WEBVTT 00:00:00.466 --> 00:00:01.766 (Music playing) 00:00:12.266 --> 00:00:14.400 >> AAKASH SAHNEY: Good afternoon, everyone. 00:00:14.466 --> 00:00:17.433 My name is Aakash, and I lead Product for Stripe Connect. 00:00:17.500 --> 00:00:20.333 Welcome to the Platform Payments breakout session. 00:00:20.399 --> 00:00:25.433 For more than 11 years, Stripe has built and refined a solution 00:00:25.500 --> 00:00:28.300 called Stripe Connect to help our customers embed 00:00:28.366 --> 00:00:30.266 and monetize payments. 00:00:30.333 --> 00:00:32.899 Stripe Connect is used by the world's largest and most 00:00:32.966 --> 00:00:36.033 popular software platforms and marketplaces and, as we'll 00:00:36.100 --> 00:00:39.600 see during this talk, many more novel business models. 00:00:39.666 --> 00:00:43.233 Stripe Connect now powers over 12,000 platforms and 00:00:43.299 --> 00:00:45.466 the 7 million businesses and individuals that 00:00:45.533 --> 00:00:47.533 those platforms serve. 00:00:47.600 --> 00:00:49.600 Today, we're going to share what we've learned from supporting 00:00:49.666 --> 00:00:50.700 all of these businesses. 00:00:50.766 --> 00:00:53.433 So whether you've been embedding payments into your products for 00:00:53.500 --> 00:00:55.899 years or you're just getting started, we think you'll 00:00:55.966 --> 00:00:57.866 learn something new today. 00:00:57.933 --> 00:01:00.466 So here's what we're going to cover. 00:01:00.533 --> 00:01:02.466 First, we're going to go back to basics and talk 00:01:02.533 --> 00:01:05.299 about what it takes to get platform payments right. 00:01:05.366 --> 00:01:07.966 With the growing popularity of embedded payments, this 00:01:08.033 --> 00:01:09.200 is more important than ever. 00:01:09.266 --> 00:01:12.700 You'll hear from Jobber, one of our fastest and most  and 00:01:12.766 --> 00:01:16.166 fastest growing and most successful platforms about what 00:01:16.233 --> 00:01:19.866 it takes to build a great platform payments business. 00:01:19.933 --> 00:01:22.599 Second, we're going to think outside the box and show you 00:01:22.666 --> 00:01:25.099 that the opportunity to incorporate payments into your 00:01:25.166 --> 00:01:27.500 products is everywhere, and it might not be in the 00:01:27.566 --> 00:01:29.200 ways that you would think. 00:01:29.266 --> 00:01:32.133 We'll examine really innovative platform, marketplace, and 00:01:32.200 --> 00:01:35.000 franchise use cases and hear how Microsoft is thinking 00:01:35.066 --> 00:01:37.666 about this opportunity. 00:01:37.733 --> 00:01:40.966 Finally, we've heard from so many of you that these 00:01:41.033 --> 00:01:43.000 days you feel stretched. 00:01:43.066 --> 00:01:46.599 Customer expectations are rising, but macroeconomic 00:01:46.666 --> 00:01:49.099 conditions make it hard to do it all yourself. 00:01:49.166 --> 00:01:51.466 So we'll share some common pitfalls that we've observed and 00:01:51.533 --> 00:01:54.799 discuss how Stripe's roadmap can help you do more with less. 00:01:54.866 --> 00:01:57.333 So let's get started with getting platform payments right. 00:01:57.400 --> 00:01:59.833 As you heard in the keynote this morning, the software platform 00:01:59.900 --> 00:02:01.866 business model has grown incredibly quickly over 00:02:01.933 --> 00:02:04.166 the past several years. 00:02:04.233 --> 00:02:06.933 Take these three public market companies. 00:02:07.000 --> 00:02:10.933 In 2022, they earned 51% of their total revenue from their 00:02:11.000 --> 00:02:13.966 integrated payments products. 00:02:14.033 --> 00:02:17.266 What's more is that 75% of businesses say that they're 00:02:17.333 --> 00:02:19.866 likely to embed payments or financial services into 00:02:19.933 --> 00:02:21.466 their products in 2023. 00:02:21.533 --> 00:02:24.400 And this number is not just for SaaS platforms or marketplaces. 00:02:24.466 --> 00:02:26.900 The audience for this survey was all businesses, regardless of 00:02:26.966 --> 00:02:30.400 their current business model or their industry. 00:02:30.466 --> 00:02:32.733 So these numbers tell us that there's a big opportunity to 00:02:32.800 --> 00:02:35.766 integrate payments into your products, but, like, 00:02:35.833 --> 00:02:36.633 what's the root cause? 00:02:36.699 --> 00:02:39.266 Like where is this trend actually coming from? 00:02:39.333 --> 00:02:41.666 Fundamentally, it's coming from the needs of your 00:02:41.733 --> 00:02:43.199 users, from your customers. 00:02:43.266 --> 00:02:47.000 As a general rule, they want to consolidate vendors and simplify 00:02:47.066 --> 00:02:50.033 their daytoday operations so that they can focus on their 00:02:50.099 --> 00:02:52.566 customers and their products. 00:02:52.633 --> 00:02:54.599 For example, consider a gym. 00:02:54.666 --> 00:02:57.099 Rather than operating their website from one service, 00:02:57.166 --> 00:02:59.933 managing online signups through another service, and taking 00:03:00.000 --> 00:03:02.666 in-person payments through their local bank, they can now use 00:03:02.733 --> 00:03:05.699 Mindbody, a single platform that's purpose built to help 00:03:05.766 --> 00:03:09.000 gyms run efficiently across the board. 00:03:09.066 --> 00:03:11.500 And this same trend of one-stop shop software 00:03:11.566 --> 00:03:14.066 platforms is happening for every kind of business. 00:03:14.133 --> 00:03:16.466 Plumbers and painters using Jobber, nonprofits 00:03:16.533 --> 00:03:20.466 using Blackbaud, and restaurants using Lightspeed. 00:03:20.533 --> 00:03:24.933 And in 2023 specifically, 70% of businesses say that they plan to 00:03:25.000 --> 00:03:28.566 consolidate the number of software products that they use. 00:03:28.633 --> 00:03:31.566 This means that for software platforms, integrating payments 00:03:31.633 --> 00:03:35.766 is an essential step in becoming a one-stop shop. 00:03:35.833 --> 00:03:38.633 But as many of you in the room know, this takes some work. 00:03:38.699 --> 00:03:40.566 It's not as simple as just turning on credit 00:03:40.633 --> 00:03:43.066 card payments and watching the revenue flow in. 00:03:43.133 --> 00:03:44.833 So let's show you the common journey that software 00:03:44.900 --> 00:03:47.666 platforms take as we've seen it, and we call these different 00:03:47.733 --> 00:03:50.433 stages SaaS 1.0, 2.0, and 3.0. 00:03:52.666 --> 00:03:56.099 First, SaaS platforms tend to monetize at the beginning 00:03:56.166 --> 00:03:58.199 via subscription revenue, like a monthly fee that 00:03:58.266 --> 00:03:59.300 they charge their customers. 00:03:59.366 --> 00:04:01.666 We call this SaaS 1.0. 00:04:01.733 --> 00:04:03.233 Then they evolve to SaaS 2.0. 00:04:03.300 --> 00:04:05.699 They integrate online payments into their products, and they 00:04:05.766 --> 00:04:07.866 start monetizing that as well. 00:04:07.933 --> 00:04:09.833 They also add in-person terminals for customers to 00:04:09.900 --> 00:04:14.166 accept payments face-to-face and add additional payment methods. 00:04:14.233 --> 00:04:15.733 Then they evolve to SaaS 3.0. 00:04:15.800 --> 00:04:18.300 Once their payments business is successful and growing, they 00:04:18.366 --> 00:04:21.000 expand to offer their customers access to more financial 00:04:21.066 --> 00:04:25.033 services like instant payouts, loan offers, and card programs. 00:04:27.366 --> 00:04:29.699 Now, while there's a lot of enthusiasm for embedded 00:04:29.766 --> 00:04:32.766 payments, you know, 75% of businesses looking to integrate 00:04:32.833 --> 00:04:35.466 payments in some way, we've seen the platforms very often get 00:04:35.533 --> 00:04:38.966 stuck on the transition from 1.0 to 2.0, sort of building 00:04:39.033 --> 00:04:41.666 and growing their payments business in the first place. 00:04:41.733 --> 00:04:43.666 So today we're going to learn from Jobber's experience. 00:04:43.733 --> 00:04:45.266 Jobber is one of the fastest-growing and most 00:04:45.333 --> 00:04:49.233 successful platforms that's been on this entire journey, and 00:04:49.300 --> 00:04:51.166 we're going to hear what they did right, what they 00:04:51.233 --> 00:04:53.300 wish they did differently in growing their really 00:04:53.366 --> 00:04:54.466 successful payments business. 00:04:54.533 --> 00:04:57.399 So to talk about this in detail, I'd like to welcome Kate Jensen, 00:04:57.466 --> 00:04:59.899 Stripe's head of platform sales, and Jeff Sherlock, the 00:04:59.966 --> 00:05:01.199 SVP of Product at Jobber. 00:05:01.266 --> 00:05:02.266 Kate and Jeff. 00:05:02.333 --> 00:05:03.433 (Applause & Cheers) 00:05:08.466 --> 00:05:09.566 >> KATE JENSEN: Thank you, Aakash. 00:05:09.633 --> 00:05:12.199 >> JEFF SHERLOCK: Oh, wow. 00:05:12.266 --> 00:05:14.133 >> KATE JENSEN: Hi, everyone, I'm Kate. 00:05:14.199 --> 00:05:17.066 I've been at Stripe for over six years now, and I work with so 00:05:17.133 --> 00:05:19.199 many of our software platforms. 00:05:19.266 --> 00:05:22.800 I'm thrilled to be here with Jeff from Jobber today. 00:05:22.866 --> 00:05:25.166 As Aakash mentioned, Jobber is one of our 00:05:25.233 --> 00:05:28.000 fastest growing and most innovative software platforms. 00:05:28.066 --> 00:05:30.433 Jeff, thank you so much for being here. 00:05:30.500 --> 00:05:32.033 Can you introduce yourself and tell us a little 00:05:32.100 --> 00:05:33.500 more about what you do. 00:05:33.566 --> 00:05:36.666 >> JEFF SHERLOCK: Sure, hi, everyone; I'm Jeff Sherlock. 00:05:36.733 --> 00:05:39.866 I'm SVP of product at Jobber, and I oversee our product 00:05:39.933 --> 00:05:43.333 management and product design functions, including 00:05:43.399 --> 00:05:45.199 our fintech product org. 00:05:45.266 --> 00:05:48.800 So deeply involved in the fintech and payment space. 00:05:48.866 --> 00:05:50.433 >> KATE JENSEN: And can you tell us a little bit more 00:05:50.500 --> 00:05:51.766 about what Jobber does. 00:05:51.833 --> 00:05:52.833 >> JEFF SHERLOCK: Sure, happy to. 00:05:52.899 --> 00:05:57.699 So Jobber is an operational workflow management software 00:05:57.766 --> 00:06:00.399 for small home service businesses that allows them 00:06:00.466 --> 00:06:04.866 to easily quote, schedule, invoice, and collect payment 00:06:04.933 --> 00:06:06.233 from their customers. 00:06:06.300 --> 00:06:08.899 So think plumbers, painters, HVAC. 00:06:08.966 --> 00:06:15.399 And we today service over  we serve over 200,000 service pros 00:06:15.466 --> 00:06:20.600 across 60 countries, and we have -- you know, over $40 billion 00:06:20.666 --> 00:06:23.199 have been invoiced on Jobber. 00:06:23.266 --> 00:06:27.666 So we've grown a lot over the years, and I think we have a 00:06:27.733 --> 00:06:29.133 pretty cool piece of software. 00:06:29.199 --> 00:06:30.433 >> KATE JENSEN: It's pretty incredible the scale 00:06:30.500 --> 00:06:31.533 that you're operating at. 00:06:31.600 --> 00:06:32.666 >> JEFF SHERLOCK: Yeah, yeah. 00:06:32.733 --> 00:06:34.000 >> KATE JENSEN: And I know you've told me before some of 00:06:34.066 --> 00:06:36.233 the stories about how you really got started, some of 00:06:36.300 --> 00:06:37.733 the people you're building for. 00:06:37.800 --> 00:06:39.833 To bring it home to the audience, can you tell us a 00:06:39.899 --> 00:06:43.233 little bit about one of your most canonical users? 00:06:43.300 --> 00:06:48.800 >> JEFF SHERLOCK: Sure, so the way that we got started was up 00:06:48.866 --> 00:06:52.399 in Edmonton, Canada, our founders, Sam and Forrest, 00:06:52.466 --> 00:06:55.966 were working with Graham of Painters Enterprise. 00:06:56.033 --> 00:07:00.066 And Graham ran a three person painting business and 00:07:00.133 --> 00:07:05.000 had a lot of, frankly, complexity managing all of the 00:07:05.066 --> 00:07:09.100 pen and paper invoices, the schedules, collecting payments. 00:07:09.166 --> 00:07:11.199 The whole thing was just really complicated. 00:07:11.266 --> 00:07:14.500 And reached out to Sam and Forrest and local software 00:07:14.566 --> 00:07:19.666 developers, and they began to work with Graham to simplify 00:07:19.733 --> 00:07:23.300 and streamline the way his business was run. 00:07:23.366 --> 00:07:27.500 And through that process, the aha moment for Sam and Forrest 00:07:27.566 --> 00:07:33.766 was realizing that the same problems that Graham faced were 00:07:33.833 --> 00:07:37.000 very common across lots of other types of businesses. 00:07:37.066 --> 00:07:41.199 So while they were building it for Graham, they realized that, 00:07:41.266 --> 00:07:46.600 you know, a lot of plumbers, a lot of landscapers had very, 00:07:46.666 --> 00:07:48.199 very similar problems. 00:07:48.266 --> 00:07:51.833 And so that's when they began to really invest in making 00:07:51.899 --> 00:07:54.866 this a sort of common platform to build off of. 00:07:54.933 --> 00:07:56.333 >> KATE JENSEN: I love that. 00:07:56.399 --> 00:07:58.600 I'm sure that story really resonated with a lot of you 00:07:58.666 --> 00:07:59.833 here in the audience. 00:07:59.899 --> 00:08:02.300 I think one of the things I love most about our work here at 00:08:02.366 --> 00:08:05.233 Stripe is learning stories like that, learning 00:08:05.300 --> 00:08:06.333 who you're building for  00:08:06.399 --> 00:08:07.266 >> JEFF SHERLOCK: Yeah. 00:08:07.333 --> 00:08:08.300 >> KATE JENSEN: and what you're really building. 00:08:08.366 --> 00:08:12.066 Tell us about how you thought about payment specifically. 00:08:12.133 --> 00:08:13.866 We are at a Stripe event. 00:08:13.933 --> 00:08:17.566 How did you think about and when did you think about building 00:08:17.633 --> 00:08:18.899 payments into your product? 00:08:18.966 --> 00:08:21.600 >> JEFF SHERLOCK: Great question, so the story with 00:08:21.666 --> 00:08:24.333 Graham, I mean, that was, you know, 10, 12 years ago. 00:08:24.399 --> 00:08:28.133 So we're sort of transporting a little bit back in time. 00:08:28.199 --> 00:08:32.333 But when you think about payments specifically, 00:08:32.399 --> 00:08:37.133 collecting payments was and still is one of the most 00:08:37.200 --> 00:08:41.533 frictionful and, frankly, cumbersome parts of running a 00:08:41.600 --> 00:08:43.399 small home service business. 00:08:43.466 --> 00:08:47.566 We hear stories all the time about service pros having to, 00:08:47.633 --> 00:08:52.133 you know, pick up a soggy check that was left underneath a wet 00:08:52.200 --> 00:08:56.166 doormat to having to drive back to someone's house to 00:08:56.233 --> 00:09:00.100 collect payment because the homeowner wasn't there. 00:09:00.166 --> 00:09:02.933 So all of these things, you know, really gave some 00:09:03.000 --> 00:09:07.166 insight into the friction involved in collecting 00:09:07.233 --> 00:09:08.933 payments for our customers. 00:09:09.000 --> 00:09:15.399 So fast forward to 2015, 2016, and we had some very, 00:09:15.466 --> 00:09:17.700 very basic payments.  00:09:17.766 --> 00:09:20.533 I don't even want to call them integrations, but for 00:09:20.600 --> 00:09:22.533 lack of a better word, we'll call them integrations. 00:09:22.600 --> 00:09:27.600 And we began to see that Stripe at the time was really pulling 00:09:27.666 --> 00:09:30.233 away with this best-in-class developer experience that we 00:09:30.299 --> 00:09:31.566 wanted to build off of. 00:09:31.633 --> 00:09:35.666 We began to see that a lot of our sort of adjacent products 00:09:35.733 --> 00:09:40.100 were beginning to add this payment thing, and so we decided 00:09:40.166 --> 00:09:44.399 that we should probably invest in this, but the way 00:09:44.466 --> 00:09:49.533 we thought about it was sort of naive to some extent. 00:09:49.600 --> 00:09:52.500 We really approached it from the perspective of 00:09:52.566 --> 00:09:55.733 creating a best-in-class experience, because we 00:09:55.799 --> 00:09:59.833 viewed the benefit as one of retention, not really revenue. 00:09:59.899 --> 00:10:03.066 So we were trying to design the experience around how do we 00:10:03.133 --> 00:10:06.299 create the best experience for the service consumer and the 00:10:06.366 --> 00:10:10.100 service pro, not necessarily the one that was going to 00:10:10.166 --> 00:10:12.266 derive us the most money. 00:10:12.333 --> 00:10:15.866 So that was a very, very interesting kind of phase of 00:10:15.933 --> 00:10:18.466 rolling out payments was, you know, creating this great 00:10:18.533 --> 00:10:21.833 experience and sort of learning along the way. 00:10:21.899 --> 00:10:23.266 >> KATE JENSEN: I love that. 00:10:23.333 --> 00:10:26.366 As we learned in the keynote earlier and what Aakash 00:10:26.433 --> 00:10:29.700 referenced earlier, payments can be really complex, and there are 00:10:29.766 --> 00:10:32.100 a lot of different pieces to building payments into software. 00:10:32.166 --> 00:10:33.266 >> JEFF SHERLOCK: Yeah. 00:10:33.333 --> 00:10:34.266 >> KATE JENSEN: Where did you start? 00:10:34.333 --> 00:10:36.700 What were the things that mattered most for your MVP? 00:10:36.766 --> 00:10:38.633 >> JEFF SHERLOCK: Yeah, great question. 00:10:38.700 --> 00:10:44.166 So most small businesses don't want to have to manage 10 or 20 00:10:44.233 --> 00:10:46.933 different pieces of software. 00:10:47.000 --> 00:10:50.399 They come to us, and they buy our solution because they're 00:10:50.466 --> 00:10:51.899 looking for simplicity. 00:10:51.966 --> 00:10:56.433 So when we started out, it was how do we create the 00:10:56.500 --> 00:10:58.166 most deadsimple solution. 00:10:58.233 --> 00:11:00.733 It wasn't, you know, how do we provide, you know, the most 00:11:00.799 --> 00:11:03.566 options; it was, okay, how do we provide a dead simple solution. 00:11:03.633 --> 00:11:06.600 So we really started with the credit card payments 00:11:06.666 --> 00:11:10.700 as the  as really sort of the starting point. 00:11:10.766 --> 00:11:15.133 And when we think about where we embedded that, it was looking at 00:11:15.200 --> 00:11:19.566 our existing flow and starting off with the most common flow 00:11:19.633 --> 00:11:24.299 that we had, which was let's allow the service pros a way to 00:11:24.366 --> 00:11:29.399 tell their customers how much was owed, send them an invoice, 00:11:29.466 --> 00:11:32.366 have them be able to pay that invoice digitally, and then 00:11:32.433 --> 00:11:36.200 tell the service pro this is how much money you made in 00:11:36.266 --> 00:11:38.700 a report monthly or weekly. 00:11:38.766 --> 00:11:43.966 That sounds sort of comically simple and was a very  we 00:11:44.033 --> 00:11:48.333 learned a lot of sort of hardfought lessons in 00:11:48.399 --> 00:11:51.033 how hard that can be just to create a really, 00:11:51.100 --> 00:11:52.933 really simple experience. 00:11:53.000 --> 00:11:56.600 So I think it  you know, I think the advice for people in this 00:11:56.666 --> 00:11:59.600 room is to think through what those really core common use 00:11:59.666 --> 00:12:02.766 cases are and start from there. 00:12:02.833 --> 00:12:04.366 >> KATE JENSEN: And since then, you've added a lot. 00:12:04.433 --> 00:12:05.633 >> JEFF SHERLOCK: Yeah. 00:12:05.700 --> 00:12:07.100 >> KATE JENSEN: Your financial services offering 00:12:07.166 --> 00:12:08.666 is very, very robust. 00:12:08.733 --> 00:12:11.299 Can you walk us through how you thought about what to add next 00:12:11.366 --> 00:12:12.666 and what you have added next? 00:12:12.733 --> 00:12:14.066 >> JEFF SHERLOCK: Yeah, absolutely. 00:12:14.133 --> 00:12:16.633 So two different things. 00:12:16.700 --> 00:12:19.866 There are sort of two areas that we've added a 00:12:19.933 --> 00:12:24.066 lot of different payment solutions and fintech offers. 00:12:24.133 --> 00:12:28.299 So one is we do provide the ability for service pros to 00:12:28.366 --> 00:12:30.500 collect in-person payments. 00:12:30.566 --> 00:12:33.799 This is not a huge piece of our business, but it helps us 00:12:33.866 --> 00:12:37.399 provide a more complete solution for those that need it. 00:12:37.466 --> 00:12:40.799 I think it's an important thing to understand is that 00:12:40.866 --> 00:12:43.700 payments for us at least, we've seen that it's sort of 00:12:43.766 --> 00:12:47.633 hard to offer an 85% solution. 00:12:47.700 --> 00:12:51.766 You know, that decision to trust us with the payment 00:12:51.833 --> 00:12:56.666 flow for a business is sort of really, really important 00:12:56.733 --> 00:12:57.799 to those business owners. 00:12:57.866 --> 00:12:59.166 This is their livelihood. 00:12:59.233 --> 00:13:02.200 And so, you know, simple things like being able to offer 00:13:02.266 --> 00:13:04.933 in-person payments can often overcome some objections 00:13:05.000 --> 00:13:09.600 even if it isn't a huge chunk of their revenue. 00:13:09.666 --> 00:13:12.700 The second piece that we've seen a lot of success 00:13:12.766 --> 00:13:16.899 with is around instant payouts and Stripe Capital. 00:13:16.966 --> 00:13:22.433 And in essence, that's all about providing the SP, the 00:13:22.500 --> 00:13:25.600 service pros, access to their revenue earlier. 00:13:25.666 --> 00:13:30.500 We saw in the keynote, which I think is a great stat, 82% of 00:13:30.566 --> 00:13:35.466 all small I think SMBs face cash flow problems. 00:13:35.533 --> 00:13:37.000 We hear this all the time. 00:13:37.066 --> 00:13:41.533 So giving them access to their revenue earlier so that they can 00:13:41.600 --> 00:13:45.100 run their business, it's been hugely, hugely successful. 00:13:45.166 --> 00:13:48.166 >> KATE JENSEN: How do you think about what to add next? 00:13:48.233 --> 00:13:50.366 >> JEFF SHERLOCK: That's a good question. 00:13:50.433 --> 00:13:55.333 So when I think about what to add next, we really focus 00:13:55.399 --> 00:13:59.566 on how do we spin that flywheel even faster. 00:13:59.633 --> 00:14:00.566 >> KATE JENSEN: Yeah. 00:14:00.633 --> 00:14:02.933 >> JEFF SHERLOCK: So how do we get more money into the 00:14:03.000 --> 00:14:06.899 hands of our customers earlier and earlier from 00:14:06.966 --> 00:14:10.000 that moment of payment? 00:14:10.066 --> 00:14:13.100 On top of that, we also think about how do we make it simpler 00:14:13.166 --> 00:14:16.766 and simpler to access payments or any of these other tools. 00:14:16.833 --> 00:14:19.100 So it's all about kind of providing that simplicity 00:14:19.166 --> 00:14:22.266 and also increasing or sort of decreasing the 00:14:22.333 --> 00:14:24.066 time to access those funds. 00:14:24.133 --> 00:14:25.166 >> KATE JENSEN: Love it. 00:14:25.233 --> 00:14:27.566 And then I'm going to pivot our conversation a little bit 00:14:27.633 --> 00:14:28.633 >> JEFF SHERLOCK: Okay. 00:14:28.700 --> 00:14:29.566 >> KATE JENSEN: and ask you about how you think about 00:14:29.633 --> 00:14:32.000 managing payments and what specifically you actually 00:14:32.066 --> 00:14:33.600 look at those KPIs. 00:14:33.666 --> 00:14:37.166 For example, I hear all the timeI get asked, "What 00:14:37.233 --> 00:14:39.466 does a good attach rate for payments look like?" 00:14:39.533 --> 00:14:43.166 We see platforms ranging from, you know, really early 00:14:43.233 --> 00:14:46.200 days, no attach yet, all the way up to 90+ percent. 00:14:46.266 --> 00:14:48.299 How do you think about that internally, and what are some of 00:14:48.366 --> 00:14:50.166 the other KPIs that you measure? 00:14:50.233 --> 00:14:51.666 >> JEFF SHERLOCK: Great question. 00:14:51.733 --> 00:14:57.299 So I think that we've been fortunate to focus on the home 00:14:57.366 --> 00:15:01.399 service industry, which has a ton of opportunity and has been 00:15:01.466 --> 00:15:04.166 very sort of economically stable for, you know, quite 00:15:04.233 --> 00:15:06.233 a long time and growing. 00:15:06.299 --> 00:15:10.733 I think that one of the challenges is that we see that 00:15:10.799 --> 00:15:16.833 check and cash is still a very, very common payment method. 00:15:16.899 --> 00:15:20.933 So we see that -- when you think about attach rates, 00:15:21.000 --> 00:15:24.500 you really have to look at what's the endemic habituated 00:15:24.566 --> 00:15:26.033 behavior that already exists. 00:15:26.100 --> 00:15:28.566 If you go into any coffee shop or restaurant, I'm sure that 00:15:28.633 --> 00:15:31.933 the  you know, the expectation is that you're going to be able 00:15:32.000 --> 00:15:35.233 to pay with a credit card, and, you know, it's probably 95% of 00:15:35.299 --> 00:15:37.866 the revenue is from card. 00:15:37.933 --> 00:15:40.033 For us, it's a little different. 00:15:40.100 --> 00:15:46.100 And so we look at all sorts of metrics around what is the 00:15:46.166 --> 00:15:47.766 addressable, you know, market. 00:15:47.833 --> 00:15:51.366 You know, if someone is doing, you know, home renovations that 00:15:51.433 --> 00:15:56.133 cost $50,000, you know, how much of that can we get onto a card? 00:15:56.200 --> 00:15:57.799 You know, it's probably going to be smaller than 00:15:57.866 --> 00:15:59.566 transactions at the $500 mark. 00:15:59.633 --> 00:16:03.299 So we really try and segment a lot of the behavior we 00:16:03.366 --> 00:16:06.066 see to figure out what is that addressable market. 00:16:06.133 --> 00:16:10.066 So when you think about attach rates, it's really about how do 00:16:10.133 --> 00:16:13.266 we change a little bit of that behavior, make it a 00:16:13.333 --> 00:16:16.600 little bit easier, but also understand, you know, what 00:16:16.666 --> 00:16:18.733 are some of the natural ceilings that might exist. 00:16:18.799 --> 00:16:19.799 >> KATE JENSEN: I love that. 00:16:19.866 --> 00:16:22.533 So you're thinking about how to not only measure attach 00:16:22.600 --> 00:16:24.266 rate but also think about what they should be  00:16:24.333 --> 00:16:25.233 >> JEFF SHERLOCK: Right. 00:16:25.299 --> 00:16:26.100 >> KATE JENSEN: and then what sort of 00:16:26.166 --> 00:16:27.200 targets to set internally. 00:16:27.266 --> 00:16:28.399 What are some of the other targets that you 00:16:28.466 --> 00:16:29.666 are setting internally  00:16:29.733 --> 00:16:30.700 >> JEFF SHERLOCK: Yeah. 00:16:30.766 --> 00:16:31.799 >> KATE JENSEN: to make sure you're doing well? 00:16:31.866 --> 00:16:35.066 >> JEFF SHERLOCK: So three key metrics that we think about 00:16:35.133 --> 00:16:39.233 every day when it comes to payments in fintech. 00:16:39.299 --> 00:16:42.333 The first is what we call the enablement rate. 00:16:42.399 --> 00:16:46.633 So what percentage of our SPs have signed up 00:16:46.700 --> 00:16:48.466 for Jobber payments? 00:16:48.533 --> 00:16:50.566 The second is the active rate. 00:16:50.633 --> 00:16:54.600 So of the ones that have enabled Jobber payments, on a monthly 00:16:54.666 --> 00:16:57.833 basis, how many of them have actually transacted 00:16:57.899 --> 00:16:59.933 using Jobber payments? 00:17:00.000 --> 00:17:03.266 And then the third, which I think is the most interesting, 00:17:03.333 --> 00:17:07.233 personally, is GPV over GSV. 00:17:07.299 --> 00:17:13.099 And this metric is effectively what percentage of the invoiced 00:17:13.166 --> 00:17:17.933 volume that exists and flows through our SPs  they send out, 00:17:18.000 --> 00:17:21.466 you know, lots of invoices  what percentage of that is transacted 00:17:21.533 --> 00:17:24.566 via our payments product? 00:17:24.633 --> 00:17:29.066 And this is a very, very I think interesting metric, 00:17:29.133 --> 00:17:31.900 and it requires a lot of segmentation to figure out 00:17:31.966 --> 00:17:34.400 the different strategies in terms of how to move it. 00:17:34.466 --> 00:17:38.200 So I think that those three metrics are probably pretty 00:17:38.266 --> 00:17:42.333 universal to anyone running a similar type of business 00:17:42.400 --> 00:17:45.599 to ours in this audience. 00:17:45.666 --> 00:17:46.799 >> KATE JENSEN: Love it. 00:17:46.866 --> 00:17:49.500 Which one do you think matters most, or do you measure all of 00:17:49.566 --> 00:17:50.666 them at the same time? 00:17:50.733 --> 00:17:52.933 And tell us a little bit about the different teams 00:17:53.000 --> 00:17:54.900 that are tied to those metrics. 00:17:54.966 --> 00:17:56.500 This is another question I get a lot. 00:17:56.566 --> 00:17:58.333 What teams are involved in this? 00:17:58.400 --> 00:18:00.000 >> JEFF SHERLOCK: Yeah, good question. 00:18:00.066 --> 00:18:04.500 So the teams that are attached to these, if you think about the 00:18:04.566 --> 00:18:08.466 enablement rate and the active rate, those are going to look a 00:18:08.533 --> 00:18:12.033 little bit more like growth teams, because what they're 00:18:12.099 --> 00:18:17.866 trying to do is really affect the behavior. 00:18:17.933 --> 00:18:22.033 GPV over GSV is it really depends. 00:18:22.099 --> 00:18:26.200 If you're trying to get someone that's transacting half their 00:18:26.266 --> 00:18:30.400 volume to transact another  the other half through you, 00:18:30.466 --> 00:18:33.333 you really have to understand what is  how are they 00:18:33.400 --> 00:18:34.700 transacting the other half. 00:18:34.766 --> 00:18:35.799 Is it cash? 00:18:35.866 --> 00:18:36.900 Is it check? 00:18:36.966 --> 00:18:40.333 Is it some payment method you don't even know about? 00:18:40.400 --> 00:18:45.966 So you really have to dig deep and really understand that. 00:18:46.033 --> 00:18:48.333 And changing that behavior is going to look different than 00:18:48.400 --> 00:18:52.466 getting someone that's only transacting 1% of their volume 00:18:52.533 --> 00:18:53.866 to transact, you know, 10%. 00:18:53.933 --> 00:18:56.466 So you really have to segment both the behavior, 00:18:56.533 --> 00:18:59.700 the volume the transaction sizes to understand and 00:18:59.766 --> 00:19:01.066 segment those things. 00:19:01.133 --> 00:19:04.000 So when it comes to teams, I'd say that GPV over GSV is a much 00:19:04.066 --> 00:19:07.900 more distributed effort and the enablement rate and active rate 00:19:07.966 --> 00:19:10.900 much more focused and more sort of growth oriented. 00:19:10.966 --> 00:19:12.166 >> KATE JENSEN: I love that, thank you. 00:19:12.233 --> 00:19:13.333 >> JEFF SHERLOCK: Yeah. 00:19:13.400 --> 00:19:15.933 >> KATE JENSEN: As a side note, GPV, GSV  00:19:16.000 --> 00:19:17.033 >> JEFF SHERLOCK: Oh, sorry, yeah. 00:19:17.099 --> 00:19:18.133 >> KATE JENSEN  GMV, there are so many different ways 00:19:18.200 --> 00:19:20.599 to talk about it, it's total payment volume that 00:19:20.666 --> 00:19:22.299 any of your customers see. 00:19:22.366 --> 00:19:25.200 But you alluded to, but really to bring that home, 00:19:25.266 --> 00:19:26.233 it's so important. 00:19:26.299 --> 00:19:27.500 >> JEFF SHERLOCK: Yeah, good call. 00:19:27.566 --> 00:19:29.700 >> KATE JENSEN: You referenced this a little bit earlier, but 00:19:29.766 --> 00:19:31.566 could you talk a little bit more about how you think about 00:19:31.633 --> 00:19:33.400 payments monetization at Jobber? 00:19:33.466 --> 00:19:36.166 >> JEFF SHERLOCK: Yeah, that is a - that's a great question. 00:19:36.233 --> 00:19:40.833 So when I think about payments monetization, I think about the 00:19:40.900 --> 00:19:46.033 fact that, you know, the magic for, you know, us is in that 00:19:46.099 --> 00:19:47.866 full integrated solution. 00:19:47.933 --> 00:19:54.099 And so for us we still are very focused on -- you know, 00:19:54.166 --> 00:19:55.766 we're a SaaS business; right? 00:19:55.833 --> 00:19:56.733 So we still are very, very focused on increasing, you know, 00:19:56.799 --> 00:20:03.166 customer account and growing, you know, that core SaaS 00:20:03.233 --> 00:20:09.966 business, but payments is a significant and very meaningful 00:20:10.033 --> 00:20:15.766 chunk of our revenue, and so we think a lot about how that  you 00:20:15.833 --> 00:20:17.200 know, how to grow that. 00:20:17.266 --> 00:20:19.966 And one of the things that's sort of a  you know, you 00:20:20.033 --> 00:20:23.466 probably heard it this morning that echoes very true for us is 00:20:23.533 --> 00:20:27.166 that we really like the payments revenue because 00:20:27.233 --> 00:20:29.299 it's so tightly aligned. 00:20:29.366 --> 00:20:32.566 We only get more payments revenue from our customers if 00:20:32.633 --> 00:20:37.299 they are more successful, and that is just a very powerful 00:20:37.366 --> 00:20:41.566 concept to alignthe things that are going to help our customers 00:20:41.633 --> 00:20:44.700 grow are the same things that are going to help, you know, 00:20:44.766 --> 00:20:45.599 Jobber's revenue grow. 00:20:45.666 --> 00:20:49.133 So we really think about how do we help our customers 00:20:49.200 --> 00:20:51.133 grow first and foremost. 00:20:51.200 --> 00:20:55.700 And as a benefit  as a secondary benefit, you know, 00:20:55.766 --> 00:20:58.099 Jobber also grows. 00:20:58.166 --> 00:20:59.866 >> KATE JENSEN: That rings very true for us here at 00:20:59.933 --> 00:21:01.133 Stripe as well. 00:21:01.200 --> 00:21:04.933 There are a lot of people in the audience who are probably about 00:21:05.000 --> 00:21:07.133 three years behind you in terms of how mature 00:21:07.200 --> 00:21:08.366 your payments business is. 00:21:08.433 --> 00:21:09.333 >> JEFF SHERLOCK: Yeah. 00:21:09.400 --> 00:21:10.599 >> KATE JENSEN: If you could go back in time and give 00:21:10.666 --> 00:21:13.266 yourself advice, what advice would you give? 00:21:13.333 --> 00:21:14.733 >> JEFF SHERLOCK: Yeah, this is a good question. 00:21:14.799 --> 00:21:16.566 I have two things I would say. 00:21:16.633 --> 00:21:21.766 One is think very deeply about hiring. 00:21:21.833 --> 00:21:26.299 And one of the things that was I think a challenge in our early 00:21:26.366 --> 00:21:29.500 days and I kind of alluded to it is that we didn't have any 00:21:29.566 --> 00:21:34.500 inhouse payments experts or expertise even, and that was  00:21:34.566 --> 00:21:35.666 that was a challenge. 00:21:35.733 --> 00:21:39.333 We didn't really understand the economic, you know, flow of 00:21:39.400 --> 00:21:41.333 -- you know, all the complexity involved in running 00:21:41.400 --> 00:21:42.799 a true payments business. 00:21:42.866 --> 00:21:45.433 And so getting it off the ground and running it, a lot 00:21:45.500 --> 00:21:46.766 of sort of trial by fire. 00:21:46.833 --> 00:21:49.966 And so it really would have fast forwarded a lot of our learning 00:21:50.033 --> 00:21:54.566 just to have, you know, I think more inhouse expertise. 00:21:54.633 --> 00:21:59.633 The second is I would say analytics and making sure your 00:21:59.700 --> 00:22:03.833 analytics infrastructure and function is up to snuff. 00:22:03.900 --> 00:22:06.166 I will share a little secret. 00:22:06.233 --> 00:22:09.033 When we were getting our payments business off the 00:22:09.099 --> 00:22:13.733 ground, all of our analytics were run off of one shared 00:22:13.799 --> 00:22:15.299 Google sheet called The Data Shed. 00:22:15.366 --> 00:22:16.933 (Laughter) 00:22:17.000 --> 00:22:20.133 >> JEFF SHERLOCK: So it was painful. 00:22:20.200 --> 00:22:23.433 I would definitely make sure that you have, you know, a 00:22:23.500 --> 00:22:25.833 really solid analytics foundation to build off of. 00:22:25.900 --> 00:22:28.333 >> KATE JENSEN: The giggles say that a lot of us have a Data 00:22:28.400 --> 00:22:30.099 Shed somewhere internally. 00:22:30.166 --> 00:22:31.933 And my final question for you. 00:22:32.000 --> 00:22:33.599 What comes next? 00:22:33.666 --> 00:22:35.700 >> JEFF SHERLOCK: Yeah, this is a good question. 00:22:35.766 --> 00:22:39.633 I mean, I've sort of alluded to it a little bit, and I think 00:22:39.700 --> 00:22:44.966 that the keynote was also a great, you know, prelude to a 00:22:45.033 --> 00:22:48.700 lot of the things that we're working on, but we're really 00:22:48.766 --> 00:22:54.599 still very focused on how we just continually decrease 00:22:54.666 --> 00:22:56.633 that time to access funds. 00:22:56.700 --> 00:23:00.833 So how do we get more revenue, more different payment methods 00:23:00.900 --> 00:23:06.066 into the hands of, you know, our customers, their customers? 00:23:06.133 --> 00:23:08.666 How do we streamline that process to be as 00:23:08.733 --> 00:23:11.166 frictionless as possible? 00:23:11.233 --> 00:23:13.933 The second thing I would say that we're focused on is 00:23:14.000 --> 00:23:18.866 how do we embed more value into more spots within 00:23:18.933 --> 00:23:21.200 our existing workflows. 00:23:21.266 --> 00:23:24.700 So everything from, you know, how do we think about financing 00:23:24.766 --> 00:23:28.266 to capital, how can we embed that in more places, these are 00:23:28.333 --> 00:23:31.566 all things that we're always actively working on, but when 00:23:31.633 --> 00:23:34.933 you think about the future, it's just how do we scale that up. 00:23:35.000 --> 00:23:38.099 You know, there's a ton of value that we can create for our 00:23:38.166 --> 00:23:41.866 customers by providing them more and more fintech solutions. 00:23:41.933 --> 00:23:46.599 And maybe the last stat is that  that I'll share with you all is 00:23:46.666 --> 00:23:50.266 that -- you alluded to it before, but we see that the 00:23:50.333 --> 00:23:54.599 service pros that use our payments products retain 00:23:54.666 --> 00:23:58.566 at a far, far higher rate than ones that don't. 00:23:58.633 --> 00:24:04.066 So the benefit is not just the economic benefit from, you know, 00:24:04.133 --> 00:24:09.000 a few basis points of transacted volume, but it's also that our 00:24:09.066 --> 00:24:10.099 customers are more successful. 00:24:10.166 --> 00:24:11.866 They stick around on our platform. 00:24:11.933 --> 00:24:13.599 So we're going to continue to find ways to 00:24:13.666 --> 00:24:16.400 embed fintech solutions in more and more places. 00:24:16.466 --> 00:24:17.700 >> KATE JENSEN: That's exciting to hear. 00:24:17.766 --> 00:24:20.533 Thank you for everything you've done with us so far. 00:24:20.599 --> 00:24:22.366 We're so excited to see what comes next. 00:24:22.433 --> 00:24:23.500 >> JEFF SHERLOCK: Yeah. 00:24:23.566 --> 00:24:24.566 >> KATE JENSEN: And now I'll bring it back to Aakash. 00:24:24.633 --> 00:24:25.866 >> AAKASH SAHNEY: Thank you both so much. 00:24:25.933 --> 00:24:28.266 It's awesome to see how Jobber thinks about payments and what's 00:24:28.333 --> 00:24:29.366 next for their business. 00:24:29.433 --> 00:24:31.666 It's just also such a huge upgrade using Jobber 00:24:31.733 --> 00:24:34.433 compared to the soggy checks under the doormat 00:24:34.500 --> 00:24:36.266 that I think Jeff mentioned. 00:24:36.333 --> 00:24:39.066 All right, and now I want to discuss a trend I'm personally 00:24:39.133 --> 00:24:41.299 really, really excited about, and that's the fact that 00:24:41.366 --> 00:24:44.700 platform payments opportunities are everywhere, often 00:24:44.766 --> 00:24:47.000 in really surprising places. 00:24:47.066 --> 00:24:50.833 We mentioned this survey earlier that 75% of businesses say 00:24:50.900 --> 00:24:53.533 that they're likely to embed payments or financial services 00:24:53.599 --> 00:24:55.799 into their products in 2023. 00:24:55.866 --> 00:24:58.799 And from the same survey, 48% said that they were already 00:24:58.866 --> 00:25:01.366 pursuing a marketplace revenue stream to enable the 00:25:01.433 --> 00:25:02.666 exchange of goods and services. 00:25:02.733 --> 00:25:05.033 So what are some examples? 00:25:05.099 --> 00:25:07.133 Already software platforms are everywhere you look. 00:25:07.200 --> 00:25:12.200 They - we just talked about Jobber and several others. 00:25:12.266 --> 00:25:14.266 There are also a ton of marketplaces that have 00:25:14.333 --> 00:25:17.900 to make payments and payouts super simple. 00:25:17.966 --> 00:25:19.833 Take the on-demand economy, for example. 00:25:19.900 --> 00:25:22.099 You probably used Uber, Lyft, or Turo on this 00:25:22.166 --> 00:25:23.200 trip to San Francisco. 00:25:23.266 --> 00:25:25.166 And when you get home, there's a good chance you'll order some 00:25:25.233 --> 00:25:26.733 food from DoorDash or Instacart. 00:25:26.799 --> 00:25:27.799 I know I will. 00:25:27.866 --> 00:25:31.766 More recently, we've seen an explosion in the creator economy 00:25:31.833 --> 00:25:34.500 as platforms like Substack, Spotify, and WordPress are 00:25:34.566 --> 00:25:35.599 helping creators to get paid. 00:25:35.666 --> 00:25:38.333 But it's not just these native eCommerce 00:25:38.400 --> 00:25:39.766 and marketplace businesses. 00:25:39.833 --> 00:25:41.733 Increasingly, some of the world's largest and 00:25:41.799 --> 00:25:43.900 most established companies are integrating payments 00:25:43.966 --> 00:25:46.700 and innovating at a really fast pace. 00:25:46.766 --> 00:25:49.666 These enterprises are entering new channels, going direct to 00:25:49.733 --> 00:25:52.799 consumer, launching their own marketplace offerings that all 00:25:52.866 --> 00:25:55.666 require them to rethink how buyers are making purchases. 00:25:55.733 --> 00:25:58.633 Here are some of my favorite examples. 00:25:58.700 --> 00:26:01.299 BMW has a new direct-to- consumer franchise model. 00:26:01.366 --> 00:26:03.000 They're improving the experience for consumers 00:26:03.066 --> 00:26:04.433 and for dealerships. 00:26:04.500 --> 00:26:06.566 They want to make it easy to preorder cars 00:26:06.633 --> 00:26:08.333 and pay for service online. 00:26:08.400 --> 00:26:10.700 To enable this, they use Stripe Connect to route funds from the 00:26:10.766 --> 00:26:13.099 car buyer to the dealership. 00:26:13.166 --> 00:26:15.400 Consumers get a better experience with modern payment 00:26:15.466 --> 00:26:17.299 methods and checkout flows. 00:26:17.366 --> 00:26:20.033 Dealers get a simplified experience for online preorders 00:26:20.099 --> 00:26:21.233 and maintenance sales. 00:26:21.299 --> 00:26:24.866 And then BMW finance teams get faster streamlined access to 00:26:24.933 --> 00:26:25.900 important revenue insight. 00:26:25.966 --> 00:26:27.500 So it's sort of like a win-win-win across all 00:26:27.566 --> 00:26:30.099 of the parties involved. 00:26:30.166 --> 00:26:32.833 Another really cool example is H&M, a leading clothing 00:26:32.900 --> 00:26:34.266 and lifestyle retailer. 00:26:34.333 --> 00:26:37.700 They used Stripe Connect to launch a resale marketplace 00:26:37.766 --> 00:26:40.466 in 2021, where any consumer can buy or sell 00:26:40.533 --> 00:26:42.966 clothing and accessories. 00:26:43.033 --> 00:26:45.333 And what's really striking is that all of these examples are 00:26:45.400 --> 00:26:47.299 from, like, really diverse industries, you know, 00:26:47.366 --> 00:26:51.500 automotive, online shopping, on-demand delivery, apparel, 00:26:51.566 --> 00:26:53.700 but they all face a similar challenge when it comes to 00:26:53.766 --> 00:26:56.033 payments, and that's facilitating money movement 00:26:56.099 --> 00:26:58.066 between multiple parties. 00:26:58.133 --> 00:27:00.466 So all of these companies use Stripe Connect to power these 00:27:00.533 --> 00:27:03.333 experiences for their users. 00:27:03.400 --> 00:27:04.666 One example I think is particularly 00:27:04.733 --> 00:27:06.066 compelling is Microsoft. 00:27:06.133 --> 00:27:09.599 Microsoft  the Microsoft Teams collaboration product offers 00:27:09.666 --> 00:27:12.433 video conferencing, voice calls, and messaging to 00:27:12.500 --> 00:27:15.566 more than 300 million businesses worldwide. 00:27:15.633 --> 00:27:18.266 Stripe is going to power Teams' payments, allowing meeting 00:27:18.333 --> 00:27:21.366 hosts to accept realtime card payments for virtual 00:27:21.433 --> 00:27:24.333 appointments, for classes, events, and things like that. 00:27:24.400 --> 00:27:26.133 So let's hear from Kate again as she chats with 00:27:26.200 --> 00:27:28.866 Brenna Robinson, the GM of Modern Work at Microsoft. 00:27:28.933 --> 00:27:30.366 (Applause) 00:27:33.166 --> 00:27:34.633 >> KATE JENSEN: Thank you, and hello again. 00:27:34.700 --> 00:27:39.333 This time I'm so happy to be here with Brenna. 00:27:39.400 --> 00:27:41.033 Brenna, can you introduce yourself a little bit? 00:27:41.099 --> 00:27:42.166 >> BRENNA ROBINSON: Yeah, absolutely. 00:27:42.233 --> 00:27:46.833 So I'm the GM for Modern Work for SMB audiences at Microsoft. 00:27:46.900 --> 00:27:49.700 Modern Work is sort of all the products you know and 00:27:49.766 --> 00:27:52.700 love, Microsoft Word, Outlook, as well as Teams. 00:27:52.766 --> 00:27:56.599 And I focus on our SMB from VSB all the way up 00:27:56.666 --> 00:27:57.799 to mid-market audiences. 00:27:57.866 --> 00:28:00.599 So you probably know Microsoft as this huge 00:28:00.666 --> 00:28:02.400 enterprise-focused company. 00:28:02.466 --> 00:28:03.633 Yes, we are. 00:28:03.700 --> 00:28:06.533 But we also see this huge opportunity in the bottom half 00:28:06.599 --> 00:28:10.133 of the market, where we know 99% of businesses are small or 00:28:10.200 --> 00:28:13.000 medium businesses, that 1% isn't going to get us 00:28:13.066 --> 00:28:14.033 the growth we want. 00:28:14.099 --> 00:28:17.900 So I joined to take on this new role and invest in SMB. 00:28:17.966 --> 00:28:18.900 >> KATE JENSEN: I love it. 00:28:18.966 --> 00:28:20.833 That's so exciting, and congratulations. 00:28:20.900 --> 00:28:25.000 Most of us, when we think about Microsoft, especially  00:28:25.066 --> 00:28:27.666 especially the part of Microsoft that you're working in  00:28:27.733 --> 00:28:28.799 >> BRENNA ROBINSON: Yep. 00:28:28.866 --> 00:28:29.833 >> KATE JENSEN: we're thinking about that datamart spreadsheet 00:28:29.900 --> 00:28:30.900 that we're talking about. 00:28:30.966 --> 00:28:34.299 Can you tell me a little bit more about how you're thinking 00:28:34.366 --> 00:28:37.166 about bringing Microsoft to SMB and how you're 00:28:37.233 --> 00:28:39.200 changing the perception? 00:28:39.266 --> 00:28:40.466 >> BRENNA ROBINSON: Yeah, definitely. 00:28:40.533 --> 00:28:43.033 So I think there is perception. 00:28:43.099 --> 00:28:44.266 There's product truth. 00:28:44.333 --> 00:28:46.233 And we want to work across all of it. 00:28:46.299 --> 00:28:49.700 The strength we have is this incredible base of products that 00:28:49.766 --> 00:28:51.266 you can really use for anything. 00:28:51.333 --> 00:28:53.200 I think we think of these tools like Teams 00:28:53.266 --> 00:28:54.466 as internal collaborate. 00:28:54.533 --> 00:28:56.200 You talk to your team on these calls. 00:28:56.266 --> 00:28:58.299 That's not the way that they're used often. 00:28:58.366 --> 00:29:01.700 So a lot of what I'm focusing on is, hey, we know what SMBs want, 00:29:01.766 --> 00:29:05.266 which is to grow their business first and foremost, to reach 00:29:05.333 --> 00:29:08.033 their customers, and how do we use what we already have, 00:29:08.099 --> 00:29:11.099 which is really pretty good products that work really 00:29:11.166 --> 00:29:13.033 well, but just pivot them. 00:29:13.099 --> 00:29:16.366 So my job is kind of to take it and tweak it that's both, you 00:29:16.433 --> 00:29:20.033 know, the messaging and how we talk about it, but also how can 00:29:20.099 --> 00:29:21.866 we do things like this partnership, where we're saying, 00:29:21.933 --> 00:29:24.700 hey, how do you use our products not just for internal 00:29:24.766 --> 00:29:27.833 communications, but to reach your customers, make more money 00:29:27.900 --> 00:29:30.799 and grow your business, which we always know in every research 00:29:30.866 --> 00:29:33.633 I've ever done is the number one thing; right? 00:29:33.700 --> 00:29:36.299 Personally, I've ran marketing at startups not too far from 00:29:36.366 --> 00:29:39.633 here in my career, and I can tell you, you know, when you're 00:29:39.700 --> 00:29:44.033 a 50-person company, that customer is so critical to, 00:29:44.099 --> 00:29:46.833 frankly, paying your bills and keeping your team employed. 00:29:46.900 --> 00:29:49.233 So you wake up every day, you look at those revenue metrics 00:29:49.299 --> 00:29:53.266 like you've never looked at, but your company is-not everyone is 00:29:53.333 --> 00:29:56.733 in that every single moment, but for the smaller companies, it's 00:29:56.799 --> 00:29:59.000 their lifeblood, so we want to make sure we're making our 00:29:59.066 --> 00:30:01.966 products so that they can fit their number one need, 00:30:02.033 --> 00:30:03.666 which is essentially to stay afloat and grow. 00:30:03.733 --> 00:30:04.866 >> KATE JENSEN: I love that. 00:30:04.933 --> 00:30:06.733 And so how did you think specifically about building 00:30:06.799 --> 00:30:08.799 payments into the product suite that you have? 00:30:08.866 --> 00:30:09.733 >> BRENNA ROBINSON: Yeah, definitely. 00:30:09.799 --> 00:30:11.333 So we talked about this before. 00:30:11.400 --> 00:30:13.833 We look at a bunch of different datasets. 00:30:13.900 --> 00:30:16.933 I think it's a lit art and science, as most things are. 00:30:17.000 --> 00:30:20.333 So from the science point we look at, you know, what 00:30:20.400 --> 00:30:22.799 products are being used in our base, who's using them, 00:30:22.866 --> 00:30:23.900 how they're using them. 00:30:23.966 --> 00:30:27.866 We are just able to announce, like, 300 million Teams users. 00:30:27.933 --> 00:30:31.366 The SMB amount is growing 30% year over year. 00:30:31.433 --> 00:30:33.133 That is much larger than any other audience. 00:30:33.200 --> 00:30:36.066 So we look at that and we go, okay, Teams is a place. 00:30:36.133 --> 00:30:36.933 People are there. 00:30:37.000 --> 00:30:38.733 They like it; they're growing. 00:30:38.799 --> 00:30:41.799 Then we ask our audiences, internal and external, say, hey, 00:30:41.866 --> 00:30:42.766 what do you want to do? 00:30:42.833 --> 00:30:44.366 Like what are your most important jobs to be done? 00:30:44.433 --> 00:30:45.633 What keeps you up at night? 00:30:45.700 --> 00:30:49.466 And then I kind of look internal, external, plus a 00:30:49.533 --> 00:30:52.200 little bit of art, what feels right, what feels 00:30:52.266 --> 00:30:54.533 like an interesting and exciting partnership. 00:30:54.599 --> 00:30:57.099 And here we said, hey, if people want to make money, 00:30:57.166 --> 00:30:59.266 let's have them make it in our platform; right? 00:30:59.333 --> 00:31:02.400 Let's not have them go somewhere else to get that revenue. 00:31:02.466 --> 00:31:07.299 I always make this example about I think post-pandemic we thought 00:31:07.366 --> 00:31:10.433 that I think things would kind of go back to normal, 00:31:10.500 --> 00:31:12.099 but I don't ever know I'm, like, meeting my 00:31:12.166 --> 00:31:13.766 accountant face-to-face again. 00:31:13.833 --> 00:31:15.466 Like I don't think I'm coming in with this box of 00:31:15.533 --> 00:31:17.033 papers and sitting down. 00:31:17.099 --> 00:31:20.033 I think so many more things didn't just go to video, but 00:31:20.099 --> 00:31:22.566 they're staying in video, because, frankly, as a small 00:31:22.633 --> 00:31:25.000 business, you can get a lot more done if you're just back-to-back 00:31:25.066 --> 00:31:28.133 on calls all day, whether it's one to one, like, you know, I 00:31:28.200 --> 00:31:30.033 always think accountant, therapist, all those classic 00:31:30.099 --> 00:31:33.500 examples, or one to many, like the yoga class hasn't 00:31:33.566 --> 00:31:34.299 gone away; right? 00:31:34.366 --> 00:31:35.866 People are still doing that. 00:31:35.933 --> 00:31:39.033 I think those trends are sticking, which is why we 00:31:39.099 --> 00:31:41.033 wanted to make sure that you can actually make money 00:31:41.099 --> 00:31:41.766 inside the payments. 00:31:41.833 --> 00:31:43.866 Like send that email afterwards; right? 00:31:43.933 --> 00:31:45.200 They've got limited resources. 00:31:45.266 --> 00:31:46.900 Like they don't have an admin that's, like, wait, 00:31:46.966 --> 00:31:48.099 we didn't pay that bill. 00:31:48.166 --> 00:31:50.166 So by the time they're off the call, they've already got the 00:31:50.233 --> 00:31:52.666 cash, which I think Jeff was talking about, too, like that 00:31:52.733 --> 00:31:55.466 immediacy of getting those funds is really important. 00:31:55.533 --> 00:31:56.666 >> KATE JENSEN: I love that. 00:31:56.733 --> 00:31:59.900 And as we all know, Alex Vogenthaler really loves yoga, 00:31:59.966 --> 00:32:01.633 as well, and so I'm sure he was on some of those. 00:32:01.700 --> 00:32:04.733 Tell me a little bit more. 00:32:04.799 --> 00:32:08.500 So you decided that you're a canonical Teams user. 00:32:08.566 --> 00:32:09.633 You're a yoga instructor  00:32:09.700 --> 00:32:10.566 >> BRENNA ROBINSON: Yeah. 00:32:10.633 --> 00:32:13.500 >> KATE JENSEN: doing a live stream class on Teams. 00:32:13.566 --> 00:32:15.299 Wants to get paid immediately. 00:32:15.366 --> 00:32:17.500 Once you've decided that, once you've decided to embed 00:32:17.566 --> 00:32:19.766 payments, how did you think about partnering with Stripe? 00:32:19.833 --> 00:32:22.799 And we know that you have a lot of engineers at Microsoft. 00:32:22.866 --> 00:32:23.900 >> BRENNA ROBINSON: Yeah. 00:32:23.966 --> 00:32:25.433 >> KATE JENSEN: What made you decide to partner versus build? 00:32:25.500 --> 00:32:27.400 >> BRENNA ROBINSON: Well, I think, like, any company, even 00:32:27.466 --> 00:32:30.500 someone as big as Microsoft, picking what you're going to 00:32:30.566 --> 00:32:33.633 invest and do your resources in and what you're going to partner 00:32:33.700 --> 00:32:34.833 on is incredibly important. 00:32:34.900 --> 00:32:37.900 Because we can conceivably build anything. 00:32:37.966 --> 00:32:39.233 Do we want to? 00:32:39.299 --> 00:32:41.500 Do I want to spend resources on something that already 00:32:41.566 --> 00:32:43.966 exists elsewhere that's, frankly, really good? 00:32:44.033 --> 00:32:45.000 Probably not. 00:32:45.066 --> 00:32:47.700 I mean, one of the exciting things for us here was we don't 00:32:47.766 --> 00:32:49.333 even see the payment data. 00:32:49.400 --> 00:32:51.200 Like we have nothing to do with it; right? 00:32:51.266 --> 00:32:54.299 It's transacted completely sort of out of our eyesight, which 00:32:54.366 --> 00:32:57.733 keeps us in a really clean area. 00:32:57.799 --> 00:32:59.700 We don't have to worry about all these things that you have to 00:32:59.766 --> 00:33:01.599 worry about, so we'll let you take care of that part. 00:33:01.666 --> 00:33:04.200 But it makes it something that's a real opportunity. 00:33:04.266 --> 00:33:06.900 We know the customers want it, but here we're going to, you 00:33:06.966 --> 00:33:09.599 know, try to build a whole payments platform ourselves? 00:33:09.666 --> 00:33:11.933 No, let's just be good at what we're good at and then find 00:33:12.000 --> 00:33:13.700 partners that are good at what their good at. 00:33:13.766 --> 00:33:16.799 I think the other thing in partnerships, which is more the 00:33:16.866 --> 00:33:19.799 art  you know, I was talking about the art  is we want to 00:33:19.866 --> 00:33:22.666 partner with companies that have a strong reputation 00:33:22.733 --> 00:33:24.566 in the SMB space too. 00:33:24.633 --> 00:33:28.799 So tying our brand to a brand like Stripe that we know is 00:33:28.866 --> 00:33:32.700 everywhere for SMBs also gives us that reach, that brand 00:33:32.766 --> 00:33:34.066 awareness, that affinity; right? 00:33:34.133 --> 00:33:36.166 Microsoft loves SMBs, which we do. 00:33:36.233 --> 00:33:39.000 So I think it's both you've got the product, and then we've got 00:33:39.066 --> 00:33:41.733 that kind of soft part of being tied to brands that 00:33:41.799 --> 00:33:44.066 have a lot of great reputation in the space. 00:33:44.133 --> 00:33:45.266 >> KATE JENSEN: Well, we're so excited to partner 00:33:45.333 --> 00:33:46.133 with you on this. 00:33:46.200 --> 00:33:47.400 And I know it's really early days. 00:33:47.466 --> 00:33:48.466 So you talked about the art. 00:33:48.533 --> 00:33:49.500 >> BRENNA ROBINSON: Yeah. 00:33:49.566 --> 00:33:50.500 >> KATE JENSEN: Now let's go to the science a little bit. 00:33:50.566 --> 00:33:52.733 If we're sitting here a year from now and it's gone 00:33:52.799 --> 00:33:55.433 exceptionally well, what are some things that would be true? 00:33:55.500 --> 00:33:57.099 What are you looking to measure? 00:33:57.166 --> 00:33:58.733 >> BRENNA ROBINSON: Yeah, I mean, I think, you know, 00:33:58.799 --> 00:33:59.533 measurement is interesting. 00:33:59.599 --> 00:34:00.333 You can measure anything. 00:34:00.400 --> 00:34:01.633 We try to measure full funnel. 00:34:01.700 --> 00:34:04.066 So we really just entered into preview, so we're 00:34:04.133 --> 00:34:05.700 seeing people pop in. 00:34:05.766 --> 00:34:07.366 I just want them to, like, add the plugin. 00:34:07.433 --> 00:34:08.533 I want them just to try it; right? 00:34:08.599 --> 00:34:09.699 >> KATE JENSEN: Yeah. 00:34:09.766 --> 00:34:10.833 >> BRENNA ROBINSON: And see is it working? 00:34:10.900 --> 00:34:12.033 How are people using it? 00:34:12.099 --> 00:34:14.900 Again, this is not out of our space, but it's definitely 00:34:14.966 --> 00:34:16.699 a more interesting partnership for us. 00:34:16.766 --> 00:34:19.766 We've not really explored the payment space, like, 00:34:19.833 --> 00:34:21.133 inside of our products. 00:34:21.199 --> 00:34:23.366 There's a lot for us to learn. 00:34:23.433 --> 00:34:25.099 I think first is just getting that awareness, 00:34:25.166 --> 00:34:26.033 people know it exists. 00:34:26.099 --> 00:34:27.966 A lot of people don't even know we made it. 00:34:28.033 --> 00:34:30.033 So if they don't know, they're certainly not going to try it. 00:34:30.099 --> 00:34:32.566 So definitely that top of the funnel, if you're thinking full 00:34:32.633 --> 00:34:34.866 funnel, you want to be able to transact inside of it. 00:34:34.933 --> 00:34:37.099 We want to see if this is going to catch fire. 00:34:37.166 --> 00:34:40.166 I always say, like, my job is to plant for SMB -- I'm 00:34:40.233 --> 00:34:43.366 covering a whole audience -- a lot of little seeds and 00:34:43.433 --> 00:34:45.033 see what pops up; right? 00:34:45.099 --> 00:34:46.599 What really catches fire. 00:34:46.666 --> 00:34:49.066 I like to think I know; otherwise, I hope I'm not making 00:34:49.133 --> 00:34:50.266 products that aren't any good. 00:34:50.333 --> 00:34:52.066 But, listen, they aren't always going to knock it out of the 00:34:52.133 --> 00:34:54.800 park, but what we want to do is see that fire start. 00:34:54.866 --> 00:34:57.933 And then I was joking, we got, like, a bunch of media coverage. 00:34:58.000 --> 00:34:59.766 I'm, like, well, maybe we're doubling down on 00:34:59.833 --> 00:35:00.699 payments, then; right? 00:35:00.766 --> 00:35:01.766 >> KATE JENSEN: Yeah. 00:35:01.833 --> 00:35:02.933 >> BRENNA ROBINSON: I let the buyer tell me what works. 00:35:03.000 --> 00:35:05.866 And if people are excited and they're using it, there's a lot 00:35:05.933 --> 00:35:09.433 more that we could do here if we find out that people are really 00:35:09.500 --> 00:35:12.800 into the idea of doing it inside of our products. 00:35:12.866 --> 00:35:15.500 And so in a year I'd like to know, like, is it working? 00:35:15.566 --> 00:35:16.433 Are we getting engagement? 00:35:16.500 --> 00:35:17.533 What did we miss? 00:35:17.599 --> 00:35:18.366 You always miss something. 00:35:18.433 --> 00:35:20.633 What are these use cases that we weren't ready for 00:35:20.699 --> 00:35:21.866 that we wanted to add in? 00:35:21.933 --> 00:35:25.599 And then, ultimately, I think I'd also like it to help impact 00:35:25.666 --> 00:35:28.666 our reputation engagement overall in the SMB space and be 00:35:28.733 --> 00:35:31.666 a building block for the types of partnerships we 00:35:31.733 --> 00:35:34.466 want to do I think is incredibly important to us. 00:35:34.533 --> 00:35:35.766 >> KATE JENSEN: Yeah. 00:35:35.833 --> 00:35:37.066 >> BRENNA ROBINSON: This is something I'd like to continue 00:35:37.133 --> 00:35:39.800 to replicate in different areas and/or in payments 00:35:39.866 --> 00:35:42.466 if this lights up, which we hope it does. 00:35:42.533 --> 00:35:44.066 >> KATE JENSEN: We also hope it does. 00:35:44.133 --> 00:35:45.266 And that's a great place to end it. 00:35:45.333 --> 00:35:46.900 Thank you so much for being here today. 00:35:46.966 --> 00:35:47.933 >> BRENNA ROBINSON: Thanks, Kate. 00:35:48.000 --> 00:35:50.166 >> KATE JENSEN: We'll bring Aakash back out to close us out. 00:35:50.233 --> 00:35:51.366 (Applause) 00:35:53.099 --> 00:35:54.466 >> AAKASH SAHNEY: Thank you, Kate and Brenna. 00:35:54.533 --> 00:35:56.900 It's so great to see Microsoft solving these critical payments 00:35:56.966 --> 00:35:59.966 problems for small businesses. 00:36:00.033 --> 00:36:03.433 For our final chapter today, I want to zero in on how platforms 00:36:03.500 --> 00:36:06.366 should think about evolving in the current environment. 00:36:06.433 --> 00:36:08.133 Like I mentioned earlier, the biggest challenge our 00:36:08.199 --> 00:36:10.699 customers are facing is that they feel stretched. 00:36:10.766 --> 00:36:13.433 The expectations of their customers keep rising, and 00:36:13.500 --> 00:36:15.400 the macroeconomic environment means that they need to 00:36:15.466 --> 00:36:16.900 be more focused than ever. 00:36:16.966 --> 00:36:19.500 So you can't do it all, and you can't do it all yourself. 00:36:19.566 --> 00:36:22.266 On top of that, over the past few years, many boards and 00:36:22.333 --> 00:36:24.800 investors encouraged platforms to build everything from 00:36:24.866 --> 00:36:27.466 scratch, taking on a lot of the complexity of payments 00:36:27.533 --> 00:36:31.066 internally themselves, but they're now realizing that this 00:36:31.133 --> 00:36:33.699 decision has some major pitfalls: higher fully 00:36:33.766 --> 00:36:35.933 loaded costs than they originally estimated, slower 00:36:36.000 --> 00:36:39.333 execution, and diverted attention from their teams. 00:36:39.400 --> 00:36:41.333 For platforms who went that route, it ends up 00:36:41.400 --> 00:36:44.599 being really expensive to just keep the lights on. 00:36:44.666 --> 00:36:47.466 As a result, these days our conversations with users are 00:36:47.533 --> 00:36:51.033 really frequently about doing more with less. 00:36:51.099 --> 00:36:52.866 So next we're going to discuss some of the top 00:36:52.933 --> 00:36:55.166 strategic opportunities that we see for platforms who 00:36:55.233 --> 00:36:57.433 are navigating this tension. 00:36:57.500 --> 00:36:59.266 So even if you're really experienced in this field and 00:36:59.333 --> 00:37:01.000 you've been doing this for years, it's pretty normal to 00:37:01.066 --> 00:37:02.733 wonder, you know, what should we change about 00:37:02.800 --> 00:37:04.533 our business right now. 00:37:04.599 --> 00:37:06.599 So let's get started. 00:37:06.666 --> 00:37:10.033 The first opportunity we see is don't reinvent the wheel. 00:37:10.099 --> 00:37:11.699 You can really minimize your total cost of 00:37:11.766 --> 00:37:14.633 ownership and increase your execution speed dramatically 00:37:14.699 --> 00:37:17.000 if you take advantage of out-of-the-box functionality. 00:37:17.066 --> 00:37:21.033 One of my favorite examples of this is with onboarding. 00:37:21.099 --> 00:37:23.400 Think about Jobber onboarding a landscaper or 00:37:23.466 --> 00:37:25.599 Lyft onboarding a new driver. 00:37:25.666 --> 00:37:27.800 Building payments onboarding flows for your users can 00:37:27.866 --> 00:37:29.966 take a ton of engineering and design cycles to get 00:37:30.033 --> 00:37:32.166 right, and payments onboarding is pretty complex. 00:37:32.233 --> 00:37:35.400 It's a workflow that needs to balance adhering to thousands of 00:37:35.466 --> 00:37:38.633 compliance requirements on one hand with providing a great user 00:37:38.699 --> 00:37:40.933 experience on the other. 00:37:41.000 --> 00:37:43.866 We estimate that it takes at least five months to build the 00:37:43.933 --> 00:37:46.800 different compliance programs and UIs if you want to 00:37:46.866 --> 00:37:48.933 own this entirely in-house. 00:37:49.000 --> 00:37:51.033 And you have to add more to that each time you expand to a new 00:37:51.099 --> 00:37:54.933 country or each time a regulator introduces a new KYC rule. 00:37:55.000 --> 00:37:59.000 Payments interfaces like dashboards and workflows 00:37:59.066 --> 00:38:00.233 are really similar. 00:38:00.300 --> 00:38:01.900 They look simple, but when you dig in, there's 00:38:01.966 --> 00:38:04.333 a ton of complexity lurking under the surface, and that 00:38:04.400 --> 00:38:06.599 complexity can slow you down. 00:38:06.666 --> 00:38:08.966 My favorite example of this is with disputes. 00:38:09.033 --> 00:38:11.633 Businesses have to handle credit card disputes all the time. 00:38:11.699 --> 00:38:12.733 It's complex. 00:38:12.800 --> 00:38:14.433 There are dozens of different dispute reasons. 00:38:14.500 --> 00:38:17.233 There's special evidence required for different disputes. 00:38:17.300 --> 00:38:20.699 And there's nuanced differences between the card networks. 00:38:20.766 --> 00:38:23.800 Building this really well on your own is extremely hard and 00:38:23.866 --> 00:38:27.133 requires investing in a bunch of sort of esoteric payments 00:38:27.199 --> 00:38:31.133 expertise that distracts from your users' unique problems. 00:38:31.199 --> 00:38:33.966 A theme we've heard from many of you is that all of this 00:38:34.033 --> 00:38:36.833 complexity slows down your initial go-live times and 00:38:36.900 --> 00:38:39.900 creates a greater maintenance burden than you anticipated. 00:38:39.966 --> 00:38:41.833 So building this all yourself becomes, like, really costly. 00:38:41.900 --> 00:38:45.633 To help with this and to make future updates to your 00:38:45.699 --> 00:38:48.199 onboarding and interfaces really lightweight and fast, 00:38:48.266 --> 00:38:51.300 we're investing heavily in embedded components. 00:38:51.366 --> 00:38:54.266 These are prebuilt workflows and dashboards that can be 00:38:54.333 --> 00:38:57.300 integrated into your product and customized in minutes. 00:38:57.366 --> 00:38:59.099 This means that you can delegate almost all of that 00:38:59.166 --> 00:39:01.500 complexity of onboarding, building and maintaining 00:39:01.566 --> 00:39:05.199 payments dashboards to Stripe, and that's all without 00:39:05.266 --> 00:39:09.099 sacrificing a fantastic tightly integrated user experience. 00:39:09.166 --> 00:39:10.166 Here's how they work. 00:39:10.233 --> 00:39:12.500 Step one, you use our configuration tool to style your 00:39:12.566 --> 00:39:15.266 payments list or other embedded component to match your product 00:39:15.333 --> 00:39:16.666 experience and your brand. 00:39:16.733 --> 00:39:19.833 Step two, you add about seven lines of code to your product 00:39:19.900 --> 00:39:22.833 wherever you want this UI to appear, and that's it. 00:39:22.900 --> 00:39:24.400 There's no step three. 00:39:24.466 --> 00:39:28.000 And it's a lot less work than building all of this yourself. 00:39:28.066 --> 00:39:29.933 Okay, so don't reinvent the wheel is the first sort of 00:39:30.000 --> 00:39:31.566 strategic opportunity we see. 00:39:31.633 --> 00:39:35.400 The second opportunity is to offload operational 00:39:35.466 --> 00:39:37.599 burdens wherever possible so that you can focus your 00:39:37.666 --> 00:39:39.300 time on your users. 00:39:39.366 --> 00:39:41.833 We see a lot of platforms spending an outsized amount of 00:39:41.900 --> 00:39:44.166 their time on areas where their approach isn't really 00:39:44.233 --> 00:39:46.099 unique or differentiated. 00:39:46.166 --> 00:39:48.300 For example, a big part of running a payments business 00:39:48.366 --> 00:39:51.433 relates to figuring out how you want to handle payments risk for 00:39:51.500 --> 00:39:54.366 your users on an ongoing basis. 00:39:54.433 --> 00:39:56.466 This means everything from, like, understanding your credit 00:39:56.533 --> 00:40:00.000 exposure through your users to fending off fraudulent merchants 00:40:00.066 --> 00:40:04.433 that sign up to keeping abreast of ongoing regulatory changes. 00:40:04.500 --> 00:40:06.466 This can get really complex. 00:40:06.533 --> 00:40:09.366 To be blunt, we think too many platforms decide to take 00:40:09.433 --> 00:40:10.800 this on for themselves. 00:40:10.866 --> 00:40:13.433 This means they hire a team of risk analysts and compliance 00:40:13.500 --> 00:40:15.166 specialists, and they internalize all of this 00:40:15.233 --> 00:40:18.466 complexity into their own operations; or worse, they 00:40:18.533 --> 00:40:20.433 neglect this area entirely, and they get hit with 00:40:20.500 --> 00:40:23.533 unexpected losses that blow up their P&Ls and their roadmaps 00:40:23.599 --> 00:40:25.133 for several quarters. 00:40:25.199 --> 00:40:27.466 This is expensive, and it's also really distracting. 00:40:27.533 --> 00:40:29.733 You know, unless you think risk management is a core competency 00:40:29.800 --> 00:40:32.033 you want to invest in or you have uniquely low-risk 00:40:32.099 --> 00:40:35.433 customers, the more efficient answer for most cases is 00:40:35.500 --> 00:40:37.500 to lean on Stripe to help handle these challenges. 00:40:39.066 --> 00:40:40.566 And regardless of what you choose, we're here to help, 00:40:40.633 --> 00:40:43.199 whether you want to manage merchant, credit, and fraud risk 00:40:43.266 --> 00:40:46.199 yourself or get our assistance, we're going to be providing 00:40:46.266 --> 00:40:48.199 better visibility into the status of all of 00:40:48.266 --> 00:40:49.666 your connected accounts. 00:40:49.733 --> 00:40:51.933 We call it the "Accounts to review" page, and it's right 00:40:52.000 --> 00:40:53.466 in your platform's Dashboard. 00:40:53.533 --> 00:40:55.366 Your team can get a quick understanding of what's 00:40:55.433 --> 00:40:58.333 going on with any account and take action as needed. 00:40:58.400 --> 00:41:01.033 So, for example, if your support team gets a question from one of 00:41:01.099 --> 00:41:04.933 your users asking about why payouts were paused, they can 00:41:05.000 --> 00:41:07.933 simply log into the Stripe Dashboard, check out this UI, 00:41:08.000 --> 00:41:10.800 understand what information is pending for the account, and 00:41:10.866 --> 00:41:14.633 then give the customer clear steps to resolve the issue. 00:41:14.699 --> 00:41:17.133 The overall point here is that now is a great time to evaluate 00:41:17.199 --> 00:41:19.599 your overall payments operation and make sure you're not 00:41:19.666 --> 00:41:22.500 spending too much time on the areas that aren't core to your 00:41:22.566 --> 00:41:24.566 business and your users. 00:41:26.566 --> 00:41:29.066 The last opportunity we'll talk about sounds really obvious, but 00:41:29.133 --> 00:41:31.500 we're always shocked about how many platforms miss out 00:41:31.566 --> 00:41:35.166 on this, and that's to just take the easy wins. 00:41:35.233 --> 00:41:37.766 One of the most obvious wins is with payment methods. 00:41:37.833 --> 00:41:39.933 You want to make sure that your users are surfacing the 00:41:40.000 --> 00:41:43.133 highest converting payments methods to their customers. 00:41:43.199 --> 00:41:45.233 Think about an SMB on your platform that sells really 00:41:45.300 --> 00:41:48.533 expensive furniture and then asking you to add Afterpay or 00:41:48.599 --> 00:41:50.699 Klarna to their checkout flow so that they can 00:41:50.766 --> 00:41:52.166 increase their order size. 00:41:52.233 --> 00:41:54.433 How quickly can you support them? 00:41:54.500 --> 00:41:57.866 Or consider a professional services customer who's taking 00:41:57.933 --> 00:42:00.199 on new clients in Europe and might need to get paid by 00:42:00.266 --> 00:42:01.666 European bank transfers. 00:42:01.733 --> 00:42:03.866 How quickly can you enable that? 00:42:03.933 --> 00:42:06.433 Connect now lets platforms automatically turn on payment 00:42:06.500 --> 00:42:09.133 methods for their users, so you don't have to integrate each of 00:42:09.199 --> 00:42:11.900 these payment methods each and every payment method separately 00:42:11.966 --> 00:42:15.066 one by one, and you also don't need to enable it one by one for 00:42:15.133 --> 00:42:15.900 each of your accounts. 00:42:15.966 --> 00:42:17.666 You can do it all in one place at one time. 00:42:17.733 --> 00:42:20.300 So this becomes a really low-effort way 00:42:20.366 --> 00:42:21.900 to boost your revenue. 00:42:21.966 --> 00:42:24.066 And in the keynote, we heard that businesses using our 00:42:24.133 --> 00:42:28.300 Optimized Checkout Suite saw a 10.5% average uplift. 00:42:28.366 --> 00:42:30.733 That's real revenue for you and for your customers that you can 00:42:30.800 --> 00:42:32.800 add with very little effort. 00:42:34.533 --> 00:42:37.633 Another really easy win is to offer instant payouts. 00:42:37.699 --> 00:42:41.466 82% of SMBs and 90% of gig workers report 00:42:41.533 --> 00:42:43.599 difficulty accessing cash. 00:42:43.666 --> 00:42:45.533 In a few quick steps, you can make this so 00:42:45.599 --> 00:42:48.933 much easier for them and even monetize them for yourself. 00:42:49.000 --> 00:42:52.500 Stripe offers new no-code and embeddable options to provide 00:42:52.566 --> 00:42:54.599 instant payouts to your customers, allowing them to 00:42:54.666 --> 00:42:57.900 access their funds in minutes rather than days. 00:42:57.966 --> 00:43:00.033 Platforms can also configure the fees that they want to charge 00:43:00.099 --> 00:43:02.099 for this service directly from the Dashboard. 00:43:04.566 --> 00:43:07.300 The last easy win is that we find a lot of platforms sort of 00:43:07.366 --> 00:43:09.733 underinvest in thinking about pricing and running 00:43:09.800 --> 00:43:11.766 experiments related to pricing. 00:43:11.833 --> 00:43:13.533 Pricing can make a huge difference on the success of 00:43:13.599 --> 00:43:15.800 your payments business, and there can be these really, like, 00:43:15.866 --> 00:43:17.900 counterintuitive outcomes. 00:43:17.966 --> 00:43:21.000 We've seen some users lower their payments prices and get 00:43:21.066 --> 00:43:23.000 more upgrades to their premium SaaS tiers. 00:43:23.066 --> 00:43:25.533 We've seen other users raise their payments prices 00:43:25.599 --> 00:43:27.733 with no impact on retention. 00:43:27.800 --> 00:43:30.266 So it's impossible to say exactly what will happen for 00:43:30.333 --> 00:43:33.166 your specific customers, but we highly recommend experimenting 00:43:33.233 --> 00:43:36.099 for yourself and trying it out. 00:43:36.166 --> 00:43:38.133 Here, too, we're introducing some new tools that make 00:43:38.199 --> 00:43:40.099 the implementation of any pricing strategy, whatever 00:43:40.166 --> 00:43:42.666 yours is, much, much easier. 00:43:42.733 --> 00:43:44.733 Once you've decided on a strategy or an experiment you 00:43:44.800 --> 00:43:47.099 want to run, you can now configure it directly from 00:43:47.166 --> 00:43:49.333 the Stripe Dashboard without writing any code. 00:43:49.400 --> 00:43:51.800 You simply go into the Dashboard, choose a price level, 00:43:51.866 --> 00:43:54.633 and it's automatically applied to every transaction. 00:43:54.699 --> 00:43:58.466 You can even set rich rules for more complex pricing strategies, 00:43:58.533 --> 00:44:00.766 applying different prices for different payment methods, 00:44:00.833 --> 00:44:04.000 different SaaS tiers, or different geographical regions. 00:44:04.066 --> 00:44:05.633 I was sharing this with an analyst recently, 00:44:05.699 --> 00:44:06.566 and he was floored. 00:44:06.633 --> 00:44:08.566 He said, "Wait, you mean platforms don't have to manage 00:44:08.633 --> 00:44:10.566 all of their pricing in an Excel spreadsheet anymore?" 00:44:10.633 --> 00:44:12.599 And so the answer is, like, no, not anymore. 00:44:12.666 --> 00:44:16.166 Those are some of my favorite examples of some easy wins that 00:44:16.233 --> 00:44:18.066 can solve your business problems and your customers' 00:44:18.133 --> 00:44:21.766 business problems with really very little effort. 00:44:21.833 --> 00:44:24.199 Zooming out, as you navigate the challenge of balancing 00:44:24.266 --> 00:44:28.099 your customers' expectations with macroeconomic uncertainty, 00:44:28.166 --> 00:44:29.933 we think it's the right time to examine your 00:44:30.000 --> 00:44:30.866 payments business closely. 00:44:30.933 --> 00:44:32.800 We've talked about a few opportunities to do that. 00:44:32.866 --> 00:44:35.066 You know, don't reinvent the wheel, focus on the 00:44:35.133 --> 00:44:37.466 differentiation in your business, and offload everything 00:44:37.533 --> 00:44:40.366 else, and take the easy wins. 00:44:40.433 --> 00:44:42.666 And as you've seen, we've adapted our roadmap pretty 00:44:42.733 --> 00:44:45.099 significantly to make it easy for you to take advantage of 00:44:45.166 --> 00:44:46.800 these opportunities, and we really look 00:44:46.866 --> 00:44:48.233 forward to your feedback. 00:44:48.300 --> 00:44:50.433 Okay, so to close this talk, I want to recap a couple 00:44:50.500 --> 00:44:53.033 of the high-level themes that we talked about. 00:44:53.099 --> 00:44:55.500 One, platform payments are bigger than ever, but doing 00:44:55.566 --> 00:44:58.466 platform payments right has a lot of nuance to it. 00:44:58.533 --> 00:44:59.933 We heard lessons from Jobber about how you 00:45:00.000 --> 00:45:01.833 can really nail it. 00:45:01.900 --> 00:45:04.033 Two, embedded payments opportunities are 00:45:04.099 --> 00:45:05.199 everywhere you look. 00:45:05.266 --> 00:45:06.966 Companies like Microsoft are adding payments to make their 00:45:07.033 --> 00:45:09.433 user experience better, and you should be on the lookout 00:45:09.500 --> 00:45:12.166 for platform, marketplace, and franchise dynamics in 00:45:12.233 --> 00:45:13.833 your own businesses. 00:45:13.900 --> 00:45:17.566 And, finally, we shared some guidance for how to navigate the 00:45:17.633 --> 00:45:20.466 macroeconomic uncertainty and the ever-rising customer 00:45:20.533 --> 00:45:22.500 expectations that we all face along with some 00:45:22.566 --> 00:45:24.833 concrete features that we're shipping to help. 00:45:24.900 --> 00:45:27.266 So we hope you learned something new today, and we're so excited 00:45:27.333 --> 00:45:28.500 to see what you build next. 00:45:28.566 --> 00:45:31.233 Special thanks to Jeff and Brenna for sharing their 00:45:31.300 --> 00:45:32.133 insights with us. 00:45:32.199 --> 00:45:33.199 Thank you so much. 00:45:33.266 --> 00:45:34.266 (Applause)