Remitly Webinar on Product Innovation/Stablecoins Hosted by JPMorgan Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Tien-Tsin Huang - JPMorgan Chase & Co - Analyst : So yeah, I know you'll cover a lot of this at the keynote tonight at 5. So I'm sure people will tune in for that. So this is hopefully a good buildup to that. And I know you did this session with my friend, Will, a few weeks back. So I'm trying not to be too redundant, but he did start, and I'm going to start with the same question. In the second quarter, you talked about 2Q being a defining quarter and an inflection point as it relates to product innovation. So I know you're going to give us more details, but I did want to just talk about, right, we put things in Excel and we have these quick conversations, but a lot of hard work goes into it. A lot of investments have gone into it. We've seen the headcount grow in things, and now we're seeing some of the output of that. So why now? Why is now the time to come out and talk about all this product innovation at Remitly?

Question: Tien-Tsin Huang - JPMorgan Chase & Co - Analyst : Yeah. So I think we talked about this idea that Remitly spent so much time, Matt, building that trust with the users and you're doing so well in cross-border peer-to-peer, it makes sense to extend into more financial services. And you said right, that the mission or the vision is transforming lives with trusted financial services that transcend borders. So the question I have for you is, what is your right to win as a financial services provider. We've got a lot of companies we cover that are trying to bank their user base. Why should Remitly do the same and win?

Question: Tien-Tsin Huang - JPMorgan Chase & Co - Analyst : Okay. Good. So you mentioned 8.5 million customers and the 300 million available that live outside -- work outside their home country. So let's start with 8.5 million. How banked or happily banked, maybe is a better question, are these customers today, right? So I'm trying to understand what percentage of those users could potentially use some of the products that you're going to be talking about more tonight.

Question: Tien-Tsin Huang - JPMorgan Chase & Co - Analyst : Right. So think about the outputs as an analyst and maybe Vikas, you want to chime in here. You mentioned ARPU, you mentioned engagement. How should we measure the progress and the success here in the short and mid long term? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. SEPTEMBER 09, 2025 / 3:00PM, JPM.N - Remitly Webinar on Product Innovation/Stablecoins Hosted by JPMorgan

Question: Tien-Tsin Huang - JPMorgan Chase & Co - Analyst : Okay. Got it. So just -- over that time horizon, we've gotten this question, so I'll ask it here. Can you just outline -- we're using the term guardrails here. So the guardrails around the investment in the new products that you're talking about, could we see a change in incremental margins that we've been observing over the last year or so? And should the existing R&D that you put in so far support, right, the new products that you're about to launch and will launch in the next 5, 10 years? Because we have seen headcount growth. So just curious how all of that will change or evolve? Or have we seen that in the run rate today?

Question: Tien-Tsin Huang - JPMorgan Chase & Co - Analyst : Got it. Yeah, because I know you mentioned modularize and a lot of the investments have been gone through the rigor. Over the years, you spun out a lot of different things in the past, right? So we're assuming that all that has gone in to support where we are today with some of these launches.

Question: Tien-Tsin Huang - JPMorgan Chase & Co - Analyst : Yeah. No, it's important. So I'm glad you went through that. So thank you for that. So let's talk about some of the details. I was struggling with which ones to start with, but let's do business and then talk about One and flex in the wallet, if that's okay,

Question: Tien-Tsin Huang - JPMorgan Chase & Co - Analyst : So I know a lot has been discussed around business the last couple of quarters. It's now live in the US. Maybe start with what you've learned so far, where are you doubling down? Where might you sell some things down, where are you now?

Question: Tien-Tsin Huang - JPMorgan Chase & Co - Analyst : I had a question on here, like who you're taking share from. You kind of mentioned wire transfers. So I'll ask that question together with the pricing philosophy around business. I believe it's priced similarly to the personal side. But as we think about the opportunity because it's wire transfer is a potential share donor, this question of wholesale plus versus retail minus pricing. What's your philosophy on there? Because some of the wire transfer pricing is quite high, and it's a bad experience and all that good stuff. You're going at it from a very low cost still relative to that, I believe. But what's your philosophy around pricing and solving that issue?

Question: Tien-Tsin Huang - JPMorgan Chase & Co - Analyst : So how do you find these users? You mentioned the Tony example of hearing it from one of the contractors, but how do you find these users, how do you advertise or how do people discover it?

Question: Tien-Tsin Huang - JPMorgan Chase & Co - Analyst : Okay. Good. Just on the margin side, Vikas, thinking about -- reading about it, there's a dedicated business support. I know there's some other reporting that you do that's distinct. We should probably talk about fraud as well. But tell us about the current margin for that business? And how do you see it in comparison to the consumer side or the retail side?

Question: Tien-Tsin Huang - JPMorgan Chase & Co - Analyst : And is the investment also investing in potential fraud by opening up the application funnel is taking more?

Question: Tien-Tsin Huang - JPMorgan Chase & Co - Analyst : Yeah. No, we like the approach. I mean I think what we've learned over the last few years in payments, right, B2B is really hard. We saw Western Union get rid of their B2B business and just focus on the consumer, but it does feel like you're taking a very careful and thoughtful approach to it. But as you think about SAM and TAM and a lot of this will depend on your rollout schedule for geos, how quickly can we see this expand into more territories and corridors?

Question: Tien-Tsin Huang - JPMorgan Chase & Co - Analyst : Okay. Good. Anything else in business? Or should we move on to One?

Question: Tien-Tsin Huang - JPMorgan Chase & Co - Analyst : Move on to One. Let's do it. So Remitly One, a lot of good questions I fielded from the investment community on this one, guys. Just the membership program, that you called it the foundation of a new ecosystem. So maybe elaborate on that to start? And what's the pitch to consumers to sign up and pay for membership?

Question: Tien-Tsin Huang - JPMorgan Chase & Co - Analyst : Sure, now. We're with you.

Question: Tien-Tsin Huang - JPMorgan Chase & Co - Analyst : No, that's a good case study just to comp me thinking, right? We -- we've learned a lot covering a lot of these new neobanks and fintechs, including Chime, and you appreciate the liquidity needs of everyday Americans and how they can tap into that in emergency payments and here it is so close to home, right, sending money back home with family, of course, is critically important tied to your mission. But we've definitely learned that the liquidity needs of that everyday user is real. It's still untapped and underserved. So it does seem like an opportunity. But before we talk about Flex and that part of it, I just -- I like the Amazon Prime or Walmart+ example, and I was thinking about that in financial services. So American Express, of course, has premium Platinum products and Chase has that as well. You give certain benefits, access to ecosystem, travel. Of course, that's on the high end of the spectrum. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. SEPTEMBER 09, 2025 / 3:00PM, JPM.N - Remitly Webinar on Product Innovation/Stablecoins Hosted by JPMorgan But within payments and fintech a lot of the services are more merchant funded, right? Interchange is funded by merchants and these rewards get paid back. Buy now, pay later is a transactional purchase for discretionary goods, also merchant funded. So help us compare and contrast whether it be a neobank or a fintech experience, I know it's a different use case here, but there is some habituation, I think, for, hey, I can get a loan for free or very little and then have the freedom to do what I need to do versus I'm going to pay Remitly a subscription fee for access to the same, a similar service. So help us understand how this fits or is differentiated or what problem it solves versus what a neobank is trying to do, which is I know more transactional. Can you follow my question?

Question: Tien-Tsin Huang - JPMorgan Chase & Co - Analyst : Yeah. And we learned that, right? It's hard to get fee-free checking, right? And we've observed that some of the things you're talking about accessing foreign bank accounts is not available to -- without a cost. So here, you're making it available as part of the subscription. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. SEPTEMBER 09, 2025 / 3:00PM, JPM.N - Remitly Webinar on Product Innovation/Stablecoins Hosted by JPMorgan So I think it's quite genius. So I'm curious to see how it plays out, and I'm sure we'll learn more. That's why I asked the question because we're so conditioned to learning it one way, Matt. I think we need to better understand how to unbundle all these different services and see how it might be ascribed to a user of Remitly ON. So thanks for going through that. I think you touched upon a lot of Remitly ONE. Maybe to drive it home, it's good to talk about Flex, if it makes sense to pivot to Flex. So on the -- it's not a secret. Short-term liquidity products are hot right now, at least in fintech. And so buy now, later, we include in that instant loans, spare financing, all part of that. Here are you're going after it with Sow pay later. So how does it work? Give us a little bit more on the terms and the eligibility, the limits and whatnot, just a -- just to start to ground us.

Question: Tien-Tsin Huang - JPMorgan Chase & Co - Analyst : Okay. Yes. I mean you've given us some clues, but it's similar to BNPL and Spirit, short-term liquidity. But your underwriting, you've mentioned your data advantages. What's proprietary? I mean you see a lot, but you don't necessarily see the income from a direct deposit that maybe a neobank might see, Matt. But you are trusted. They're giving you a lot of their part earned income to send money back home. So you do see quite a bit. Tell us more on what you can share on your underwriting advantage.

Question: Tien-Tsin Huang - JPMorgan Chase & Co - Analyst : Yeah. No, I think you got a lot of interesting data for sure. One more question on is everyone on the Investor side asked me to ask you, right? Will you be funding and bearing the credit risk? Will you be taking on some forward flow contracts at some point as this grows? What's the path for funding it?

Question: Tien-Tsin Huang - JPMorgan Chase & Co - Analyst : Okay. Good. Now we find one more. On the wallet, just to hit some of these questions front, I know you've covered some of it, and you'll give us more. But maybe I wanted to ask you what it is versus maybe more importantly, what it isn't because there's a lot of different wallets out there on the store value side, and a lot of them have links to debit cards and award models and things like that. So maybe start with that?

Question: Tien-Tsin Huang - JPMorgan Chase & Co - Analyst : Right. It's an important distinction. So I know you announced partnerships with Bridge and Circle Bridge has been very active in the space and giving a lot of attention. What do they bring to the table?

Question: Tien-Tsin Huang - JPMorgan Chase & Co - Analyst : And then on the circle front, are you doing any hinting with their new own blockchain a the cross-border payments initiative that they've launched? Just curious how that play into it?

Question: Tien-Tsin Huang - JPMorgan Chase & Co - Analyst : Okay. Good. I know I don't want to take up too much more of your time. This is so great. just bridging it into the Stablecoin discussion just to simplify it for us. I mean, is there real demand? You talked about USEC, I heard you and Will talk about the volatility and the depreciation of certain currencies, and that is really tough for some of these highly volatile FX nations, but tell us more about what's the real demand here for it?

Question: Tien-Tsin Huang - JPMorgan Chase & Co - Analyst : Yes. No, that definitely makes sense. I mean I feel like the craze of stablecoin has calmed down since the summer for sure. I think Will has talked about that. But the one thing I've said to investors for a while, Matt, is that you've been very smart on this subject. I mean you work with Libra from the very beginning, and that was -- I think you were one of the first to partner with them when Libra got off the ground. So you're aware. I'm sure you've learned a lot. You're talking to all these different disruptors. So this evolution to get here, what would you say is maybe underappreciated about what you've learned and why it's net positive for Remitly and not net negative, which some of the skeptics might argue? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. SEPTEMBER 09, 2025 / 3:00PM, JPM.N - Remitly Webinar on Product Innovation/Stablecoins Hosted by JPMorgan

Question: Tien-Tsin Huang - JPMorgan Chase & Co - Analyst : Good. Anything else we have on Stablecoins?

Question: Tien-Tsin Huang - JPMorgan Chase & Co - Analyst : We're almost out of time, probably over time actually. Let's make sure we hit something on Agentic AI quickly, just the cost versus revenue opportunity and how you see that examples. And if you could also just talk about WhatsApp and what might come behind that and how that's been taken so far by users, ask it all together.

Question: Tien-Tsin Huang - JPMorgan Chase & Co - Analyst : And on the WhatsApp side, just what's the latest there? Is there more potential commencement or partnerships that you see that could build from that?

Question: Tien-Tsin Huang - JPMorgan Chase & Co - Analyst : Okay. So that's on the company.

Question: Tien-Tsin Huang - JPMorgan Chase & Co - Analyst : I know we're out of time. We talked about a lot of different things. Thank you, of course, for the time. But you've said many times here in other forms, right, just getting started. Product velocity, like I said, is really important for the sector now. Can we expect a regular cadence of product updates from the company starting with this keynote tonight?

Question: Tien-Tsin Huang - JPMorgan Chase & Co - Analyst : Okay. Good. Well, thank you guys for the time. I will be there and eager to see would you unveil, but I appreciate you guys spending the time that you did.