Wise PLC (LSE:WISE), the international payments fintech that floated in the summer, announced that it managed to cut prices for customers but also grow the volume of transactions, so it confirmed revenue will climb 20-25% in the full year.
However, the 'take rate' – defined as revenue as percentage of volume – is expected to be slightly lower in the second half due to price reductions. Full-year gross margin is expected to come in at 65-67% from 62% last year.
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In the second quarter, almost 4mln customers transferred £18bn, representing a 36% increase from last year.
Customer prices are now 0.62% of the money transferred on average, down from 0.7% in 2020.
“During the quarter we made strong progress: we dropped prices faster than hoped, our payments got faster, with more features for businesses, and we launched our exciting new 'Assets' feature for customers in the UK,” said co-founder and chief executive Kristo Kärmann.
‘Assets’ gives customers a potential return on their balance with Wise by holding it in a different asset class, while still being able to spend and send as though it were held as cash.
The payments provider, which attained an £8bn valuation in its experimental London listing, also launched features for business customers including the ability to attach receipts and notes to card transactions, plus better controls.
It has also partnered with US neobank Sable and OnJuno to allow their customers to send money directly from those platforms.