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

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

The London-based 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 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.

“We were delighted to announce that Morgan Stanley is now using 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 Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term 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.