Kaspi.kz AO (KSPI) 2023 Q4 法說會逐字稿

Hello, everyone, and welcome to the Kaspi.kz 4Q FY '23 Financial Results Conference Call, and thank you for standing by. My name is Daisy, and I'll be your operator today. (Operator Instructions)

I would now like to hand the call over to your host, David Ferguson from Kaspi, to begin. So David, please go ahead.

Hey. Hi, everybody. Thank you, Daisy. So welcome to our full year 2023 results call. As usual, full team are on the call, we've got Mikheil Lomtadze, Tengiz Mosidze and Yuri Didenko. I'm David Ferguson from Kaspi. We'll do the usual format, Mikheil will run you through the strategic update. I'll take some of the financial slides, and then we'll open the call up to Q&A, and the whole team is available for your questions.

So on that note, I'll pass the call over to Mikheil. Mikheil, over to you.

Hello, everyone. So it's our first call since we lasted -- listed on NASDAQ. So it's exciting to report our 2023 and 4Q numbers and some of the strategic updates from me and some of the priorities, which we're working on. So we can go through the presentation.

I mean, first of all, our main goal really to list on NASDAQ was also to achieve the high liquidity. So as you can see from this slide, the average daily volumes are 12x of London Stock Exchange. So we believe that's great for the company and its shareholders. And as we made an announcement also that we'll be approaching to the list from London Stock Exchange to consolidated liquidity.

Our mission to remind everyone, I think that's really important for us. Our entire team is to develop the products, which are highly relevant. They are world-class mobile services, high quality but also innovate in order to improve people's lives, and we innovate through 2 sides of our sort of target customer that would be, on the one hand, would be the merchant and on the other hand, it would be a consumer and the merchant is the Kaspi Pay mobile app and the consumer is Kaspi.kz.

And both mobile apps are the Super Apps, what we call them. And our definition of the Super App is all these different services, which are in a single mobile application and those services are highly diverse and integrated around the regular needs of the consumers and the merchants.

So if we go to look into some of the services that we have in our apps, I'm not going to go through them, but I think as you might appreciate, very few. So companies have had such a range of the services, for both consumer and the merchant. So on the one hand, we have consumer Super App, where we are serving 14 million monthly users. And here, we have everything from e-Commerce and Grocery to Travel and FinTech financial services and Buy Now Pay Later or General Purpose Loan.

The QR, which is the backbone of our proprietary payment network. So pretty much everything around shopping and the payments and moving money between the users on the one hand of the value chain for a consumer. And on the other hand, we have the services where the merchants can actually both connect to the Marketplace, but also brand advertising campaigns, manage the delivery, access the merchant finance fully online, have a business account for their business.

And those are the services which we are developing -- we have been developing for merchants for the last several years, and we are kind of in the initial stage actually, of the wave of innovations for the merchants.

So on the one hand, you have everything around the daily needs and the regular needs of the consumer. And then on the other hand of our value chain, you have merchants that are actually selling the items to those consumers, who are accepting the payments from those consumers. And those 2 Super Apps are not separate from each other. So basically, what that means they're actually connected through a different range of the services. David, next slide, please.

So here, what you have connected through the proprietary payment network, and that's really enables the merchants to accept the payments and the consumers to pay, and the QR is the foundation for that proprietary payment network, and we just move money between the consumers and merchants and also between the merchants themselves and between the consumers themselves.

The Marketplace enables -- if the payment enables to accept the payments or pay, then Marketplace enables the merchants to sell their goods and items and services and consumers to actually buy those services and the goods.

Then we have the logistics platform, which also connects, again, merchants can onboard to our platform through their Kaspi Pay functionalities, and then consumers have the variety of the logistic, sort of delivery options from Postomats, which is the automated personal machine, sort of walker functionality into door delivery.

And then advertising, which we are also scaling, and I will talk a bit about these services later. It's actually an ability for the merchants to advertise store services to reach the right buyers at the right time with the right offer, and that's a very nice functionality, which also is useful for the consumers because it's highly personalized, but also for the merchants to increase their sales.

So those 2 apps are connected through this, sort of what we would call 4 platforms, the payments network marketplace platform, logistics, delivery and advertising services. And they're seamlessly working between them.

Our priority historically has been always to drive the engagement, to drive the transactions. And as you can see, just a reminder, we are one of the highest engaged app compared to some other global apps, which you might know. So 65% is actually the share of the monthly users, which visits our app daily. So 65 people out of 100 monthly visitors would come -- 65 would come daily to our app, and that's really the result of all these different services around regular needs of the consumer, which are in a single mobile application. And that's probably one of the -- also most important metrics, just to underline how relevant our services are.

And as we're continuously adding the new services, the new verticals, enter the new businesses, if you look at our business, we have been constantly innovating, we drive the transactions. And transactions are important, just because that is actually our ability to deliver the value to the merchant and the consumer because transaction is all about buying something, paying for something. And as you can see on the GMV side of things, we have grown very nicely last year, 38%. And we've grown also nicely on the payment transactions, 38% as well. So we processed 4.2 billion payments last year and almost 165 million purchase transactions.

And at the same time, as we sort of continue driving all those services and they grow individually, they contribute to the higher sort of transactional engagement for the consumers. As you can see now, we are doing 71 monthly transactions per active consumer. So that's up 17% from 60 transactions a month per consumer in 2022. And that just basically tells you that consumers are transacting through our platforms, 2 and more times a day, and that's really a remarkable number.

And again, the transactions are important because this is how we monetize directly through the value of the acquired fees, the seller fees and now advertising and delivery, but also indirect because this type of engagement really enables us to personalize highly the consumer experience and make sure that our business is constantly improving -- shows improving efficiency and the growth.

In terms of the financials, so we're pretty much -- we did the guidance on a 6-month before going into the U.S. listing route. And as you -- going back, basically, would pretty much exceeded every single guidance that we had in the 6-month. The numbers on the financial performance are strong. Our revenue increased 51% to reach $4.2 billion equivalent of KZT 1.9 trillion in '23. Net income grew 44%, so to $1.9 billion. And then the share -- the earnings per share have grown to $9.6 per share, which is 45% growth.

And we are also happy to announce that there will be a dividend proposed to the -- subject to the shareholder approval for the 4Q of '23 of about KZT 8.50 per share dividend payment.

As we continue growing different services, the payment and marketplace are the fastest growth. So here, we're also happy to report that we are sort of becoming the increasingly diversified business, very unique in its nature, but also all these different revenue sources and different net profit sources, which we constantly create by entering the new verticals.

So as you can see, 66% of our net income in '23 now comes from the payments in the marketplace, and those are the businesses which grow the fastest. And actually, they are front end of the consumer relationship, and they will continue growing faster than the Fintech, and will be taking increasing share of our bottom line and also in '23, '24 and beyond.

Business cohorts. So we show cohorts in our annual numbers. So that basically is another indication of our growth. So you can see that we have been growing nicely. Our cohorts are showing a very nice sort of similar growth year-over-year, and 62% of our consumer base comes from the 4 recent years. So those consumers will continue transacting also in the future.

And again, you can see the years, we're sort of the 5 years consumers transacting, we increased the TPV per consumer, 12x. And if you look at pretty much every cohort, they are behaving in a very similar way. So which means there is more opportunity to do sort of volumes of the business around the consumer needs. And yes, and we continue adding the more reasons for consumers to pay for.

Another cohort is for our Marketplace. So here, you see the same strong growth. 50% of our consumers are coming from the last 4 years. And then the Marketplace continues growing very nicely. We are probably one of the few Marketplace platforms, which have continuously grew through -- after the COVID environment. And that's really the reason behind that is just because we continuously enter the new verticals.

We've started, if you remember, Travel several years ago and when there's Grocery, and we constantly increase the assortment that is available for consumers to buy. So all of that really contributes sort of more reasons for consumers to shop and then all the added value services like delivery or advertising, they're also helping and driving the growth because they're convenient for consumers and they're increasing sales of the merchants.

This is the slide about the penetration of some of our existing services that we have. So as you can see, we have services which are sort of lower penetrated, especially on the Marketplace side of things. And again, that's pretty natural, right? The consumer -- the step #1 for consumer to onboard is to actually pay, and they pay through our payment network and the QR transactions and then after payment, what comes is actually they can buy things and they can buy things which are e-commerce or the travel or the grocery, and all of that is really helping the merchants to first accept the payments, then they are listing their items, and we're helping with the delivery and other services to increase their sales.

So that's a natural evolution of the consumer journey and some of the lower-penetrated services that would be growing much faster than everything else would be on the penetrated ones like grocery or e-commerce, for example, the travel. So all those services have a very good potential for the growth. And then some of the new services, which we have been scaling and launched like online car finance, for example, which we're scaling as we speak, and that would be the -- also the foundation for the car marketplace, which we intend to create.

So all of those services which you have now basically, some of them are -- will continue delivering assured growth just because they are underpenetrated, but even the penetrated services that we have are growing fast like QR payments, as you can see. TPV has grew 43%.

On the Merchant Services, it's kind of another side of the value chain, right? So -- but pretty much the same. So the merchants are homeboarding for the payments first and then they are moving to the commerce and the marketplace and listing their items that we're selling with the delivery and then they connect delivery and advertising.

So here again, you can see that e-commerce, delivery advertising which delivered an advertising sort of first, suit of the value-added services for the merchants. They will be growing nicely, contributing to the revenue growth and the take rate. I will speak about it in more details further. And then the merchant and micro business finance, that's really a good opportunity for us underpenetrated on the market.

The product is fully online, merchants love it. And as we continue providing financing for merchants, therefore, they are developing and growing and as they grow, their fuel grow for our marketplace and the payments and so on and so forth. So there are a lot of network effects between different services in our merchant services -- existing services. And then we have a pipeline for the new app.

A bit about the grocery, just to -- one of the latest sort of services which we have launched, which will provide significant growth opportunity for us. So the market is an estimated about 14 billion double-digit growth market. We are in the weekly purchase, that is why we have sort of 11,000 SKUs and average ticket around $25 -- sorry, $29. And then the delivery is sort of same-day delivery. It's largely free of the basket, above KZT 5,000.

So -- and then delivery speed is pretty much the same delivery, and we're delivering the orders from the one central location, which actually carries those 11,000 SKUs. So we have been showing a very strong growth -- is the grocery business itself. One of the -- when you look on the screens, you can actually see how the whole value chain is shaping up. So it's fully mobile. You can select everyday items from 11,000 SKUs. It's in size, it's $29 average order size, 99% is delivery for free. You can actually select the time when it's convenient for you to get the delivery.

And then because we're focused on the quality of the service, especially in the grocery because that's a very repetitive shopping experience, you really want to make sure that you constantly deliver high quality. So 92% of consumers rate service is excellent, which is extremely important because again, consumers shop weekly, right? So you want to make sure that you -- your experience is high quality, experience is constant, and this is how you make it profitable. You're not losing customers, and you don't need to spend money on the marketing to bring the customers back, which could have been disappointed somewhere in the process of shopping with you. So that's a simple overview of the shopping process with us.

So delivered the very high growth in '23. We grew 3.9x and around 0.5 million consumers shopped with us in '23, and the average ticket grew slightly during the year, $29 now. And then we've enabled 5.2 million purchases in '23, which is 3.3x growth.

There has been a lot of discussion about very few markets where this business has been profitable. So I think we just would like to put this discussion to bet really. We told you last year that we would be focused on execution, delivering very consistent experience that results in profitability and efficiency. So this is the case study for Almaty. This is where we launched this service in -- last year.

And as you can see, in just 12 months, we are now -- we grew the revenue 154%. In the fourth Q, we achieved net income margin of 6%. Now fourth Q is a good quarter for any retail, right? Because it's sort of New Year, Christmas shopping. But still, we were already profitable in the third Q. We were profitable in the second Q as I've reported earlier in the mid of last year. So that's basically is an extraordinary achievement by itself.

And then in the fourth Q, we processed 1 million payments in the -- 1 million payment orders, sorry, in the fourth Q. And we served 10% of the population. So around 218,000 consumers made the purchase with -- in Almaty with our e-grocery proposition.

So we're very excited about this business. And we're scaling now in Almaty and Astana, which are 2 largest cities, and we will be entering the third largest city, also during the year. So those would be almost half of the total retail trade in the country. And yes, we're confident and comfortable that we can grow efficiently this business, deliver outstanding consumer experience, which actually results in the efficiency and profitability for us.

Tours, another example of our innovation last year. So we launched Kaspi Tours vacation packages marketplace, basically end of 2022, and we're scaling through 2023. So now what we have is full functioning marketplace. So you can search vacation. The 71% of all destinations, the most popular ones are actually Turkey, Emirates and Egypt. Then you can select the hotel. We have about 6,000 offers of vacation packages in our app. You can read through all the details.

And again, this is very important to keep in mind, that this is a complicated user experience. So you want to make sure that you present the information fairly, the consumers are happy. They make the decision right, but you can also connect to the operators, which are on the ground, which, once you arrive to airport, you will be greeted and meet and they will check you in the hotel.

So -- and the good thing about this business is that it's in excess of 2,000 average ticket, which is very meaningful for household budget, but also very good for us as an extension for airline and railway tickets. And then it's fully integrated with our payments and fintech platforms so you can seamlessly pay. And yes, again, the consumer experience is extremely important, especially the family vacation. And almost 90% of consumers rate the service as excellent.

So we have been scaling this last year. So happy to report that it has been growing very nicely. So we grew during the year 185%, but what is actually important -- and we achieved 5% of the GMV of the travel business in the 4Q. So we're just sort of starting, but already quite a meaningful contribution. But what is important is also the take rate, right? The take rate of this service on average has been around 8.7%. And that basically is the take rate enhancing business for us. But also, again, it's a very, very natural expansion for the travel value proposition for our consumers. We started with airlines, if you remember, then we joined the train, and now we moved into the vacation packages. So really excited about this business. We continue growing this year.

Postomats, that's another innovation which we have built during the last couple of years. Now we are almost 6,000, which was our target, if you remember. We are targeting this year 7,000 by end of 2024. We largely build the network. So the network of automated personal machines now is the largest last mile network for e-commerce in the country. We grew 78% the number of postomats and almost 40% of all the deliveries are now done through the lockers, Kaspi Postomats.

And then again, just to remind you, right, the economics of it as -- are quite simple. Instead of delivering 70 parcels to individual apartments or the houses with the success ratio actually is not -- it's -- you can have a person who's not there, consumer needs to talk to the courier for comfortable timing arrangement and so on and so forth. So it's not really that convenient as the Postomats where you can actually go anytime you want. And consumers love this experience, we're scaling it. And that is a very important source of our competitive advantage, but also it's important backbone now for our Smart Logistics platform, which we're developing.

So if you look at the value chain of our logistics platform, we have taken the view is that in order to deliver the parcels to consumers from merchants, you don't really have to own that many assets and really employ your shelf, delivery people, almost the same way like you don't really need to own the taxi and employ the taxi driver in order to provide the riding services. So this -- we took the view that we are building the platform, which manages the entire network, that it gets all the people and the entities participating in the value chain actually connect.

So we have some of the -- we have technology, which enables the whole process management. We have labeling, which is basically the entire same label sort of through the process, which is kind of extremely important for the efficiency. And then we have a technology, which is the machine learning, AI-driven technology in the middle, which basically makes sure that the routes are selected in the most efficient way. And then we have front end of relationship with the couriers, where we have app which actually manages the courier experience.

So all of that really has been providing a very strong result. So we have grown 130% in orders. 88% of those orders are free, and we deliver over half of those orders in less than 2 days. And again, this is probably the largest technology platform for delivery in the region, and we are enabling this without actually owning huge assets or employing directly delivery people, but we create a lot of jobs.

So the infrastructure itself, if we go to the next slide, is actually quite impressive. So we serve around 60,000 merchants, almost 6,000 postomats we have across the country. We provide the platform and technology for almost around 2,500 couriers. We have delivery stations in the cities. We have the pickup points for the merchants. So the merchants also can deliver their items, consumers can pick up. So we have (inaudible) companies like airlines and trucking companies.

So the whole value chain we manage is actually quite massive of 156 cities we deliver, and the country size is huge, right? It's -- and we're still making this efficiently and continuously fueling our marketplace profitability. So just -- yes, we're excited and we will continue developing that technology in order to enable even more orders delivered as our marketplace continues to grow in e-commerce specifically, which grew very nicely last year and continuous growth this year.

As we continue thinking about the merchants, we are also delivering the -- what we call sort of added value services for merchants. So this is an example of advertising, which we have been carefully designing so we deliver value for merchants. Merchants actually get the value in the sales increase at a reasonable marketing costs. So merchants can actually -- this is auction based, right? So it's almost like Google Ads or Amazon Ads, very similar sort of functionality by nature.

Merchants can launch the campaign, Merchants can manage the campaign, select the kind of -- list the items which they want to advertise. They have analytics, which they can decide on the efficiency of the advertising. And we have been scaling this quite carefully again, just to make sure that the merchants get the value for it, for the marketing money they spend. And, I'm happy to report that the growth has been very nice.

David, can I have the next slide, please. So growth has been very nice. So as you can see on the advertising and the delivery, we have grown almost 3x year-over-year. So 2.7x growth on value-added services. Another angle to look at is take rate. So take rate is 1.4% additional take rate to seller fees from delivery, 0.5% take rate to advertising. So added value services now contribute 1.9% of the take rate on e-commerce. And yes, and we're just really at the initial stage of the monetizing value-added services and driving the growth. And those are just the 2 examples of those on top of the B2B payments.

The B2B payments now is becoming a meaningful contributor to our business and the bottom line. So as you can see that we have grown B2B to 2.1x in '23, now 2.4 billion worth of transactions and then almost 25 million transactions processed in '23. And again, this business is enabling the transaction when guys like Coca-Cola or Pepsi, Nestle, they are delivering their sort of packages items to the convenience store, we're settling the invoices seamlessly between this convenience store and the brand or its distributor or its wholesaler.

So that is extremely powerful business because we delivered a lot of value. We make this transaction seamless, like almost like B2B payments for businesses. And that is our first service we launched on the B2B side of things. It still continues growing very nicely, but if you take -- if you combine together the payments and now we think we're scaling advertising and delivery, all those services for B2B would be also added value services. And B2B services will be the first range of innovation from us. But they have delivered already a very nice growth and that contributed to the bottom line in 2023.

As we got focused on the classifieds. And I mentioned to you last year that probably buying the car is one of the most important sort of household family decisions after buying the real estate. So we like this fact that now we can -- we're thinking about actually organizing the experience around that important household decisions. So we are building the car marketplace where we enable the transaction, which is the dream for any classified, right?

Can you get to the transaction actually from just advertising. And here is an example of we're getting this transaction enabled through our seamless online car loan financing. We'll leverage our fintech, again, scaling very nicely. So you can actually search the car, you can select the car and you can immediately get approved like -- which is an important functionality and our competitive advantage that we can actually approve seamlessly in seconds high-quality financing.

And then you can pay all the fees that you need to pay around the car and its registration for our government, the govtech platform, government services, and then you can pick up the car. So that's the process, which is very seamless, high-quality and yes, so we are scaling now. The intention is to build the car marketplace. We're also piloting 1P. Car marketplace with very promising results. And yes, I will just take the opportunity to talk about it later in the year, but really excited about building the car marketplace and actually different services around the cars that household can have.

Yes, to you, David, now.

Great. Thank you, Mikheil. So moving on to the financial performance of the business, starting with the payments platform. So firstly, volumes. Front payments platform, fundamentally, is the driver of engagement and competitive advantage in the business. What you see here is 12.9 million consumers, up 14% year-on-year, 581,000 merchants. But as Mikheil talked about, the focus has not been growth in users, it's been growth using that large engaged user base to drive transaction activity. And here, you see very, very solid volume trends, up 30% in the fourth quarter or 38% for the year.

Going forward, we've referenced to the cohort analysis you saw earlier. This growth just remains a function of us adding more opportunities for consumers and merchants to transact more payment functionality.

Moving on to monetization. TPV is the measure of monetization. You should keep in mind that inflation did moderate materially over the course of the year and as a take rate business, both payments and marketplace are impacted by that. But irrespective, all key payment products continue to report very, very strong monetization trends, so that's Kaspi Pay, merchant and consumer transactions, B2B payments and bill payments. And this is despite the fact that they are our most penetrated products.

The other takeaway from this slide is that whilst take rate was stable over the course of the year, it did move up in the fourth quarter to 1.3% from 1.2%. That is a result of higher margin bill payments, and that will remain a theme in 2024.

In terms of mix, what you see here is that B2B payments is now 4% of TPV. It was 3% this time last year. So that is our fastest-growing payment product. But still early days. This year, the focus is still on driving transaction volumes between merchants and our suppliers. But over time, this will open up more opportunities for more merchant or more vertical-specific products and services, both within payments and across the other platforms.

Turning to revenue profitability, with take rate moving up in the fourth quarter. Revenue growth of 33% is ahead of volume growth of 30%. And for the year, revenue growth of 44% is slightly ahead of volume growth. The usual takeaway from this slide, though, is that payments profitability or operational gearing remains as strong as it ever has been.

Our proprietary network and the elimination of third-party costs, tighter cost control and operational gearing, again, resulted in profitability reaching all-time high levels with -- for the year net income of 55% versus revenue of 44%. Looking forward, we expect payment platform to continue to benefit as existing consumers spend more with us. Our leading market position in deposits, local currency deposits will also be helpful in that regard. We'll keep adding more opportunities for both merchants and consumers to transact. B2B expands the addressable market further, and we'll stay disciplined on costs going forward, keeping the operational gearing in tact.

Moving on to Marketplace. So just as with payments, the focus in Marketplace is on growing transaction levels. And here too, you see very solid results, transaction levels of 26% in the fourth quarter. You should keep in mind that there cannot be some variability on a quarter-on-quarter basis linked to the timing of different promotional campaigns, with a very healthy number, up 38% for the year. And whilst not the focus, the growth in the number of marketplace consumers up 18% to 7.1 million. That's remained strong and consistent throughout the year, and there's clearly more to go for in that regard.

Moving to marketplace GMV. GMV growth is ahead of the volume growth. But again, the real take away here is the increase in take rate, 9.2% for the year versus 8.2% this time last year. So that's a function of sort of 2 things playing out. E-commerce is growing faster than m-commerce and e-commerce is higher take rate. E-commerce, in addition, is benefiting from value-added services, primarily advertising and delivery that Mikheil talked about. Going forward, you can expect more of the same as merchants migrate from payments and m-commerce to e-commerce.

And if marketplace with the standout platform, within marketplace, e-commerce deliver the standout results. So here, very clearly, you see that strong volume growth coming through, with volumes of 77% in the fourth quarter, of 122% year-on-year for the full year. GMV growth is below volume growth, and that reflects the addition of volume from lower ticket sales items, primarily grocery. And on that, you see the grocery or 1P is now 4% of marketplace of e-commerce GMV, which is a good result within a relatively short period of time. The take rate improvement is most pronounced for e-commerce, moving up to 11% from 9.4% for the full year, driven by value-added services and delivery.

Whilst going forward there is and will be a migration to e-commerce, as the least penetrated of the core marketplace products. M-commerce still continues to report very, very robust growth, with m-commerce GMV, up 18% year-on-year ahead of volume growth. Here also, take rate expansion for the year, moving up to 8.6% from 8.2%, a function of successful promotional activity over the course of the year.

And then moving to Kaspi Travel, like e-commerce, a very, very strong result for the year. All key elements, planes, rail and tours playing their part, but as Mikheil talked about, tours in particular, have gone from 0% GMV to around 5% in less than 12 months. So one, tours are GMV additive and two, tours are also take rate additive, 8.7% take rate on tours. That's the driver of that increase in take rate for the year to 4.3% from 3.8%. And clearly, here, it's still early days in terms of the rollout of that product and more to go for in 2024.

So what does this mean for marketplace financials? With revenue -- with take rate moving up, revenue growth is in excess of GMV growth, up 87% year-on-year for the full year, boosted also by grocery. The inclusion of grocery in revenue growth does result in net income growing at a slower rate, but net income growth of 63% is still a very, very strong result.

Going forward from Marketplace, we will continue to add new shopping categories to drive transactions per consumer. With regard to e-commerce specifically, e-commerce in 2022 still only accounted for 8% of retail and so is underpenetrated and a fast-growing structural growth opportunity. M-commerce will benefit as services, again take share within the economy from a low base and in the contact case of e-grocery, it's still very much early days, within autos marketplace also likely to become more meaningful over the medium term and autos is a market which is offline right for digital disruption. And on top of all these, you'll have advertising, marketing services and delivery all continuing to play their part as well.

Moving on to the Fintech platform. We said that really the focus last year was on growing the deposit side of the business. And I think the numbers are pretty clear. Here, growth in deposit consumers, up 27% year-on-year versus growth in fintech or loan consumers, up 12% year-on-year.

What you also saw -- the context of a stable economic backdrop is that lending origination remains at very, very healthy levels, up 36% year-on-year in the fourth quarter, up 47% for the full year. Growth in deposit customers is indicative of a strong consumer environment. Portfolio conversion of 2.2x is indicative of a strong consumer environment as consumers borrow, we pay quickly.

Growth is being driven by Buy Now Pay Later, our most important merchant -- our most important fintech product. But increasingly, merchant financing, which is our fastest-growing lending product, is now on a level of decent scale of 15% of origination, where it continue to make a big difference. So we see both merchant financing and car financing as being structurally underpenetrated in Kazakhstan, expect both of these integrated lending products to move up as marketplace continues to evolve.

A similar message really on this slide. Deposit growth for the year, up 43% ahead of loan portfolio growth, up 32%. A small reduction in loan-to-deposit ratio year-on-year. But ultimately, we have good potential this deposit base to drive more payment transactions under to scale up landing originations further over the medium term.

Yields moved down slightly year-on-year, and that is a reflection of Buy Now Pay Later and merchant financing growing their share within the mix, but is consistent with everything we've talked about previously.

Locating risk metrics are healthy trends across the board. So that's both credit origination and credit collection, and that ultimately translates into a 2% cost of risk, stable year-on-year and consistent, again, with the trends that we've talked about throughout the year.

NPL moved down year-on-year to 5.5%. There can't be here 2 seasonality in the quarterly numbers. But overall, going forward, we'd expect the NPLs to stay at broadly around current levels.

So looking at our fintech financials. The combination of decent TFV growth, normalized origination really over the last 18 months is translating into good revenue growth, albeit with some slight yield reduction.

Growth in the deposit base, the increase in the cost of the funding does have an impact on net income, net income growth of 23% versus revenue growth of 38%. Over the medium term, assuming rates fall, this should be positive for net income growth again. And as we've mentioned earlier, that in large deposit base is fundamentally a competitive advantage.

So going forward for Fintech, consumer lending remains structurally underpenetrated, as does merchant finance in back to a greater extent. And as the leader in local currency deposits were well positioned to benefit from the structural growth in fintech products.

Consolidated performance for the year, I mean I won't sort of repeat anything that I said previously, I think the simple point to take away here is these numbers exceed the guidance we provided at the H1 stage prior to going into the U.S. SEC process and materially exceed the guidance we start to 2023 with this time 12 months ago.

So looking to 2024 and the guidance for this year, we are simplifying our approach. We will not just guide on revenue and net income. This is more consistent with our U.S. peer group. The individual KPI components that make up revenue and net income, we will continue to disclose in the usual way. It's just that the guidance will ultimately reflect the end results.

Running through these, just as this year, Marketplace is expected to deliver the strongest performance. So again, that trend of merchants moving from payments to m-commerce and from m-commerce to e-commerce, e-commerce and the e-grocery being the biggest top line drivers. E-com, I mentioned earlier, structurally underpenetrated. E-grocery, still, day 1 in Kazakhstan, with delivery and advertising also additive to revenue growth. 1P, primarily e-grocery, does result in lower net income growth versus revenue or up 40%, but that is still a pretty robust bottom line growth number.

Payments, a similar trends to those that we've just discussed for 2023. Revenue growth on the back of robust consumer and merchant trends. B2B additive to top line, take rate expansion due to higher take rate from bill payments will ensure that revenue grows faster than TPV. But the main take away, again, is that payments operational gearing remains intact, so bottom line growth of 25% ahead of revenue growth of 20%.

And then finally, moving on to fintech, expect another decent year that TFV origination over the last 6 to 9 months will drive revenue growth in 2024. Broadly stable trends in terms of yield. On the cost side, broadly stable trends in terms of risk, an enlarged deposit base and a higher cost of funding still impacting bottom line in the near term.

So overall, we're looking for consolidated bottom line growth of around 25% year-on-year. So another year of fast standing growth at scale. And within that marketplace and payments are faster growing and more profitable segments continuing to take share within the mix.

Just the other point that I would add with regard to the London delisting, just draw people's attention to -- there is a Q&A provided in the press release today. So if there are any questions specifically on the London delisting, you might find it helpful -- that Q&A section, you might find it helpful. So I'll just draw that to people's attention. But on that note, Daisy, let's open the call up to Q&A, please.

(Operator Instructions) Our first question today is from Gabor Kemeny from Autonomous.

My first question is on e-commerce and specifically on the merchant base. Now you showed that e-commerce merchants are 11% of your total merchant base now. And I think you flagged the opportunity to onboard more of your merchants to e-commerce. So can you talk a bit about this opportunity? What initiatives you have in place? And what do you see as the potential size of your e-commerce merchant base?

My other question was also on e-commerce and e-commerce take rate. You flagged that you are in the early stages of monetizing the value-added services. I wondered what your latest thoughts were on the pace of monetizing these value-added services?

And my final question is on the payments take rate. I understand, you expect stable take rate this year. But flagged the take rate addition from the higher take rate -- from higher-margin be a payments merchants. What is the take rate in that segment? And if you can help us understand what do you expect to offset this, whereby you assume stable payments take rate for the full year?

All right, Gabor, thank you very much for your questions. I'll take your question on payments, guidance and then hand over to Mikheil for questions on e-commerce merchants and the value-added services.

So we're not going to disclose product-by-product line in payments. What I would just say, you've got different dynamics there. So on the sort of downside, you have Kaspi Pay. So actually, it's well known in the public domain that that's at 95 bps, so below the average take rate. And then you also have other product, some above, some below. It's certainly true that bill payments has seen some take rate increasing is the mix changes there, particularly driven by digital payment fund services. But overall, I think still to think about broadly stable take rate is a pretty clear message and I wouldn't make a big deal in either direction.

Okay. So you want me to take the question about the commerce and merchant segment?

Yes, please.

So in terms of the merchant base, even though it's a nice number really to look at, I think, in general, our strategy is just to make sure that the consumers can find the right assortment they're looking for. So the demand for our marketplace is extremely high from the merchants, just because if you imagine 14 million monthly users, those are the commercially minded buyers with the payments and the funding functionality.

So on our side, really the merchant number is just I would say, probably is just the resulting number. So what we are focused on is just to make sure that we are enabling the merchants to -- yes, to buy the items they are looking for. So that's basically about the merchants. It is just a natural migration of the merchants to the e-commerce, just because we just give them a lot of high-quality sales uplift. But again, we're focused on making sure that the existing merchants can sell, making sure that the consumers can buy the items that they want to buy.

In terms of the take rate, our strategy has been quite consistent. We want to make sure that if you are a merchant and you are spending money with us, we actually deliver value. So if you are advertising, for example, then we deliver the value that your sale is going up. But at the same time, we have to make sure that we are providing high-quality experience for both consumers and the many merchants.

We don't want to be in the environment like many other leading marketplaces, when you cannot sell if you don't advertise. So that's not our strategy. Therefore, I wouldn't expect that the take rate will be growing at astronomical rates. It will be still a very reasonable growth within the revenue guidance we have provided. But again, that is just another stream of the revenue.

The one thing which I would like to mention is we entered grocery just basically and briefly, right? So our team is doing a great job of scaling that at a very efficient, profitable way, with the happy consumers. And we have pretty much become one of the leading grocers now in Almaty, which is the largest city in the country. And as we become the largest grocer, now we have quite a lot of us moving consumer goods companies coming to us and asking us to develop the products, advertising products for them.

So that would be another revenue stream, which does come from the merchants themselves, but actually comes from some of the brands and the companies that manufacture the items which we sell. And that's a great place to be in. For any company, if your user base coming to you and asking you to develop the products for them, I think this is probably the best position that any business can be. You just listen to your merchants and your consumers and make sure you provide the high-quality products.

Our next question today is from James Friedman from SIG.

So I wanted to ask a much more high-level question, and it kind of combines Slide 8 and then Slide 11. And thank you for this incremental disclosure on Slide 11. But in Slide 8, I was just wondering if you could help orient us as to this continued sharp increase in engagement 71 versus 60 in terms of the monthly actives, up 13% -- up 17%, excuse me. Yes, so what services or products, in particular resonated in 2023 to drive that kind of increase?

And then I guess, Slide 11, this would be a longer view. But if you were to look at the year 5 cohort, which is up 12x since 2018, how have you seen the profile of that engagement evolve? I mean, clearly, the number is powerful. I'm just curious as to what type of product or services over that duration has really expanded the engagement to that magnitude?

Okay. Thanks, James. Mikheil, over to you.

Well, in terms of the number of transactions for consumer, I mean, if you think what we have been creating, it's something really unique. But there is a simple view that we are expanding around the regular needs of the consumers, right? I mean, initially, we started with the payments and sort of just moving money between your accounts and friends and family and then we moved towards merchants.

And as we continue growing the merchant base, will just give you, as a consumer, more reasons to spend. So all the money which comes in is basically a digital money, right? It's all cashless transactions, and they start from us, that spending around their household budget. So that's what is really driving the transactions. It's almost like a replication of how many times you open up your wallet during the day in order to pay for something.

In Kazakhstan, you don't need the wallet anymore because it's Kaspi.kz app in your pocket. So that's basically is a proxy for our intensity. So we're just going through -- we are going around everything that you are -- as a consumer, you are spending money for. And we just made the whole spending exercise digital, and we replaced your wallet with the cash with our mobile app with the digital money only. So that's basically what drives the transactions.

In the -- going forward, there will be another uplift, just because we're digitalizing grocery and grocery is a high frequency transactions, and we are going after weekly purchase at the moment, but that's not going to be our finish line. So that's something also basically just gives you another sort of uplift in terms of the frequency and the transactions around the consumer. So that's about the transactions for consumer, James, and engagements.

And then around the Slide #11, David, I think, was a question?

Okay. Great. So here, what do you see that's -- it's almost like this question is around the same question, right? So it's like why the transactions for consumers are growing? So again, we have started in 2018, we just had much fewer reasons for consumers to pay through us. We're just only in the beginning of building the payment network. We were just entering the e-commerce space with -- I don't remember how many SKUs we had, but we had maybe a couple of hundred thousand, something like that, if not less. And now we have close to the 5 million SKUs on our e-commerce platform.

So again, as we continue in the merchant base, almost 600,000 merchants you can spend money with. So as we continue -- as we build the merchant base, we build the consumer base and we connected them to each other through the payment network, and we gave more reasons for a consumer to use digital money rather than the cash that all of that basically has been the growth driver.

And going forward, again, we will be -- from the services that we have today, the services like grocery, for example, will be the ones contributing to the transactions as well as services industry, which is interesting target for us as well. Services, I mean, anything that cannot be delivered, right? So it can be restaurants or barbershops and things like that. I'm just making a general statement about the service industry. I don't want to speak about exact innovation plans that we have on this call. I would rather have you to see our results rather than talk about them.

Our next question is from Will Vu from Wolfe Research.

This is Will on for Darrin Peller here at Wolfe. Just 2 questions from me. The first one just on the fintech yield expectation in fiscal year '24. I mean just looking at your guidance, it calls for stable fintech yields year-over-year, despite kind of seeing a higher mix towards BNPL. And looking broadly, with interest rates coming down, maybe just kind of walk us through some of the puts and takes on this dynamic here?

And then the second question that I had was just around the car marketplace as opportunity. You guys talked about car marketplace as being a more of a strategic priority for Kaspi in 2024. Maybe just expand upon that a little bit? How should we think about the TAM? And ultimately, why now?

Okay, Will, so thanks a lot for your questions. I'll take the first one on the yield guidance. So stable doesn't mean identical. It means broadly similar. I think if you look at the trend over the last couple of years and if you look at the trend last year, last year the yield moved to 26% from 27%. And that sort of delta is not inconsistent with previous years.

So the puts and the calls are on what's bringing the yield down. It's Buy Now Pay Later. We'll kick that to be structured in different ways. But one way is 0% for 3 months. And that's not the only way, but that's a component of it. And merchant financing, which is a lower-yielding product. So that's on the one side.

On the other side, the higher-yielding products that provide primarily the general purpose loan, which has declined in the mix and will continue to decline in the mix. So they're the sort of 2 sides of the equation. But I wouldn't expect -- again, it's like the -- Gabor's question on payments take rate -- the point about stable is to indicate not sort of some dramatic change in trend year-on-year around the same, plus or minus something consistent with what you've seen previously.

And then I'll hand over to Mikheil on the car marketplace opportunity.

Sure. I mean, I would prefer to describe later in the year in a bit more detail. So I will just take a step back and maybe I just explain the strategic view of certain things, how we actually operate. That is just a decision consumer is taking to buy a car. And when do you think about the buying a car, there are so many services related to that decision, right? You need the types. Well, you need to register the car, first of all, or you need to get the financing to buy a car, then you need to register a car, then you need to buy the tires, then you need to fill up the car with the gas, then you need to buy some of the spare parts during the year. And if something major breaks, then you actually go to the service station and you do that.

And if you think about some of the services, which can be built around this decision of the consumer are quite exciting, right? I mean we -- so from that perspective, what we are really excited about is once we now have the decision point for the consumer, the consumer can buy a car because we have the large classified on the car side. Now we just would like to build the unorganized consumer experience through around that decision point.

So that's basically why we are excited about it. It just happens that we are already #1 tire selling marketplace in the country already, and we are the largest car registration platform when people change the ownership. And we have also probably now #1 in car lending -- online car loan business as well. So all that is -- really just excites us that we can organize the consumer experience and just make it more seamless and therefore, deliver more value for a consumer and then deliver the more value for the merchants that participate in all these car-related activities.

So your question was, why now? And it's just because now we have this decision point about the car because we acquired the leading car marketplace last year. And at the time of acquisition, I mentioned that the decision of buying the car is the most important reason why the car classified is a great addition is not because it's #1 car classified. But it's because now we have a consumer making the decision about the car in our user story, and we can build from there.

So really excited. And later in the year, we'll be giving you a bit of a more details in the specific use cases like we've done before. Travel, e-grocery, B2B payments, all of those -- advertising, all of those businesses we've started from use cases, and now they are growing very rapidly.

Our next question today will be from Joshua Samuel from Mawer Investment Management.

So just one question on the e-commerce marketplace. I've been reading that you've got competitors like -- I think MoBerries, Ozone are investing quite heavily in Kazakhstan. Could you just walk me through, really Mikheil, how are you positioning the company to defend your position in the -- we have a very strong position in the e-commerce marketplace. And how do you -- I guess you want to avoid an outcome like Alibaba, right? So as a market leader, how do you prevent such outcomes in the future?

Sure. Well, I mean, if you look at our business, the most important competitive advantage we have is the consumer is transacting with us 2 times a day -- more than 2 times a day, and that's a single mobile application. So the consumer is not just coming to buy something from the marketplace, they're actually coming to -- for a daily usage around their entire daily activity. So that is the most important competitive advantage in our case.

And compared to Ozone or Wildberries it's just a business model that we have -- has such a strong network effects that for these guys, they can invest and provide the discounts and run the crazy promotional campaigns and might have uplift on a temporary basis. But then consumer will buy from you with a very heavy discount and then they come back to our platform because they open our app multiple times during the day.

So our consumers -- and our consumers are actually very much involved in our business. So you cannot take just like e-commerce or marketplace as a stand-alone basis, right? That's a very important difference from others.

The second, I would say that we are marketplace, which means we are not apart from the grocery part of our business, we're not trading the items. So we actually help the merchants to grow, and we give them tools to grow and from that point of view, any entrant that is coming on the market, they are not competing just against us. They're really competing against all this universe of the merchants which are providing the -- which are selling items through us, and we just give them technology, right? So from that perspective, I think it's also a very powerful part of our business.

And then the third piece is that we are constantly building the networks, right? So we have the largest last mile delivery network, for example, in the country with almost 6,000 automated personal machines, and delivery is also a source of very important competitive advantage.

So yes, so we are -- put our heads down and we're just making sure that we deliver the outstanding quality of the products for the consumers and the innovation toward the merchant so they grow their sales. And reinforced by the payment network, reinforced by the delivery network, reinforced by the Super App network function that provides a very important source of competitive advantage. So that's basically our view of the (inaudible) we constantly expand the new categories, right? So that's an important part of our business as well.

Do you -- but just a follow-up, do you feel the need to, I guess, price defensively in any other categories? I think I've heard MoBerries is, I think that potentially like lower price in the month on some products.

Well, there could be lower priced on some products if they want to. In our case, we are working around consumer and merchant needs, sort of overall. So we don't really feel anything and any pressure for us to provide any kind of price discounts. Again, these guys are just splitting the money, right? They run promotional campaign, consumer would buy something that have a discount, but then they come back to us for extra real, real, real purchases. And we just need to make sure that we have the items which they want to buy and they're looking for.

And if you look at our growth rates and the development that we have, yes, we don't feel like we need to compete on the price. But our merchants, you should understand, right? So when one item has 50 offers, 60 offers from the merchants, the -- actually merchants themselves are providing very competitive prices, right? So that's very important to keep in mind.

So we're not -- it's not as competing against Ozone as a merchant, right, or their merchant. It's our merchants actually. And because we have such a high number of the merchants and the price liquidity and our prices or the items that we have are actually quite very competitive compared to the prices which other players are offering. And then the speed of delivery, it's making a very important -- they're delivering very important value to the consumer.

Our next question is from Sam Griffiths from Vergent Asset Management.

Congratulations on the successful listing and a great set of numbers. I have 3 questions, please. The first is how you think about the TAM for the number of consumers that you could finance? When you look at your active consumer base, you've got a lot of data on these people. How are you thinking about the penetration? And where can that get to? That's the first one.

The second question is on the merchant services. As you grow that business, whether it be in B2B payments or merchant financing, is there any appetite to grow kind of any products on the funding side, maybe going aggressively after merchant deposits or whatever? Any comments there would be great.

And then finally, on the logistics platform. I just wanted to check, is this just for e-commerce? Or is there also an opportunity to plug into more general supply chain within the country?

Thanks, Sam. Do you want to take those, Mikheil?

Yes, sure. So in terms of the target market, I would say that the way to think about our business model is that the businesses which are front end of the merchant and the consumer relationship, those are the ones which are driving the financing or fee side of things, right? So you basically don't need money as a consumer. You want to buy something with it. You want to buy a car, you want to buy an iPhone. You want to buy TV and you want to buy tires and so on and so forth.

So actually, the driver of the fintech side is the shopping and the payment activity of our consumers. So that's a very important point about the growth. Therefore, the marketplace and the payments in marketplace specifically will be growing faster, because they are front end and the fintech is actually back end.

Merchants, they don't need just money. They need money to buy the same sort of inventory, which they sell in our marketplace. So that's basically on the financing side of things. So the sort of -- in terms of the target market, you can just think whatever consumers are buying and the merchants are buying to sell and consumers are buying from those merchants.

And again, the consumer finance is extremely underpenetrated and the merchant finance, we believe, even more underpenetrated because there are very few products in the market, which would be seamless and fully online and the car finance, we're just scaling as we speak.

In terms of the Merchant Services, I mean, I would say that we are innovating around the needs of our consumers and the use cases, which we see from the consumer or the merchant behavior and the data. So from that perspective, we are excited about building the businesses around the merchants, the merchant financing and the B2B is one of those.

This year, we still want to focus on building the payments as a foundation of transactions between the businesses, because that's how we have done before. If you keep -- if you think about the consumers the same, right? We build the payments initially and then connected consumers and the merchants and then we start building on top of, its value-added services.

So the same will happen with the merchants. There are some of the services which we already provide like a cash register, for example, for -- we provide to merchants for free. But that, again, enables us to work with the merchants more closely and help them with inventory and finance that inventory with the merchant finance and enable the B2B payments to actually get this inventory delivered and settled invoice with the brand. So yes, merchant services, there will be a wave of the innovation.

And in terms of the logistics platform, at this stage, we are really focused on enabling the consumer and the merchant, so basically pick up for merchant delivered to the consumer through the Postomat directly to the door. And that would be our important priority. Again, we're growing at such a rate that we want to make sure that we build the foundation. It's almost like build the foundation for the skyscraper before you start adding the services. And at this stage, that would be our priority, especially this year.

But then you probably know better than me that logistics can go sort of ways, right? It can go different ways. It can go between the consumers, it can go between the merchants. It's really a platform which can deleverage. But at this stage, we are focused on delivering the items from the merchants to the consumer and to build the scale.

That's super helpful. Just one follow-up, please, Mikheil. When you think about like the overall funding profile of the lending business, you expect that to stick mainly on the consumer side, going forward as the business evolves? Or is there more room for maybe funding for merchants to pay a part as well?

Yes. Sorry, I missed that piece of your merchant services question. We are basically driven by the merchants. So -- and again, this is the great place to be. That's the advantage of our business model. So now, for example, we started with the payments, there is an actual business account of the merchant in our Super App, which is fully validated and KYC'd. And now where we actually are is that the merchants have some -- they increased their sales, especially after our promotional events, they have some cash on their accounts. So if you would be a merchant, you would be asking us to develop the deposit product, because there is a cash (inaudible) your accounts.

So that would be a response to your question. The merchants are asking us to do that product and we are -- yes, we feel there is a use case for it and there is a scale, and we can deliver the value by building the best merchant deposit product on the market.

Our next question is from David Shapiro from Vanshap Capital. David has removed his question. So I'm going to move on to our next question.

Our next question is -- David has registered a question again, so I'm going to open David's line now.

David, are you still there?

I'm still here. Sorry about that. Congratulations on the listing and thanks to management and all the employees who are working hard on behalf of the shareholders.

Just 3 quick questions. First question, regarding the capital return and how you guys are thinking about it? Obviously, you listed -- the float is still rather limited. So how do you balance the ongoing share buyback program, which is obviously at the current price extremely attractive and well thought out versus wanting to encourage more liquidity on the exchange itself. So that's one question.

Second question around foreign expansion. As you look to maybe neighboring countries. Right now, what do you see as the biggest hurdles besides, obviously, the big plate of items that you have domestically, is there anything that's challenging getting into foreign markets, such as regulatorily speaking or lack of adequate targets or prominent targets that would be good for Kaspi to enter to. So I just wanted to see what the major hurdles were at this point.

And lastly, when you look at your guidance for 2024, just broadly speaking, are there any sort of big regulatory challenges that you can see locally, either on tax rate or perhaps interest rate caps, especially with the new administration -- I'm sorry, the new cabinet that is coming in for the current government. So anything that you want to flag, potentially that's incorporated in your guidance or that could potentially change some of those thought processes around underlying profitability?

All right. David, thanks for those questions. I'll take the capital allocation and then pass over to Mikheil for the remaining questions. So the simple answer is the U.S. listing doesn't change anything over the medium term in terms of our approach to returning capital -- in terms of our approach to capital allocation. So number one, first call on cash is always investing in the business, unchanged.

Number two, if we have excess cash, we return it to shareholders, unchanged. The track record of returning cash via both dividends and buybacks speaks for itself. And specifically with regard to buybacks, I think, since we started the program, we bought back $277 million to roughly over 18 months.

Like yourself, we feel that the stock's valuation does not adequately reflect the growth outlook. It's true that there's no new buyback program today, but we reserve the right to step in at any point in the future. We talked about an opportunistic approach in the press release. But I think you're right at this stage, so soon after the U.S. listing, it would be nice to see what the real level of liquidity is in the market, and that might take a little bit longer for us to find. So just -- let's see how things evolve.

On the rest of it, I'll pass over to Mikheil.

Sure. Thank you. David, thank you for those questions. I would make another just comment in terms of our liquidity and capital allocation. We are focused really on the company and its growth. And we are making decisions what is in the best of interest of the company because that's something which we don't control, the stock price. But we actually are responsible for execution. So things that we are focused on really is the company itself because we have very much long-term focus on our business.

In terms of the 2 other questions, expansion, it's just a really good place to be for us. And then we have companies across many markets just approaching us on different levels with different ideas for us how we can get involved. So it's really very preliminary at this stage. Nothing specific for me to report, but it's not the question if, it's actually a question when and which target and which market. So that's as specific as I can be. And I've mentioned several times that that's the #1 priority on our management list of things to be done. And if Kaspi's management gets something into their priority list, it gets done, as simple as this.

In terms of the guidance, I would say, in general, there is nothing really for us to report. The country's leadership and President Tokayev -- he has mentioned about executing the reforms. And once those reforms to be done on the basis of the economy growing and the investment climate also growing and becoming even more attractive for the investments.

So I think that's basically the foundation and extremely important for, everything else is really important details, obviously, but most important is that the country and the president, they have a view that it needs to be a good place for investors to invest. And I think that's an important foundation for everything else. So our guidance, basically, there's nothing really specific for us to report. And as you guys know, we never speculate about things.

We have time for one more question today. If you can kindly just limit yourself to one question, and we will be taking it from Can Demir from Wood & Co.

I actually want to ask a more broad question. As I'm following the per active customer TPV on the payment side of things, that number has reached $430 per month, give or take. And the average wage in Kazakhstan is around, I think, $700 or $800, of course, for working people. So Mikheil, how should we think about this, because people seem to be spending a lot relative to what they earn. So I just want what you would make out of the numbers that I mentioned.

Do you want to take that, Mikheil?

Yes, sure. I mean in general, I would say that these payments -- the movements around the consumers' money is also all about the savings that they have with us when they are -- we are the largest savings institution in local currency at the moment. And average ticket size of about $3,000 for consumers. So the consumers are not just spending with us, but the top of our funnel is the consumers actually saving with us as well. So that would be just the one sort of simple example.

I think we do have a number of savings consumers here, right? David, I think just as an example -- you -- yes. No, no.

4.8 million.

So let's say, 4.8 million consumers saved with us. So that's just one sort of -- really one use case, right? So then another -- think about the payments per consumer is also the consumers who are moving money between themselves. And you saw that the P2P, which is monetized, the penetration rate of this is what is about, I don't remember specifically, it's about -- yes, 13 -- yes, 34%. So the TPV which consumers have with us, it's also about the consumers actually moving money between themselves, friends and family. So it's just much more than the average salary that the person is earning.

Okay. Okay. So P2P is not chargeable because I remember in the past, it wasn't chargeable.

The vast majority of the P2P transactions is free of charge, but the B2B transactions, which at the moment are monetized, those are the transactions when you are moving the money, for example, on the -- from the -- from our wallet to the other card or is spending money abroad or moving the money abroad. So those are the kind of monetized. The vast majority of transactions, which are between accounts and between the consumers, they are free of charge. There is nothing changed in our pricing policy. It remains exactly the same.

Okay. And maybe just one clarification, sorry for (inaudible). But so you're saying 34% of it current chargeable volume is related to those chargeable P2P transactions?

Correct. 34% -- Yes. If you take this is the share -- David, can you pull up the slide, please, on the penetration of consumer products. The next one. Yes. Great. So 34% actually, if you look at the B2B penetration as a P2P service itself, it would be close to the 90% basically. So that's the penetration of 34% is only the P2P transactions, which are not monetized -- sorry, which are monetized. Much more, it's almost 90% would be the penetration of P2P, which is not monetized. We're just showing here for the purposes of revenue and that's why -- and TPV, that's why you have here only monetized transactions. But unmonetized is almost 90% penetration.

Okay. So I think, Daisy, that wraps things off. So thank you, everyone, for participating in the call. Thank you for your questions. I know there are some written questions we haven't been able to answer, so apologies, but happy to follow up directly. Thank you very much, everyone, and we'll speak to you at our Q1 results in April. Thank you. Bye-bye.

Thank you. Bye-bye.

Thank you, everyone, for joining today's call. You may now disconnect, and have a lovely day.