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. It will bring 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. They reflect 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 an 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.