Financial
technology company Wise (LSE: WISE) reported strong performance in the third
quarter of fiscal year 2025 (FY25), with cross-border transaction volumes
reaching £37.8 billion, marking a 24% increase from the previous year, driven
by expanding customer base and growing adoption of its digital payment
services.

Wise Reports Q3 Growth
with 24% Surge in Cross-Border Volumes

The
London-based fintech saw its active customer base expand to over 9 million
users in Q3, representing a 20% year-over-year (YoY) increase. The company
continued to gain traction, evidenced by a 39% jump in card and other revenue,
while total account balances grew by 26% to £16.2 billion.

Underlying
income rose 13% to £349.5 million in the third quarter. When adjusted for
currency fluctuations, the growth rate stands at 20%. The company’s
cross-border take rate decreased by 11 basis points to 0.56%, primarily due to
price reductions implemented in the first half of fiscal year 2025.

“This
quarter saw us take another step closer to achieving our mission, most notably
through extending the availability of Wise to even more customers,” commented Kristo
Käärmann, the Co-Founder and Chief Executive Officer at Wise.”

The values for active clients and volumes are also higher compared to the strong Q2 FY25, when the volume reached £35.2 billion, and the customer base stood at 8.9 million.

In a move
to expand its institutional reach, Wise also recently secured partnerships with
major financial players. Morgan Stanley has integrated Wise’s infrastructure
for international settlements for its corporate customers. Additionally,
Standard Chartered will implement Wise’s technology to enhance its SC Remit cross-border
payment service.

“Wise for
international settlements capabilities for its corporate customers.
Additionally, we announced that Wise will soon power faster and cheaper
international payments for Standard Chartered’s cross-border payment service,
SC Remit,” the CEO added.

Brazil Market Expansion

Following growth
in the Brazilian consumer market, Wise expanded its services to include
micro-businesses in the country. The company is working on integrating with
Brazil’s PIX payment system to strengthen its local offering.

“Having
seen rapid customer growth from the popularity of the Wise Account for
individuals in Brazil, we were pleased to also launch our service for
micro-businesses based in Brazil during the quarter,” explained Käärmann. “This
comes as we work towards integrating with Brazil’s payment system (PIX) which
will further enhance the quality of our proposition in the country.”

Looking
ahead, Wise maintains its forecast for underlying income growth of 15-20% on a
constant currency basis for FY25, though reported growth is expected to land at
the lower end of this range due to foreign exchange headwinds.

And what did the previous year look like? In FY24, which ended on March 31, the active client base reached nearly 13 million, and profits grew by over 200% to £354.6 million.