Wise profits triple as it pursues ‘mission’ of price transparency
The money transfer platform said it has been joining the “fight for transparency” over fees for people transferring money to and from Ukraine.
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Money transfer platform Wise has seen its profits nearly triple over the last six months as the amount of customers moving money cross-border boomed.
The company, which claims to be one of the cheapest and fastest options for moving money around the world, said it has been joining the “fight for transparency” over fees for people transferring money to and from Ukraine.
Its average fee is 0.64%, an increase of just 0.02 percentage points from the 0.62% average price it reported this time last year.
The uplift was a result of higher volatility in exchange rates and servicing costs, Wise said, promising it is working hard to keep prices down over time despite facing higher costs.
Our goal today remains unchanged - to make moving and managing money faster, easier, cheaper and more transparent for people and businesses around the world
It increased prices on some transfer routes and currencies over the period but was able to reduce fees on others.
But the London-based firm founded by Estonian businessmen, stressed its “mission” is for pricing to be transparent across the industry so people know exactly how much their international transfers cost.
Wise, formerly TransferWise, said it moved more than £51 billion for its customers globally in the six months to September 30, 49% more than the total amount sent in the same period last year.
Its pre-tax profits nearly tripled from £18.8 million to £51.3 million in the period, and revenues swelled by 55% to total £397 million over the half-year.
Furthermore, it had 5.5 million active customers in the second quarter of its financial year, a 40% increase from the 3.9 million it had in the same period last year.
Wise’s co-founder and chief executive, Kristo Kaarmann, said: Our goal today remains unchanged – to make moving and managing money faster, easier, cheaper and more transparent for people and businesses around the world.
“But we are still solving only a fraction of the problem and the fight for transparency must go on.
“In the past months we also joined the European Commission in calling on all providers to commit to full disclosure on all fees, including exchange rate markups, on all transfers to Ukraine – a significant step forward in the right direction for transparency in the industry.”