Wise Q1 customers, volumes rise as fee cuts continue

16th Jul 2024 07:32

(Sharecast News) - Global money transfer service Wise has reported a rise in customer numbers and volumes as it continued to cut transaction fees.

The company, which offers low-cost transfers and banking in multiple currencies, said active customers grew 6% year on year to 8.4 million, driven by strong retention and new clients joining as a result of recommendations.

Volumes were up 18% compared with last year to £33.2bn, driven by the continued growth in active customers, while it cut fees, with the cross border take rate reducing 5% to 64 basis points and down from 67 bps in the final quarter of its 2024 fiscal year.

Underlying income grew 22% to £325.4m, with deposit balances up 23% and strong card and other revenue growth of 55%.

Wise said it expected full-year 2025 underlying income to grow 15-20% over this year and targeted underlying profit before tax margin of 13-16%.

"We're pleased to start the new financial year on a positive note, with strong momentum in active customer and volume growth. We remain committed to offering the lowest possible price for moving and managing money internationally, a key pillar of our mission and a significant driver of business growth," said Kristo Käärmann, Wise's co-founder and chief executive.

"This quarter, we were thrilled to announce our first Wise Platform partnership in Brazil with Nubank, one of the world's largest digital banking platforms. Meanwhile, our partnership with Qonto in Europe is simplifying international payments for over 500,000 SMEs and freelancers."

Reporting by Frank Prenesti for Sharecast.com