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  "documentTitle": "Remitly Global, Inc. (RELY)",
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  "authorName": "Spruce Point Capital Management",
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  "presentationDate": "2025-03-11 00:00:00",
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      "text": "Remitly also states that take rate is heavily influenced by average transaction size. Yet, Remitly has consistently said that its take rate has remained stable. How is it possible?",
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      "text": "Average Take Rate by Quarter (%)",
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      "text": "take rate: 2.22%",
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      "text": "Remitly doesn't disclose number of transactions and rarely comments on its average transaction size. In fact, we can only find one mention in September 2023 that it was in the $200 - $300 range. However, before it was public in a letter dated November 2020 to the Federal Reserve, it referenced that its average transaction size was $350 which indicates a decline of approximately 14% - 43%. Remitly also states that take rate is heavily influenced by average transaction size. Yet, Remitly has consistently said that its take rate has remained stable. How is it possible?",
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      "text": "“Considering that the average Remitly transaction size is around $350, we believe that the proposed rule change would impact the majority of Remitly's customer base.” — Letter To FINCEN Nov 27, 2020; “But when you're comparing why's, which was the question to Remitly or banks to Remitly, the average transaction size will bring down the take rate significantly even though the revenue and profit per transaction would be more similar.” — JP Morgan Conf May 23, 2023; “And the reason I mentioned that the $200 to $300 kind of average transaction size is our customer segment, unlike some other customer segments, the more affluent bank customers might have the privilege to wait to send money when rates are good.” — Goldman Conference Sept 7, 2023; “So the last 12 quarters, which is -- goes as far back in terms of when we've shared that as a public company, the take rate has been between 2% and 2.5%. So a lot of stability there between 2% to 2.5%. That's point one, stability in pricing.” — Goldman Conf Sept 2023; “So I'll break out pricing and take rate separately. On the take rate side, it makes sense, investors look at it because you've got revenue and you've got total volume. But the kind of take rate fluctuations, which were within a few basis points in Q1 is mainly due to mix shift because take rate is so heavily influenced by average transaction size.” — JP Morgan Conf May 20, 2024",
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      "text": "Source: RELY Conference transcripts, Letter to Federal Reserve / FINCEN",
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      "text": "Remitly on Avg. Transaction Size vs. Take Rate",
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      "text": "How Is Remitly's Take Rate Stable In The Face of A Dramatic Decline In Average Transaction Size?",
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