Wise, the global cross-border payments company, announced first-quarter results for fiscal year 2025 (FY25), showcasing significant growth in its customer base and financial metrics. The company reported a 26% year-over-year increase in quarterly active customers, reaching 8.4 million users.

Wise Reports Q1 FY25 Results with 26% Growth in Active Customers

The customer growth translated into an 18% rise in transaction volumes, totaling £33.2 billion for the quarter. On a constant currency basis, this increase was even more visible at 20%. Wise attributes this growth to both improved customer retention and an influx of new users joining through recommendations.

The customer base also increased compared to Q4 of the last fiscal year, during which Wise reported reaching 8 million. Throughout the last fiscal year, the total number of active customers nearly reached 13 million, and the platform's profits amounted to £354.6 million.

Underlying income for the quarter grew by 22% year-over-year to £325.4 million. This growth was supported by a 23% increase in deposit balances and a substantial 55% jump in card and other revenue streams.

"We're pleased to start the new financial year on a positive note, with strong momentum in active customer and volume growth,” commented Kristo Käärmann, Co-founder and Chief Executive Officer (CEO) of Wise.

Despite the growth figures, Wise continues to prioritize cost reduction for its customers. The company reduced its cross-border take rate to 64 basis points, down from 67 basis points in the previous quarter, representing a roughly 5% fee reduction for users.

“We remain committed to offering the lowest possible price for moving and managing money internationally, a key pillar of our mission and a significant driver of business growth,” Käärmann added.

Recent Partnerships and FY25 Outlook

The company also highlighted strategic partnerships, including its first Wise Platform collaboration in Brazil with Nubank, one of the world's largest digital banking platforms.

“Meanwhile, our partnership with Qonto in Europe is simplifying international payments for over 500,000 SMEs and freelancers,” commented the CEO.

Wise maintains a positive outlook for fiscal year 2025, projecting an income growth of 15-20% over FY24. The company continues to focus on expanding cross-border volumes while targeting an underlying profit before tax margin of 13-16%.

A few months ago, the company made a change in its top management by appointing Emmanuel Thomassin as the new Chief Financial Officer and Director. He is set to join the London-listed fintech on October 1, 2024.