“We continue to expect this benefit to build over time as we drive more value-added services.”

In context

“s that both PayPal and Venmo are ways to pay anytime and anyplace. Ultimately, our goal is to form deeper consumer relationships, driving habituation across online and offline channels. Turning to PSP, which spans both large enterprise and SMB processing, as well as part of our VAS portfolio like payouts, invoicing and point-of-sale solutions, volume grew 2% compared to 6% in the fourth quarter. As we’ve discussed throughout the past year, the shape of this growth is intentional. We are prioritizing healthy, quality growth within our Braintree business and have made deliberate choices to shift away from unprofitable volume. Shifting away from this volume pressures gross revenue but is accretive to transaction margin dollars and should result in more than one point of TM benefit this year. We continue to expect this benefit to build over time as we drive more value-added services. Moving to more financial detail on Slide 8, transaction revenue was flat on a spot basis or up 1% on a currency neutral basis to $7 billion, driven primarily by branded checkout, Venmo and SMB processing. This growth was offset by the shift away from unprofitable Braintree volume that I just mentioned. Importantly, other value-added services revenue grew 17% to $775 million, driven primarily by healthy performance in consumer and merchant credit. We ended the quarter with $6.5 billion in net loan receivables, up 1% sequentially, and we continue to be pleased with the quality, the diversification and the performance of our credit portfolio. We take a prudent approach to managing the portfolio’s exposure and our goal is to sustain a balance sheet-lite business model while providing our cust”