Xero Investor Briefing Summary Company Overview - **Company**: Xero (OTCPK:XROL.F) - **Date**: February 02, 2026 - **Focus**: AI strategy, payment strategy, and overall business growth Key Points Industry and Market Dynamics - **AI Opportunity**: Xero sees itself as a potential net winner in the AI space, with a belief that AI can significantly expand the Total Addressable Market (TAM) for SaaS companies, with Gartner forecasting a 4x TAM expansion [2][3] - **U.S. Payments Market**: The U.S. SMB payments market represents a $29 billion TAM, with accounts payable alone being a $14 billion opportunity expected to grow to $19 billion by 2030 [40] Core Business Strategies - **AI Strategy**: Xero's AI strategy is built on four pillars: 1. Automating actions and workflows across accounting, payments, and payroll [9] 2. Providing actionable insights to help customers manage their businesses better [9] 3. Reimagining SaaS applications to be more intelligent and user-friendly [10] 4. Ensuring high accuracy in financial management systems, leveraging decision data and context graphs [11][12] - **Melio Acquisition**: The acquisition of Melio is seen as a strategic fit to combine accounting and payments, addressing critical needs for U.S. SMBs [37][38] Product Innovations - **AI Features**: - Small businesses save an average of 22 hours per month using automated actions [14] - Over 97% of help sessions are resolved without a support ticket due to AI-enabled tools [14] - The JAX chatbot has seen a 61% increase in user messages in the last three months [14] - **Bank Reconciliation Agent**: The new bank reconciliation agent automates the reconciliation process, reducing the workload from hundreds of items to just a few [19][20] - **Insights Agent**: The JAX Insights agent provides deep analysis and actionable insights, achieving over 90% accuracy [26] Customer Engagement and Feedback - **Customer Testimonials**: Customers report significant time savings and increased value in their roles as trusted advisors due to Xero's AI features [31][32] - **Subscriber Growth**: Xero has around 2 million subscribers benefiting from AI features, with over 300,000 subscribers adopting new features launched in FY 2026 [33] Monetization Strategy - **Monetization Framework**: Xero plans to bundle features across plans, provide add-ons for AI capabilities, and experiment with consumption-based pricing to align monetization with the value delivered [34][35] Future Outlook - **Focus for FY 2027**: Xero aims to embed AI features across its offerings, broaden access through add-ons, and deepen the value provided to customers with new AI agents [36] Additional Insights - **Market Friction**: The U.S. payment system is characterized by significant friction, with 20% of accounts payable volume still processed through paper checks and cash, creating opportunities for digitization [41][42] - **Melio's Role**: Melio's platform is designed to simplify bill capture and approval workflows, enhancing flexibility and choice for SMBs [43][44] This summary encapsulates the key insights from Xero's investor briefing, highlighting the company's strategic focus on AI and payments, product innovations, customer engagement, and future growth plans.

Core Insights - The intersection of crypto and AI primarily revolves around payment systems, as AI agents require a method to facilitate transactions for services rendered [1][2] - As AI and robotics evolve, the need for secure and efficient value transfer between machines becomes critical, necessitating the use of blockchain technology [2][3] Group 1: Payment Systems - AI agents performing services for one another will require a digital payment mechanism, likely utilizing blockchain technology [2] - The emergence of autonomous machines, such as drones and smart devices, will create complex interactions that necessitate automated payment systems [3] Group 2: Trust and Verification - Trust between systems is essential for enabling payments, as there must be proof that a service has been completed before a transaction occurs [3] - XYO aims to establish a "bridge" that provides verification of actions taken by machines, akin to a proof of work system for robotics [3] Group 3: Infrastructure Needs - Current blockchain solutions are primarily designed for value transactions and do not effectively support data storage and analysis [4] - XYO is developing a blockchain specifically tailored for data management, offering cost-effective and immutable data storage solutions [5]

AI agents are about to become economic actors.Not copilots.Not chatbots.Actors that plan, decide, negotiate, and pay.The problem? Payments were never designed for machines. https://t.co/vl6KAEsHGw ...

Payment Innovation - Visa is integrating USDC settlement for US banks on Solana, enabling faster and programmable payments [1] - The integration positions Solana as a central component in upgrading global finance infrastructure [1]

⚡️UPDATE: Velo teams up with WLFI to bring USD1 into its ecosystem for payments, FX, and digital assets. https://t.co/3mYN3WMDBx ...

Project Overview - Starmax focuses on the payments and loyalty sectors [1] - The project received recognition from PiCoreTeam [1] - Starmax took second place in Pi Network's recent hackathon [1] Potential Impact - Starmax could be at the heart of $PI's future [1]

RT Ryan Watkins (@RyanWatkins_)Solana is quietly establishing itself as the leading public blockchain for payments.Expect more competition here from Tempo, Arc and more in coming quarters, but still believe most enterprises will prefer Solana’s neutrality.Credible neutrality is grossly under-appreciated. ...

Stablecoin Adoption - Visa is enabling U S banks to settle payments in Circle's USDC on Solana, indicating a step towards mainstream stablecoin adoption [1] - Cross River Bank and a16z-backed Lead Bank are among the initial participants [1] - Visa plans to expand access to this settlement capability in 2026 [1] Payment Industry Implications - The move has implications for payments, banks, and Solana's institutional push [1]

PayPal Moves to Set Up Utah-Chartered Bank to Bolster Payments and Lending► https://t.co/V7Gp6xw2wg https://t.co/V7Gp6xw2wg ...

Crypto Fundraising Overview - Top 10 crypto projects raised a total of $215.5 million last week [1] - LI.FI leads with $29 million raised for cross-chain API [1] - Real Finance also raised $29 million for L1 and RWA [1] Project Categories - Cross-Chain API: LI.FI raised $29 million [1] - L1 & RWA: Real Finance raised $29 million [1] - NFT & P2E: KOI raised $25 million [1] - Staking: TenX Protocols raised $22 million [1] - Payments: MetaComp raised $22 million [1] - Data Service & AI: Surf raised $15 million [1] - AI & L1: Helios raised $15 million [1] - RWA & Perpetuals: Cascade raised $15 million [1] - Non-USD Stablecoin: Crown raised $13.5 million [1] - Yield Aggregator: YO raised $10 million [1]