Wise half-year revenue rises 23% to $1.45bn as its average cross-border fee falls to 0.50%
The money transfer company moved $141bn for 16.2 million customers in six months, with 78% of transfers now arriving instantly, and expects full-year revenue growth in the upper half of its target range.
By Daily Oracles News Team2 min read
Customers paid Wise an average of 0.50% of the amount they sent abroad in the six months to 30 September, down from 0.52% a year earlier. Net revenue for the half rose 23% to $1,453.1m.
Wise, which reports in US dollars and has been listed on both Nasdaq and the London Stock Exchange since May, had 16.2 million active customers in the period, 21% more than a year earlier. They moved $141.0bn across borders, an increase of 24%, driven mainly by growth in the US and Asia Pacific.
Wise said its direct connections, which reduce its reliance on intermediaries, help it move money faster and at lower cost. It added a ninth, in Malaysia, during the half. The company said 78% of transfers now arrive instantly.
Costs of processing payments fell 12% to $229.7m as it negotiated better terms with suppliers. Spending on technology and development rose 51% to $292.2m, partly to run a second site that adds backup to its systems.
Profit and outlook
Income before tax rose 9% to $334.9m, a margin of 23%, and net income rose 6% to $249.2m. Operating costs grew faster than revenue, up 28%, as Wise spent more on staff, marketing and the requirements of its US listing, including about $15m of one-off listing costs.
For the year to March 2027 it expects net revenue growth in the upper half of its 15% to 20% target range at constant currency, and a pre-tax margin around the top of its 20% to 25% range. Nearly half of a share buyback of more than $500m, started in July, has been completed.
Cards, balances and banks
Money held with Wise grew 28% to $43.5bn, of which $11.4bn sat in investment assets. Spending on Wise cards rose 33% to $27.2bn and card revenue rose 43% to $252.0m. Interest earned on customer balances rose 16% to $463.6m, and Wise paid $112.7m of interest back to customers.
Wise Platform, the service that lets banks use its payment network, has added OakNorth, a digital bank for entrepreneurs, and the European financial platform Vivid since the end of September, along with two large North American banks during the half.
