Market Spotlight - Digital Currency Flow 2018: The Impact of Evolving Payment Channels on M&A
Welcome, to the world financial symposiums. Market, spotlight, webcast, series, today's. Conference, will start in a moment but. Wfs, is dedicated. To educating, technology. Leaders through, webcast like these and the, growth and exit strategies, conference, series Eldon. London New York Silicon. Valley and other tech and financial, centers around the world the. Speakers, and sponsors, of these live events read, like a who's who of industry, leaders to, learn more about our live events, for CEOs, owners, and investors or to, access our library, of on-demand, spotlight. Webcast, covering. Markets like IT security, health, tech gaming, and more please, visit, wfs. Dot-com. And now, let's join today's market, spotlight, webcast. Good. Morning good afternoon or good evening wherever, in the world you are joining us from I want to thank you very much for attending today's market spotlight, I also. Want to thank the world financial symposium, the, opportunity, introduced quorums top 10 disruptive, trends and to, focus on digital currency, flow I've. Been fortunate to participate in a few of their growth and Asia strategies, conferences, in the past and I highly recommend you find your way to one of their upcoming events later this fall, ice. Typically reduced myself as mother luckiest, people you will ever meet many, times in my career I've been at the right place at the right time with, the right team the, right market opportunity, the right market solution, a little, bit of capital work with and some luck to build a business that I had a successful exit from in. The early 2000s, I founded a transaction, and payment processing, company we raised 25 million dollars in venture money I eventually. Merged it with a larger company since, then I remained active, in many related technologies, I'm, excited to be hosting this, spotlight event. Our. Agenda today includes, an in-depth M&A research report from Becky Hill a panel. Discussion a few closing thoughts and time permitting Q&A, from our audience if. You are unable to get to all of the questions during the spotlight we will follow up via email, so please submit your questions throughout, the spotlight. In. January, of each year corne publishes, an annual tech, M&A and report and, share the updated top 10 technology trends, for the year the. Trends focus, on where, are the leading technology of mergers and acquisitions, taking place and where the global buyers acquiring. For, more details, on all of them you can receive a copy of the report by emailing me after the spotlight. The key to notice is the interaction, between the, trends a digital, currency flow is at the heart of composite, commerce blockchain. Has a technology component inside, focused IT services, for subject matter expertise, and data. Security is also a key aspect, baby. Will share information specifically, about digital, currency, flow. Big. Story and digital currency flow right now is house driving payment. Mega deals that Betty will be highlighting, in her report about. 20%, of payment deals last year were platform, acquisitions, by private equity which. Implies an appetite for bull time acquisitions, going forward, last. Year the Starbucks, app processed, more payments, than Apple pay as a full-featured, platform.
Mobile. Payments have shown continued, acceleration and growth - last. Year the USA, grew mobile payments by 25 percent to over 134. Billion dollars, by. The time it was significantly larger adoption, process, over nine trillion, dollars, the. Disintermediation seen. In China is that the credit card companies Visa MasterCard. And AMEX are not leveraging, the user data collected, around, mobile purchases and, the, mobile payment processors, are able to maximize better, use of proximity, marketing and long, term user purchases to, drive composite. Commerce another key, top-ten trend. The. Early 2000s, there's been extensive market. And technological, advances, expansion, of channel access and delivery as well, as AI machine. Learning and leveraging, data analytics, but, for the greatest amount of user satisfaction to, date there's. A lot farther to go our market activity, is growing, every year. Ecosystem. Continues, to expand and evolve - the. Sheer number of active market participants, is a veritable who's who in the financial services industry but. The rapidly increasing number of new market entrants leveraging. State-of-the-art, technologies, to cart their market, niche the. Online of digital payments companies, is where we are finding a large percentage of early-stage. And, venture investments, being made, a key, takeaway is that as the complexity, of payments evolves, the market opportunities, create new market entrants all the time, we, died eeeh that solve problems we'll always have a home in ecosystem. The. Startup map for Bitcoin and blockchain is exploit, is exploding, with new entrants new technologies, new, markets, new solutions, and new companies are being integrated every day. Firm. Has been involved in a number of deals recently, where the digital currency flow, trend has been an important, driver there. Are here are a few examples including. Deals in healthcare gaming, and other specific markets, or, currency flows an important component as, well, as specific payment solutions, like pay trail and credit drama you, can find more information at the quorum website under the transactions. Section, now. To Becky, hill research, analyst for the corn group to, give us an updated research report, take it away Becky. Thanks. Rob, we, start with a brief history of M&A activity, in digital currency flow since. 2013, the, number of deals impacted, by this trend hasn't fluctuated, much annually though, we did see a peak in the first half of 2016 with, a total of 99 deals, however. The total deal value spiked significantly, in the second half of last year rising. To an impressive total deal value of, 25 billion dollars for. Each half years total deal value has, an exceeded nine point four billion dollars since 2013. This. Is due to an impressive 5 mega deals that took place after July of last year. Looking. At the first half of this year the, total number of transactions, in this space is about the same as the total from the first half of last year however. The number of mega deals has more than doubled thus, doubling the median and largest deal amounts. Deals. And digital currency flow vary greatly in terms of size, so most fall between the 100 and 500 million dollar range we. Also see a notable uptick in deals under 20 million dollars which, are now on pace to double from last year and the, number of deals in the 100 to 500 million, dollar range are set to nearly triple.
Following. The trend we also monitor in chorim's monthly webcasts, mega, deals are predicted to reach their record level over the past five years as, buyers are reinforced upstream, do a.22 lack of supply, the. Topic wires in this trend are all strategic requires, proving. That the trend goes far beyond the reach of the coin, the. Bloke of targets in the space over the past five years have, been at most ten years old however. 20% of the acquisitions, in the space during the same time frame has, been of companies that are 20 years or older. Therefore. If your company fits into the digital currency flow trend it can be acquired at any point it's life time. Taking. A narrow look at just publicly traded payment, technology, companies even. And multiples are at their highest since June of last year, whereas, sales multiples have dipped slightly since April, looking. At M&A metrics the transaction, processing, deals are running similar to the payment technology, companies however. Assassin transaction, security multiples, are significantly, outpacing, their public counterparts. An. Example of one of these high valuations, is relics group which, acquired anti-fraud. Software. And SAS provider threat metric, 321. Million dollars in almost 12 times sales to improve its approach to fraud and identity risk, management. Looking. At our first mega deal PayPal. Purchased Swedish Idol for two point two billion dollars and an impressive 19. Times sales to strengthen its platform, and bring it to 11 new countries, particularly. In the Lapham region in another. Mega deal applying, the digital currency flow trend to the medical space an, oval onpickedup data. Integration, SAS provider ability, network for 1.2 billion dollars and 8.6 times sales in march this year the. Significant, friction points in medicine consumer, demand for faster payment means medical fires, will be looking for more acquisitions like, this in. Another, medical deal in February r1. RCM acquired medical billing and insurance claims, processing, services provider inter medics for 460. Million dollars and 2.4, times sales to, expand its footprint in revenue cycle space and improve its ability to integrate revenue, cycles across care settings. Looking. At another mega deals prepaid. Card provider blackhawks, network was taken private by p2, Capital Partners in Silverlake for 3.5, billion dollars, and 1.9, times sales in January, and March. Mobile parking payment solutions provider, easy group was acquired by GE firm recruitment partners to accelerate, its international, expansion, real. Estate payment company click pay with lot by real page for 218, million dollars in over 11 times sales to spend slip right into the Joey owner-occupied. Segment of real estate. Online. Fundraising, Services Platform Just Giving was acquired by cloud software, solutions, provider Blackbaud, for one hundred and twenty million dollars add, to its teamraiser and every day here at platform, mid. Last year I surveyed. Eighty nine million dollars, and one point two times sales for mobile banking and payment services provider, and monetize to. Expand its suite of technologies for, financial services, just. One month prior Bix, acquired Mumbai based payment solutions from its cash for seventy six million dollars to frame two new areas such, as credit insurance and healthcare moving. Into Australia, Victoria, based, myob, picked up electronic, payment provider pay Forbes to, develop the first to market integrated, payment and accounting solution, finally. Is the financial brands of germany-based Daimler, also, the parent company of car manufacturer, mercedes-benz, acquired. Mobile payment solution provider, pay cash to build its own electronic, payment service W Mercedes day now. Back to rob with her panel. Thanks. Becky lots of great insight and information you, should remember that the second Tuesday of each month quorum, does a webcast, with additional updates on trends valuation, metrics, and research and now.
To Begin our panel discussion I'm, joined by David post blockchain, strategy, and platform, growth leader from IBM, here, to share insight into IBM's focus, for blockchain and their market approaches, next. We have Darin clumb founder, and CEO of secured, squared a leading security company, focused on applications and blockchain, and finally, we have Greg koala director. Of M&A for full-steam a leading, company in payment, and transaction. Processing, focused, on M&A, welcome. To you all I think. Starting with you David what are some of the demands you're seeing in the marketing regard specifically, to watching and digital currency flow. Yeah. I think there's an increasing, interest, in blockchain, across industry, and I think that there's a financial service industry is, no exception to that we're, involved in a variety of different ways with the financial, services institution, you, might have seen recently we, launched a stable, coin with stellar which basically will will help entities, use digital currencies, as a mechanism of payment, we, operate, a blockchain. Network, based upon cross-border. Payment, that is a great improvement. In of our functionality, removing, money across, borders, and then, of course we're, looking at innovative ways that the health clients consume, blockchain, based services, so we recently announced, something. With CLS. Basically. An, app store called, ledger connect provides financial. Services institutions to. Distribute. Ledger technology, aka. Watching, whether, that's kyc, post, trade processing, reconciliation. Sanctions screening, collateral management there's, a lot of demand for these technologies, men and I think the market is really, looking for ways, whether, that's through a consortium, or, through more of an app marketplace, approach, to, really utilize tests, experiment. Really attempt, to figure out the waves that blockchain technology, is going to continue to shape business so I think there's interest around specific business, processes that can relate to technology but, but more SELEX it's the business model how, our organization is. Going to be able to collaborate around, shared business processes, and then the transparent, secure intractable. Audible, type of way great. David thank you so much I think the recent, announcement, was ledger connector, is going to be very significant, with regards, to the. Whole sphere, ecosystem. With regards to transactions. And processing, and very, clearly these. Settlements, across the borders and things, Darren. What do you put seeing with regards, to secure squared and Summit demands that are coming with regards to the security element.
Watch-chain. Is a very interesting, technology. Because really, the premise, behind it is is really with, security, and that immutability built, into it and that's, secure too you, know so the large enterprise. Customers that we're working with really, want to move to, a more, of a verification based, system, for identity. And watch-chain. Does a really great job of, kind, of establishing. That digital, identity, because the blockchain isn't. Just based on user name and permissions, associated. With accounts, anymore it's really about that, identity becomes the transaction. They. Can be part of the or ship of a private key and the, ownership of a digital asset so those kind of places, a new way to manage, that identity for these large corporations I, think is very, exciting for them another, thing we're seeing is a very. Trend is the tokenization, of, a physical, good so, again, many of these large enterprises, that we're working with want, to use this blockchain, technology. To be able to fight, that, physical, good with a non sensitive equivalent. Like a token so they can now go create a secure way to eliminate, fraud and counterfeiting in, their supply chains so as, you know these very large manufacturers. Like Medtronic well. How do you know if a device, was actually made for Medtronic, when you're buying it or. How do you know it's not a knockoff from China so I think, blockchain. Can solve, a lot of those problems, and I think I thought a big one we're working with a lot of banks right now and as, the, banks are trying, to figure out how to become more secure, blockchain. Is really, ideally, suited. For those banking, transactions. To eliminate fraud and have an immutable record, in any transaction. You know you hear about blockchain, more around Bitcoin, blockchain, actually. Has great uses, with our current monetary system so, I think, you, may see kind, of a hybrid approach that, banks are going to use for maybe you, know they'll do some stuff in the crypto space but. They can also apply block, changes, to their basic business process, -. Great thanks guys I think part of what you're mentioning. The tokenization of the physical goods and the transactions, there and then supply chain, I think iBM is kind, of a leader at doing that with even national, commercials, national commercials with regards to farm-to-table. On how the our ability, and track ability and confirmation. Of the goods and the tracking of it is key as well, great. With regard to transaction, payment processing, what are some of the demands and needs that you're seeing in the space sure. So, pay a full steam we're a little bit farther down, the disruption. Chain, and. Don't spend a ton of time on blockchain, or, cryptocurrencies, really. What we're trying to do is bring. Clarity. To, the relationship. Between a software, company and that. Software, company's, customers, with, regard to electronic, payments but they CH and credit card what. We see is dated, technology. Slow-moving. Large enterprises. That. Are currently partnered, with software, companies in order to process electronic. Payments, which. Leads to all sorts of problems primary. They I think it, inhibits, the software, company's ability to serve their customer. How. They want what. Are the issues there is around reporting, and, so, you know you may have a software, company that's, telling one, of its customers, that so many sales happened, in a certain day when, so many refunds, were given but, that does not marry, up with a credit. Card processing, statement, that comes in so. You're left with a, confused. Business, owner whose software you know their software is telling them one thing their, payments processors, telling them another thing and, there's really zero, transparency. In the, amount of fees that are charged, and. You, know when certain transactions. Are going to get settled and which, ones were hit with additional fees, then. It inhibits. Software. Company's ability to provide, payments, processing, as a service, working. Through those third-party vendors so. Really what we are, interested, in doing posting, really is is it is a payments. Company and, as we acquire software, businesses, we take over their payments processing, for them their own payments, facilitator, model and make, sure that the reporting, and the settlement, marries, up with the reporting, and the settlement of that. Software, company, and, we have relationships with, each software company, obviously that we acquire as opposed. To some a larger processors, that, you. Know are servicing. Tens. Of thousands, hundreds of thousands, of customers that are not responsive, to their, customers, needs and part, of your strategy for merging, acquisitions, is working, in a certain vertical industries.
Yeah. That's right really for, the core for us is it, b2b to see software, where. You know the software is provided to. A. Small, and medium business, that, wants to be able to have a smooth, interaction with. Their customers, and accepting. Online payments. An example, of a vertical market software, here would be self. Storage facility management. Here you have sometimes, relatively. Unsophisticated. With. Regards to technology owners. Of self storage, facilities. That, want to be able to offer what. Can be a complex, technological. Solution, to their customers. And, when you throw in large. Payments, processors, with data technology into that interaction. It causes, a lot of conflict so we seek, to alleviate. That conflict, to enable that software company to grow faster, because of their payments offering that, that thanks yeah, but I'm just curious in, the IBM purview, on worlds with regards to the ecosystem, of you guys are bringing out and working with and the. Whole evolution. Of smart, contracts. And the ability to assist. And move the, capital and the funds can monetization, what, are you seeing with regards to trends there as well I think, we're seeing a couple of different things in, terms of digital currency, closed and tokenization, of assets so I the, first one I already talked about which is how do you use digital, currency, to move from point A to point B across borders, or or wherever I think, another interesting aspect of this kind of in the pipeline is. What does it mean to have a utility, network, whether that be banking, or supply, chain that really provides a core, functionality, to assist a big industry group but also incorporates, a tokenization, type, of dynamic, thus far I think. Tokenization, the digital currency has primarily been the purview, of the crypto economics side of the house it hasn't really translated, that much into enterprise and my prediction is in the next 6 to 12 month you're going to see interesting, thing happens in the enterprise context. Where large. Companies, may actually hold, their own tokens, of participate in network that are based upon tokens, those, tokens may be sticks, from the mutable in other words only valuable all the Catholics is a network so, they may be floating. Somewhere maybe a combination of the two there's there's all sorts of innovative thinking, going on I think a process, of bringing tokenization, to the enterprise space it's built in its early days because of all the focus on the, crypto space so.
I Think, you're just kind of seeing the tip of the iceberg in terms of innovation. It. May start with something like providing, a digital. Representation, of physical, aspect, like was alluded to previously it. Could also involve. Spinning. Out very large marketplace, businesses, very quickly by, using the incentives. The tokenization provides, with a large enterprise participants. That have substantial transaction. Volume so this isn't necessarily confined just the financial services, but I think you're going to see over the next or years a lot of business, process, specific, networks being spun up and I think it's going to happen really quickly because those, entities, that have large amounts of transaction, volume can have a stake in the network and therefore you can much easier get liquidity, on both sides of the marketplace type business, yeah. That's very interesting David thank you in fact are the, US Federal Reserve had recently, published a report, getting. That in the United States every day there are 600, million financial, transactions. And it, ends up being about twelve point two trillion, dollars, moving. In the financial, system on a daily basis, and they've come to a conclusion of twenty to twenty-five percent of the cost of moving the capital funds, across the network will, be removed, or reduced through. Utilization, of blockchain, distributed, Ledger's and tokenization, so, I think, as you said we're at the very beginning stages of seeing that I think is going to have a huge dramatic impact in the whole financial, ecosystem and, I'm, curious if you wouldn't mind just just giving a bit more information with regards to exactly. How secured, squared is handling, and managing the. Security, around. It in just, some of the innovations, of the technology, that you have that is so unique and different you know secured to is. It secure, squared we've developed, a pretty interesting way, to look at data, and really revolving, around some, of the emerging, threats around quantum. Computing, in. Advanced supercomputing. Techniques, that pose severe. Challenges, for basically, cryptographers, as a whole so if you look at watch-chain right now everything, sits on sha-256. Encryption, and this whole idea of the, amid ability, of the blockchain is is really, sexy. And awesome for many applications, but at the end of the day we, have these emerging, threats that are coming and like. You know here's one that is very well known and we're very well understood and one where I believe our security, can really have solves a lot of problems look. At Dowell for instance and what happened with the fear 'i'm here you have a situation, where, you had a security, protocol, in a way that everything was constructed, in using aetherium without. Any really clear standards, out a very well-defined. On how to implement, security properly. For theory, and now ended, up getting fifty million dollars stolen, from them in basically. A hard fork gets created, with aetherium and now, you, kind of have two different currencies, now that are splitting, and and. I don't know what side people are choosing but you, know some want to be purist and say hey we need to the route where there's nobody controlling, anything and then others are choosing the relative we have to give these poor people their money back so these are technology, challenges, that come with any brand new emerging. Technology, and things that secure, to is very heavily focused, on so it's kind of the implementation, of the security, is creating.
These New ways to secure, the blockchain using. Our technology and, then another, big area we're focused on is the endpoint because, a lot of the hacks that you're going to start seeing happening. Around Bitcoin. And the blockchain, are, going to really be focused on the endpoint and that's you know password, hacking malware attacks Trojans, key loggers is a list that goes on and on but you, know it's really how do we cure, that endpoint better and how, do we leverage our, exciting. You know quantum resilient, technology. To, solve those problems it is also another really, big security, challenge, that were focused on an eff the 51%, hack, you, can control 51% of the nodes on a blockchain network, effectively, you can overpower other, network members and allow, them to approve, or disapprove transactions. So you, know how do we solve those types of problems so these are all the kind of different. Challenges we're looking at and not, going to be a silver bullet but these, are all solvable problems, I think problems, that, will be see at the front of the line know solving you, know you also have a very good technology. With regards to compression, and, the reduction, of energy and things that it takes to be able to put the key to network together and functional, but, you know that actually in itself is a very interesting thing because as we've been looking at how, do we build a better blockchain, one, thing is very certain, that we have to build a blockchain that doesn't require so much CPU horsepower, so you know if you look at how we're doing it today anybody, with half a brain knows how, does the scale at. The level of adoption so those are areas, of your keenly, focused on. How do we create this newer, blockchain, that doesn't require so much resource, and energy Thanks, what, are additional trends or what things I use thing with regards, to just the whole thing of processing, and more importantly the, ability, to can, people, up and to be able to get them in transactions, and get them but the level of reporting. And continuity, consistency, there what else are you saying yeah, what one of the things that a, small software company would. Often like to do but can't do is get, their customer set up with their own processing. Merchant, IDs and that's, something that is, a huge value proposition. Of the full steam platform is, that with, our pavements facilitator, model we, can allow a software. Company to go out and stand up one of its customers, through. The merchant ID process we. Take on the the workflow, and the KYC risk, there and, have a compliance, department, that takes care of that but, it's something that can.
Really, Put the ownership of, payments. Processing, back into the software company and back into the merchants hands a lot, of times they are at the will of large payments, processors, and the banks, in. Terms of when, they get paid and, how they, get paid and, then you know their success rate on charge backs but. That's, something that is very important, it is a core value proposition and, full statements to be able to give, software, companies the. Technology. And the, workflow to stand, up their customers, with their own merchants IDs in a compliant way great, thank you thank you very much, eva's any other additional, insider, or input, you'd like to share with us with regards to just where IBM is going with with blockchain I think that I've covered most of it but I would say that we have a very keen interest right, now and in trying to identify other. Organisations. That we can work with to create networks we, obviously provide, watch-chain, services, and blockchain technology, but if you believe what the analysts, say over the next 10 years about, 90%, of profit pools and in the blockchain space are going to be through network ownership so we have a strong focus and, desire to partner. With organizations to, establish networks. For. Business processor industry areas that's a big focus at the global level for us as a team right now great thank you very much I can see the huge, long term, on value they're having, the network and the complete, platform. Additional. Comments you'd like to share yeah. That was actually a really interesting thing is a sudden it kind of reminded me of something a lot of people don't realize that watch-chain, really is just a, cryptography. Based technology. And it's actually hundreds of different block chains that are all being built in all. Of these different use cases and development, efforts are really being done by a lot of different groups around, specific, you know applications. Of the technology where, I think that the challenge becomes is how do we start, applying some standards. And how do we start understanding, what's a trusted, blockchain, what's really in the dog food that we're eating when. We use blockchain, as I do have some concerns as you know the most popular blockchain. Platform, in the world etherium, is you, know came out of the russian development, community, and, you. Know not that we want to say that anything bad would come from unipolar. Russia but. You do have to wonder and gives, technologists. We have to start building models, of trust and what, do those models, really look like and how do we get people that may not be so, technically, savvy to. Understand, can, we trust whatever, it is that we're using so I think there's some interesting dilemmas. That are, going to come as we see blockchain, evolve again, I think what we're trying to do is with our approach at secure. Squared is you know let's ensure no matter what that you have security, that. Can be vetted by the entire community no matter what blockchain, and make, sure the underpinning. Of the technology. Is completely sound, and. I, know iBM has done a wonderful job of working, this process in creating standards and, so I think, you're, going to start seeing the really big boys validating. Blockchain, by by, doing these types of things but they're just there has to be some kind of a standard, that we can all live by to know what's really in the stuff we're using so, what, does this mean for M&A, well you know I think that the M&A, industry is to see a lot of activity as, we look at blockchain, and you know these big companies try to figure, it out and they have this capability they're, going to want to have the resources, to do it and then you, know we're seeing a lot of these really big global companies that will be adopting, the blockchain you know for their various supply, chains and etc.
They Just don't have the developers, or the technologists, so they're going to go on and try to acquire that by acquiring, the companies that are there doing it so I think, early on you're going to see big. Companies, acquiring, you know these really intelligent, blockchain. Technologists. And and, developing, the technology, and integrating, and it is their companies and then. Blockchain. Grows and grows I think, that will, be a lot of M&A activity, and a land grab to acquire that early talent and then kind. Of a second wave of blockchain. To, me will be really those, successful, companies, that are grown from blockchain, that are you, know producing revenue who have customers, they actually have a lot of business, models and you're. Going to see those companies. Or. Going. Public etc. So I think there's kind of those two phases the early phase which is you know acquiring, the talent so that's where you'll see a little activity and then I think the second phase is big, companies, that have been grown out of blockchain, they get acquired or sold, or because, those companies want to get liquidity, okay thank you thank you very much and quite an additional input or comments, you have regards, to payment, processing, and transactions, per my end of the disruption, chain, which is still using traditional credit, card we're. Still seeing a lot of people using, chips, and, swipes, and, card-not-present, transactions. And all these technologies. And with blockchain, and aetherium, are rising, quickly I do think it's going to be a long time before it makes, its way down to you. Know your individual, customer, in a third-tier City you're trying to pay for their self, storage facility but, we know it's coming and we just you know want to spend time thinking about, how, to make kind of the existing, transaction, infrastructure. More, smooth and more secure great. Right, thank you very much your time David. Aaron, and Greg I appreciate your guys's and input here of Geisel information, and thanks. Again thank, you Thank You Robin. Incubate. Wide-ranging. Perspectives, and MOUs and some closing thoughts. Digital. Currency flow will continue as a major disruptive, trend for 2018 there's, been a trend for a few years and, will continue to be based on the increased levels of investment dollars, in M&A activity, in the space, the. Acquirers are internationally, diverse, financial strategic, platforms, and bulletins, the theme from decades report increased, mega deals and increased number of transactions, taking place, Bob, Kane is evolving, growing we're significant, amounts of investment capital is continuing, to flow panel. Shared some great insights as to the evolution, of the trends and timing, for expansion, of vertical. Industry, utilization. The. Reduction of friction the ease of movement and security, are critical, expect. The pace to increase, as big data is leveraged into better capital, management and even peer-to-peer money transmissions. Grow. Mobile. In North America and Europe has a lot of catching up to do, to be on par with the Chinese market, and it, is happening stay, attuned to it, validation. Is happening, not being in the market means your competition, may get acquired increased. Vertically, oriented acquisitions. Is an area of increased activity. Now. It appears that we have gone a little bit beyond our. Time pain timetable, here let's, see if we have some chance maybe put, in a question or so oh. I. Guess we're out of time here, what. The end of Q&A let's, go to our close. We. Hope you enjoyed today's online, symposium. If you, have any questions, not answered, please submit them to info, at wfs. Comm, we. Look forward to seeing you at one of our upcoming live, events in a city near you to. Register for these live events view upcoming webcast, topics or hear, rebroadcast.
Of This or other markets, spotlight, events please, go to wfs. Comm, thank. You for attending today's webcast.