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Wise buoyed by rising interest rates and customer growth

Money transfer firm Wise is reporting a strong first quarter, driven by 33% year-on-year growth in active customers to 6.7 million and rising interest income.

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Wise buoyed by rising interest rates and customer growth

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With new customers coming onboard, volumes passed over the platform increased by 16% to £28.2 billion. Revenue for the quarter was up 28% to £240 million, while income grew 66% YOY to £311 million.

Wise has benefitted from the effect of rising interest rates on customer account balances, which grew to £11.5bn by the end of the quarter, paying the firm a gross interest income yield of 3.4% in Q1 FY24.

Kristo Kaarmann, CEO and co-founder points to a number of factors driving growth, including an infrastructure build-out and the roll out of new products.

"We made our payments faster in Brazil, Australia and across a number of routes in Asia," he says. "Now 57% of payments on Wise are delivered in under 20 seconds. Our Assets 'Interest' feature is now available to customers in 11 countries, after launching in Germany, Sweden and Norway this quarter."

Outlook for FY24 remains unchanged, with projected income growth of 28-33%, and adjusted Ebitda margin remaining above medium term guidance for a 20% uplift.

Last month Wise reported a tripling in financial profits from £43.9m in 2022 to £146.5m for the year ending March 2023.

Says Kaarman: "As our customer proposition continues to improve, more people and businesses are choosing Wise, and it is this growth in customer adoption that will underpin our long-term success."

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