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Wise reports 55% profit surge as UK demand for digital payments soars

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British digital payments giant Wise has posted a significant 55% rise in profit for the first half of its 2025 fiscal year, reaching £217.3 million, up from £140.6 million a year ago.

The increase highlights Wise’s strong expansion strategy, driven by a 25% rise in active customers, totalling 11.4 million consumer and business clients.

The firm, known for its low-cost international money transfer services, has also seen revenue jump 19% year-on-year to £591.9 million, signalling its successful market penetration.

Despite previous concerns about income growth, Wise’s performance indicates a robust positioning in the digital payments mark

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Revenue climbs 19% as Wise expands customer base

The profit boost for Wise aligns with a revenue increase of 19% over the previous year, taking its total revenue to £591.9 million.

This growth has been fuelled by Wise’s successful customer acquisition efforts, which have brought its consumer and business client base to over 11 million.

This impressive growth underscores Wise’s traction across both consumer and corporate segments, with the company leveraging its low-cost and efficient international transfer solutions to appeal to a broader market.

Share price surges as Wise maintains upbeat guidance

Shares of Wise rose by as much as 8% in early London trading on Wednesday following the earnings announcement, which investors took as a positive sign.

The company’s recent partnership with Standard Chartered also boosted market sentiment, as the collaboration could enhance Wise’s cross-border payment capabilities.

Wise’s share price had previously faced pressure after a June forecast downgrade, but recent positive performance has renewed investor confidence, pushing share prices higher.

Target profit margin reached despite previous pricing cuts

Wise managed to achieve an underlying profit before tax (PBT) margin of 22% in the first half, surpassing its target range of 13% to 16%.

This accomplishment is notable, as Wise implemented a series of pricing cuts earlier in the year, which had led to lower projected income growth.

Despite these reductions, Wise’s efficient cost management has allowed it to deliver a higher-than-anticipated PBT margin.

The company, however, indicated that pricing adjustments might reduce the margin closer to its target range by year-end.

Q2 income growth of 17% reflects sustained customer demand

In its most recent quarter, Wise reported a 17% increase in underlying income, a testament to its consistent customer demand.

The company’s guidance earlier in the year forecasted lower income growth, sparking concerns among investors.

Wise’s Q2 performance indicates a steady upward trend, which should reassure stakeholders about its continued appeal and pricing strategy effectiveness.

The steady income growth demonstrates Wise’s ability to balance pricing strategies with customer retention.

CEO fined by FCA amidst tax filing issue

Despite these positive financial results, Wise’s CEO Kristo Käärmann faced a setback, receiving a £350,000 fine from the UK’s Financial Conduct Authority for failing to address a tax filing issue.

This personal legal issue is unlikely to impact Wise’s operational momentum, but it has brought regulatory scrutiny to the company’s leadership.

Käärmann’s fine underlines the importance of transparent financial practices, especially as Wise continues to grow and attract attention in the digital payments sector.

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