Wise plc (LON:WISE) today provided a trading update for the second quarter of its 2025 financial year.
During this period, the number of active customers using Wise increased 23% year-over-year to 8.9 million in the second quarter, driven primarily by existing customers recommending Wise.
Continued growth in customer numbers and the introduction of Wise accounts led to cross-border transaction volumes up 20% year-on-year (23% at constant currencies) to £35.2bn, with customer deposits up 20% year-on-year and card and other income increased by 49%.
In the second quarter, 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, down 8bps year-on-year due to lower prices (6bps) and mix changes (2bps). The equivalent of 2bps of this reduction will be offset at the underlying income level by a corresponding increase in the prices of non-border services as part of Wise’s cost allocation restructuring.
Underlying revenue rose 17% year-on-year to £337m in the second quarter, with first-half growth of 19%. For FY25, Wise continues to expect underlying profit growth of 15-20%.
Underlying gross profit margin remains at a high level of approximately 76% in the first half of FY2025. This reflects higher cost of goods sold relative to volume, while Wise continues to invest to support and drive growth.
Co-founder and CEO Christo Carman commented:
“Firstly in India, we won approval to further free international remittances and removed the previous $5,000 cap. This will improve our proposition and increase our customer share in India. We hope to be able to reduce the cost of remittances to and from India over time. Next, in Australia, we will obtain the Australian Investment Financial Services License and launch our investment product ‘Asset’ later this year. can now be introduced in Australia. And finally, in Brazil, we are pleased to have obtained a payment institution license and been granted access to the Brazilian payment system (PIX). Once integrated, this will be the sixth direct connection to the national payment system. ”
