Based in the U.K. and traded on the London Stock Exchange (LSE: WISE), Wise is a global fintech company serving 13 million customers in over 40 currencies, facilitating £120 billion ($150 billion USD) in transactions annually. Formerly known as TransferWise and launched in 2011, Wise has attracted many large companies and banks to its innovative cross-border money transfer network.  Furthermore, the company has announced its intentions to be dual listed in the US.

Let us explain.

The origins of Wise were born out of the founders’ frustration with the high fees and hidden exchange rate markups charged by banks for international transfers. One of those founders was a former business consultant who engineered a peer-to-peer system to bypass traditional B2B international money transfer inefficiencies. By matching currency flows (e.g., euros to pounds and vice versa), the early-stage company enabled users to access the mid-market exchange rate with transparent, low fees. This model became the foundation of Wise’s mission: to create “money without borders” by making international transfers as fast, affordable, and seamless as possible. In its first year, it processed €10 million in transactions, and as of FY2025, Wise moves approximately £30 billion across borders each quarter. There is room to grow, all in, the international peer-to-peer remittance and B2B cross border market value is measured in the trillions of dollars annually

How does it work?

Wise’s competitive edge lies in its proprietary infrastructure, which provides a structural cost advantage, including word-of-mouth-driven customer acquisition. Independent comparisons have suggested Wise is frequently 50% cheaper and twice as fast as major UK banks and many other service providers for international transfers.

Wise initiates cross-border transactions without the foreign exchange mark-up of traditional money services businesses. The company maintains bank accounts in most of the countries it conducts business and as a result has streamlined the cross-border transaction process. For example, when a customer sends money overseas, a deposit is automatically made from the sender’s bank account through the Wise App to a Wise bank account in the initiating country; then, Wise sends a message to the Wise bank in the receiving country which then credits the receiving customer’s bank account. Consequently, funds are never delivered cross-border, but a intra-company network message is. Hence, foreign exchange fees are avoided–only a transaction fee is charged (usually 1-3% compared to a combined transaction/FX fee of 5% or more in some cases).

Products and Services.

Wise offers three core products: Wise Account, Wise Business, and Wise Platform. The Wise Account allows individuals to hold, send, receive, and spend money in over 40 currencies, with account details and IBANs for nine currencies. It includes a debit card for international spending without foreign transaction fees and offers opt-in interest-bearing accounts with FDIC insurance up to $250,000 through partnerships with banks like JPMorgan Chase and BlackRock. The Wise Business account caters to small and medium-sized enterprises, enabling cross-border payments, supplier transactions, and cash flow management in multiple currencies. Over 600,000 businesses use this service. The Wise Platform is an API-based solution that allows banks, enterprises, and fintechs (e.g., Monzo, Bolt) to integrate Wise’s payment infrastructure into their ecosystems, enhancing their cross-border capabilities. Wise is not a bank and does not lend customer funds.

Going Global.

The company operates in 170 countries through a worldwide network of regulatory licenses and partnerships, including Google Pay, Standard Charter and Morgan Stanley. Wise recently launched its services in Mexico, linking its population to the company’s global network. That country receives close to $55 billion annually in remittances from the US. Now two-way flows are possible with Mexico. In Hong Kong, the company rolled out the Wise Business account, enabling businesses to get paid globally. And in Latin America, Wise announced a partnership with Itaú Unibanco, one of the region’s largest banks, enabling instant cross-border payments directly from the Itaú app.  Wise continues to innovate and recently launched the popular Interest feature in Australia, helping more customers earn returns by placing their money in funds backed by government-guaranteed assets. Wise has built out a technology hub in Hyderabad to drive growth in India, leveraging recent office expansions in London, Tallinn and Singapore.

Performance.

In Q4 FY25 the cross-border volume was 39.1 £ billion, up 28% Y/Y, underlying income (Net Income) $350£ million, up 13% on a declining take rate to 0.53%, down 25%. Instant transfers were slightly higher at 65% of total. Investor concerns could be centered around a  declining take rate, competitive landscape and uneven worldwide economic landscape.  However, management appears to be handling these dynamics well, customer and transaction growth cures a lot of ills. For example, in FY2025, transaction and customer growth were up 15% and 23%, respectively.  If the pricing levels continue to be off set, and they look like they are, there is a ton of potential operating leverage in this model.