“Also, currency volatility is moderating, and we are now lapping very high currency volatility from the fourth quarter last year.”

In context

“d key international markets for the rest of the quarter. On the cross-border front, the travel recovery trend has been steady and generally in line with our expectations so far for fiscal year ‘23. The cross-border travel index to 2019, excluding intra-Europe, has been improving at a rate of 5 to 6 points each quarter. We are assuming this pace of recovery continues into the fourth quarter. The region to monitor closely is Asia, especially travel in and out of Mainland China. On the cross-border e-commerce front, we’re also assuming recent trends continue adjusted for crypto-related volatility. It is important to note that just as we saw in the third quarter, even as the cross-border business continues to recover relative to 2019, the year-over-year growth rate will continue to slow down. Also, currency volatility is moderating, and we are now lapping very high currency volatility from the fourth quarter last year. Our value-added services and new flows businesses have grown much faster than our consumer payments business. Sustaining faster growth rates for these businesses remains a critical priority. In the fourth quarter, we expect incentives as a percent of gross revenues to be between 27.5% to 28.5% to finish the year at the high end of the 26.5% to 27.5% range. When you pull all this together, we expect fourth quarter net revenue growth of around 10% in nominal dollars with minimal impact from exchange rate shifts. The sequential slowdown is driven by three factors: the quarter lag in recognizing service fees, the expected slowdown in cross-border growth and moderating currency volatility lapping very high levels reached last year. As we indicated previously, non-GAAP operating expense growth”