Wise Posts 25% Jump in Q2 Revenue as Remittance Skyrockets
- Almost 4 million customers made transactions on the platform in the quarter.
Wise (formerly TransferWise), the British Fintech Fintech Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Read this Term primarily facilitating cross-border money transfers, released a trading update on Tuesday, reporting a 25 percent yearly jump in its revenue for the second quarter of the ongoing financial year.
In absolute terms, the revenue came in at £132.8 million. However, quarter-over-quarter the company registered a revenue growth of 8 percent.
Client Activities Jump
The jump in revenue was pushed by the rising demand for retail money transfers. Wise revealed that almost 4 million customers made transactions in the quarter. The number of active personal customers on the platform increased by 22 percent, whereas active business customers grew by 44 percent.
The total volume of transactions shot up 36 percent year-over-year to £18 billion. However, the company’s ‘take rate’, which it books as revenue, decreased to 0.74 percent from 0.8 percent in the same quarter in the previous fiscal. It justified the lower take rate because of the decreased transaction fees.
“...the price drops were partially offset by revenue from other sources beyond cross-border transactions. But, at the same time, we've seen a higher gross margin as we continue to reduce the marginal cost of a transaction,” the company noted.
The fintech firm is now expecting revenue growth in the low to mid 20 percent range for the entire financial year.
“During the quarter we made strong progress: we dropped prices faster than hoped, our Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term got faster, with more features for businesses, and we launched our exciting new 'Assets' feature for customers in the UK,” said Wise Co-Founder and CEO, Kristo Käärmann.
“We're moving more of the world's volume and operating at a lower cost, the benefit from which we've passed onto our customers, whilst maintaining a sound sustainable business model that's investing even more for the long term.”
Wise (formerly TransferWise), the British Fintech Fintech Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Read this Term primarily facilitating cross-border money transfers, released a trading update on Tuesday, reporting a 25 percent yearly jump in its revenue for the second quarter of the ongoing financial year.
In absolute terms, the revenue came in at £132.8 million. However, quarter-over-quarter the company registered a revenue growth of 8 percent.
Client Activities Jump
The jump in revenue was pushed by the rising demand for retail money transfers. Wise revealed that almost 4 million customers made transactions in the quarter. The number of active personal customers on the platform increased by 22 percent, whereas active business customers grew by 44 percent.
The total volume of transactions shot up 36 percent year-over-year to £18 billion. However, the company’s ‘take rate’, which it books as revenue, decreased to 0.74 percent from 0.8 percent in the same quarter in the previous fiscal. It justified the lower take rate because of the decreased transaction fees.
“...the price drops were partially offset by revenue from other sources beyond cross-border transactions. But, at the same time, we've seen a higher gross margin as we continue to reduce the marginal cost of a transaction,” the company noted.
The fintech firm is now expecting revenue growth in the low to mid 20 percent range for the entire financial year.
“During the quarter we made strong progress: we dropped prices faster than hoped, our Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term got faster, with more features for businesses, and we launched our exciting new 'Assets' feature for customers in the UK,” said Wise Co-Founder and CEO, Kristo Käärmann.
“We're moving more of the world's volume and operating at a lower cost, the benefit from which we've passed onto our customers, whilst maintaining a sound sustainable business model that's investing even more for the long term.”