Cross-border
payment provider Wise (LSE: WISE) reported a 57% increase in underlying profit
for the first half of fiscal year 2025, as the company’s expansion of its
global payment infrastructure and growing customer base continued to drive
strong financial performance.

Wise Posts 57% Profit Jump
as Global Payment Network Expands

The
London-based fintech company saw its underlying profit before tax rise to
£147.1 million in the six months ended September 30, while revenue grew 19% to
£591.9 million. The company’s active customer base expanded by 25% to 11.4
million users, with customer balances reaching £14.7 billion.

“We
are pleased with the progress over the first six months of the year,” said
Kristo Käärmann, Co-Founder and CEO of Wise. “Our customers value the
speed, convenience and price we offer, with over 70% of new customers joining
Wise through recommendations by existing customers.”

The
company’s infrastructure investments have yielded significant operational
improvements, with 63% of transfers now completed instantly and 94% within 24
hours. Wise has secured regulatory approvals to integrate directly with
domestic payment systems in Brazil, Japan, and the Philippines, bringing its
total direct connections to eight once fully implemented.

These
efficiency gains have allowed Wise to reduce its cross-border take rate to 62
basis points, down 5 basis points from the previous year, reflecting the
company’s strategy of passing cost savings to customers. The approach appears
to be working, with over 70% of new customers joining through word-of-mouth
recommendations.

Just yesterday
(Monday), Finance Magnates informed that Wise partnered with Standard
Chartered to enhance the bank’s retail remittance offerings. This collaboration
aims to provide Standard Chartered’s customers with more efficient and
cost-effective international money transfer options.

FY25 Outlook

Emmanuel
Thomassin, Wise’s newly appointed CFO, highlighted the company’s strong
fundamentals while noting that margins are expected to normalize in the second
half.

“We
continue to target a medium-term underlying profit margin of between 13-16%, a
range that we expect to move closer to achieving in the second half of
FY25,” he said.

The
company’s growth plans include expanding its addressable market beyond its
current small share of the estimated £27 trillion cross-border payments market.
Käärmann envisions a future where a $10,000 international transfer could cost
as little as $10, compared to current bank charges of $200-$400.

Wise’s
partnership network continues to grow, with recent additions including Nubank
in Brazil, Qonto in France, and a agreement with Standard Chartered to power
the bank’s cross-border payment service across Asia and the Middle East.

The company
maintained its guidance for 15-20% underlying income growth for both FY25 and
over the medium term, signaling confidence in its growth trajectory despite
planned price reductions aimed at driving long-term market share gains.

A Week ago,
Wise’s CEO, Kristo Käärmann, was fined £350,000 by the UK’s Financial Conduct
Authority (FCA) for failing to disclose significant tax issues. The fine
relates to a 2017 share sale, where Käärmann did not inform the FCA about a
substantial capital gains tax liability, leading to questions about his
compliance with regulatory standards