So I thought I'd use that as an opportunity. Clearly, you are very customer focused and you're kind of following what your customers are telling you, there's a lot of hype, et cetera, right now in the market, what are you hearing from your customers here? And kind of especially as you kind of go and look at crypto-native companies, there's a lot of volumes there? Like do you need those capabilities to go out kind of those crypto native verticals?

Thanks, Harshita. Carlo, do you want to take the first part of that question? And then Ingo, you want take the second part?

I see 3 major advantages we have. The first one is this focus on enterprise customers, all those years. That's a good foundation when it comes to the data set. Second, in-person payments spread all over the world. You can imagine the touch points we have with good cardholders. Now that helps provide the foundation to [indiscernible] dynamic identification. And third, it all clicks together the single platform, the way this data model is set up, the way we've built our infrastructure in-house, the way these models are now passing along [indiscernible] presentation, the information upstream, downstream, those are capabilities we feel differs [indiscernible].

Yes. On stablecoins, of course, we track closely what's happening in this world. Of course, if you think about our main way of working with merchants is in the main markets that we currently operate Europe, U.K., U.S. is where we have banking licenses, and we can already move money around the world very easily. So we don't need stable coin to do that. Of course, if you think about the future, maybe markets where we're less active or if we want to send money around through [indiscernible] sell through correspondent banks, you potentially could think of, okay, we do that through stablecoin. But that's certainly something that we're currently not doing. It's something that we track and that might change in the near future, but it's not a current high demand from our customers. And as a payment method, it's still very far away. So I think that's the way to look at it. It's super interesting to follow. But if you think also about priorities of the company, the things that we can do right now, there are so many other things that are real needs of merchants that have a higher priority that we focus on, that we currently focus on stablecoin.

Great. Thank you. I think that's all the time we have. I want to thank you again for joining us here today. All of you in person who made the trip to come out here in Amsterdam. We really appreciate it. Everyone who's watching online. Thank you so much. And for those of you in the room, we're going to be heading back to you [indiscernible] right now for some cocktails and a product demo. Thank you again.