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Highlights:
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Wise PLC has reported a 23% increase in customer numbers in the latest quarter, reaching a total of 8.9 million.
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Cross-border payment volume rose by 20% year-on-year to £35.2 billion, driven by recommendations from existing customers.
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The company reduced its cross-border take rate to 59 basis points, a decrease of 8%, in order to enhance its market presence and drive growth.
Wise PLC (LSE:WISE), a leading cross-border payments group listed on the FTSE 100, has announced a significant increase in customer numbers for the latest quarter, with a 23% rise bringing the total to 8.9 million. This growth is largely attributed to existing customers recommending Wise's services to others, highlighting the strength of its user experience.
The increase in customer engagement has resulted in a 20% year-on-year growth in cross-border payment volume, reaching £35.2 billion. Alongside this, customer deposits also saw a 20% increase, while revenue from card and other services surged by 49%.
In a strategic move to maintain its growth trajectory, Wise reduced its cross-border take rate to 59 basis points for the quarter, reflecting an 8% decrease. This reduction was partially offset by revenue from other services. The company reported a 17% increase in underlying income for the second quarter, totaling £337 million, and a 19% rise for the first half of the financial year.
Despite lower margins anticipated in the second half, the company maintains a medium-term margin outlook of 13-16%. No further significant reductions in fees are projected for the current year. Chief Executive Kristo Käärmann emphasized that the price cuts were essential for enhancing Wise's market presence. He stated that the focus on investments aims to provide a superior proposition and sustainably lower prices, facilitating the transition from processing billions to trillions in cross-border transactions.
Additionally, Wise is enhancing its offerings through platform partnerships, notably its recent collaboration with AbbeyCross. This partnership integrates Wise's infrastructure directly into AbbeyCross's services, further expanding Wise's reach and capabilities in the cross-border payments market.
