Wise registers increase in cross border volumes, customer deposits, card revenue in Q2 FY25
Wise plc (LON:WISE) today provided a trading update for the second quarter of fiscal year 2025.
During the period, the number of active customers using Wise grew by 23% year-on-year to 8.9m in Q2, driven primarily by existing customers recommending Wise.
Continued growth in customers and Wise account adoption drove a 20% year-on-year increase in cross border volume (23% on a constant currency basis) to £35.2bn, a 20% year-on-year increase in customer deposits and a 49% increase in card and other revenue.
In Q2, the company continued to reduce and restructure its cross border pricing to sustainably drive growth. The cross border take rate for the quarter was 59bps, an 8bps reduction year-on-year due to lower prices (6bps) and a changing mix (2bps). The equivalent of 2bps of this reduction is offset at an underlying income level by a corresponding increase in pricing on non-cross border services as part of Wise’s restructuring of cost allocations.
Underlying income grew by 17% from the year-ago quarter to £337.0m in Q2, bringing growth in H1 to 19%. For FY25, Wise continues to expect underlying income growth of 15-20%.
The underlying gross profit margin remains elevated at c76% for H1 FY25. This reflects the scaling of costs of goods sold relative to volumes while Wise also continues investing to support and drive growth.
Kristo Käärmann, Co-founder and Chief Executive Officer, commented:
“Firstly, in India, we secured approvals to further unlock outward transfers, removing a previous USD 5,000 cap. This allows us to improve our proposition and grow our customer share in India, which is expected to help us reduce the cost of sending to and from India over time. Secondly, in Australia, we have been granted an Australian Financial Services Licence for Investments, enabling us to bring our investment product ‘Assets’ to Australia later this year. And finally, in Brazil, we were delighted to be given a Payments Institutions licence, granting us access to Brazil’s payment system (PIX) which, once integrated, will be our sixth direct connection to domestic payment systems”.
October 15, 2024 @ 5:06 pm
I have used ewallets for many years and had many problems with them, especially the problems you never have with traditional banks. Now that I only use traditional banks for my business for safety and stability. With ewallets, I only use them now and then for gaming and other occasional use.