Rezolve Ai Investor Day: RezolvePay - Naga Samineni - REZOLVE AI PLC

Naga Samnini Reviewer Reviewer's Name Morning, everyone. For those I have not yet met, I'm Naga Sama Neni, CEO of ResolvePay. I built my career starting as an engineer at Microsoft and Twitter before moving to Facebook, where I worked in the leadership of global payments. I then built and exited my own payments company. I joined Dan and the team here about six months ago. I'm really excited to show you the inside of the early stages of what we're building at ResolvePay. You have now seen almost the entirety of the customer journey that Resolve AI runs for the merchants, from helping brands get discovered to converting interest into purchases and helping drive repeat business. Every retailer wants all of these activities to end up in the exact same place, and that is checkout. And it turns out, checkout is that one part of this journey that we currently hand off to someone else today. And it also turns out it's also the part that the merchant has least control over, and has the most to lose from. And getting that right is exactly what number two on the priorities that Dan set out earlier this morning is all about, owning the payment. You see, cash was the last payment method that worked beautifully for the merchant. because a hundred dollars in sales meant a hundred in revenue. See, nothing at all was actually lost in the act of getting paid. And money landed the moment the sale was complete. And every system that was built since was built actually for somebody else. Whether it's the bank, whether it's a payment network, whether it's a shopper. And don't get me wrong, every payment method has brought about a genuine improvement for the people for whom the payment methods were designed around. But it turns out, merchant was the one who quietly ended up paying for all of them. Let's zoom in on this for a second. On what happens today when a shoppers pays by card. You see a series of intermediaries Start up and take a slice of the sale. And every slice, it turns out, is charged as a percentage of the transaction and not a percentage the profit that the merchant actually keeps. As we see, the 2.3% of the fee that we're talking about for the merchant seems small, but put in context, it's a fifth of the merchant's profits, and there is the weight. A sale that closed on a Friday afternoon doesn't hit the merchant's bank until the following Tuesday. The industry calls it the two day business standard. Because I'll, as we all know, money and computers love to take the weekend off. That's why. Sit with that for a second, because that's the part that a lot of people overlook. This is merchant's own money that they've already earned, that the customer has already spent sitting in someone else's banking account for three days. And this happens on every transaction in the entire year. Now, every CFO knows what that means for the working capital for the merchant. And here's the part that I find extraordinary. If you ask anyone in the payments industry whether this experience for the merchants can be better, they'll tell you, of course it can. But when you ask them if they're gonna fix it, they're not because you see when they take a percentage of the sale that is their entire revenue it's this classic innovators dilemma where when inefficiency becomes the business model people who are on the inside don't go out looking for the cure now before I tell you what we are building I want to straight about the field that we are entering. You see payments is actually a crowded space. A great many number of companies have raised a great deal of capital on the promise of building a better check out and the results have genuinely been mixed so far. Some of them have actually gotten parts of it right and they're still going strong today but a lot more of them even after raising enormous sums are no longer here to tell their tale. However, almost every one of those attempts started first in payments and worked backwards into understanding commerce. But we are actually coming from commerce and working forward into building payments because we have much deeper context and empathy for what commerce really wants based on our background and I think that's a meaningfully different place to start from what we're building is payments that is reinvented reinvented around a better experience and better economics for both the merchant and the shopper and we are uniquely placed to solve this problem because every single product that resolve AI sells to merchants comes with the same promise of converting a browser into a buyer this conversion is is that one single thread that stitches and runs through every part of our business. Now as you have heard from our colleagues today, turns out seven out of ten shopping carts are actually abandoned. When you break it down, extra costs as checkout accounts for about 40 percent of those abandonments. Lack of trust in storing card details for the merchants account for 19%. Being forced to create accounts costs about 18% of cart abandonment and a checkout that simply takes too long and the 17%. Now on reading this it's actually gets clear for us that what appears on the surface as a marketing problem because the customer lost interest in the product that they want to buy is actually an engineering problem. You see, because these are not the customers who lost interest about the product, they were actually interested in it, but at some point along the way they just gave up. Now think about what that means for a company like ours, because we spent the entire customer journey earning a customer's attention, sparking their interest in the products in the brand, and building their conviction around the products that they actually want to take home and in the final step when it really matters they meet a checkout and which is what we don't build today and the entire work that we put in for running this and customer journey is left exposed to the same leaking at the worst possible moment but if we control this journey end-to-end what that means is that we shape that problem entirely. Because every step is now built with one objective, instead of being handed off to someone else at the point of greater, greatest risk. And that is how it's a commerce argument before it is even a payments argument. And that's precisely why I believe we are the company to solve payments. Let me tell you what we are building. ResolvePay will be the most beautiful opinionated checkout product that is real agnostic, powered by Resolve AI's own technology. And it carries every single payment option that a customer expects to find today. Whether it's a card, whether it's Apple Pay, whether it is Google Pay, or whether it pay by bank, doesn't matter. The important part is what actually sits behind. The payment details are tokenized and are stored centrally instead of at each individual merchants and what that means for the merchants is all the benefits of saving the customers card on file without the drawbacks and the risks of doing such and what this also means for the shopper is that once they get themselves set up on one merchant in our network they arrive at the next one with the details already filled in and ready to go they don't even have to type a thing and this effect compounds every merchant who joins our network makes it better and more valuable for the every merchant that already exists and every merchant that's going to come after because of the shoppers that come in already enrolled finally because resolved pay will be vertically integrated with resolved commerce that decreases dramatically the friction between intent and customers walking home with their product. The first reason why I find this really exciting is that it directly addresses the abandonment issue that we talked about. Because the cart details are never stored at the merchants, we take back the 19% of cart abandonments and because nobody is forced to create account twice, that's 18% of an abandonment taken back and because the checkouts are now faster than before that's 17% you see three of the four largest fixable reasons why a shopper walks away from a sale are answered simply by the design of the product even before we get into engineering and optimizing the margins and the second reason why this really excite me is the economics the resolve way merchants can set a cashback rate that rewards the shopper for choosing our recommended payment method a payment method that carries lower cost of processing and lower cost to service for the motion and that reward well it directly gets applied and triggered at the checkout this is what I call a win-win the shoppers get a better deal the merchants sees their blended processing costs come down and the merchants margins improve with every shopper that converts and that's what we do now before we shift cares the last thing I want to talk about this and this is really important is that all of this sits on merchants existing system we're not asking them to switch to anything and rip and replace anything all their existing systems their existing order management systems their back ends their existing payment processor contracts They can stay intact. We work with all of them. We sit on a layer above that. I want to finish by looking forward. As you have heard from my colleagues today all morning, commerce as we know it is changing. And what that means is payment as we know it will change too. As Michelle set out this morning, agents are now transacting. Increasingly, the buyer arriving at checkout page is not a person at all it's software software that knows who you are that's acting on your behalf that carries your preferences your loyalty your payment methods your payment mandates that's the next buyer and this is not distant picture that we are chalking up in the whiteboards of San Francisco this is actually what is happening today life and it is increasingly accelerating, thanks to all the advancements that, that the market is seeing today, with Muse, OpenAI, everybody else. Now, think about what that asks of a payment system that is built for the yester years. Because a checkout that is based for a human is the wrong shape for the new buyer, which is a machine now the industry hasn't settled yet on how agents will pay there are several standards that are being proposed all the time and the industry is yet to coalesce on the one standard but whatever it will end up being we are building the layer that is one above it all we are not a button in someone else's system so we don't have to pick the winners we don t have to pick the standards that win we support them all and because shoppers details are already held securely at the network level, what that means is that the agent can now transact end-to-end without touching anything that is sensitive. There is a great deal more to come from here and I'm looking forward to sharing with that soon as we reach the market. Now I know every one of you wants to learn more about what it means with Muse and OpenAI and how does all of this this work with Resolve and Resolve Pave. I'm excited to share that with you in the next few days. And with that, I'll hand this off to James, who will walk you through Resolve Reward and Resolves Insights. Cheers.