British fintech company Wise has reported an impressive 55% increase in profit for the first half of its fiscal 2025, driven by a surge in customer growth and a notable expansion in market share. The company, which specializes in international money transfers, announced a profit of £217.3 million, up from £140.6 million in the same period last year. This stellar performance reflects Wise’s growing presence in the digital payments space and its ability to capture a larger share of the market.

Strong Customer Growth Fuels Success

One of the key drivers of Wise’s profitability is its substantial growth in active customers. The digital payments firm reported a 25% year-on-year increase in active users, reaching a total of 11.4 million customers, which includes both individuals and businesses. This growth indicates that Wise’s customer-centric services and competitive pricing are resonating well with users across the globe.

Wise, which allows people and businesses to send money abroad at lower fees compared to traditional banks, has steadily increased its customer base, thanks to its reputation for transparency and lower transfer costs. The 25% rise in active customers comes at a time when the global demand for digital payment services is expanding rapidly.

Revenue Surge and Market Reaction

In tandem with the profit boost, Wise reported a 19% year-on-year increase in revenue for the period, which climbed to £591.9 million. The company’s strong financial performance has had a positive impact on its stock price, with shares soaring by as much as 8% following the announcement.

This surge in stock value was further bolstered by a recent partnership with Standard Chartered Bank, which will use Wise’s technology to power its cross-border payments offerings for retail customers. As of the latest market data, Wise’s shares were up by almost 6% in the early morning hours of Wednesday, reflecting investor confidence in the company’s trajectory.

Investment in Pricing and Profit Margins

Despite the positive results, Wise has been cautious in its forward guidance. Earlier this year, the company had issued a sales warning, lowering its growth expectations for the fiscal year. However, it still anticipates an underlying year-on-year income growth of 15% to 20% for its fiscal 2025, a more conservative outlook compared to the 31% growth it experienced during the fiscal year ending in March 2024.

The company attributes the slower growth forecast to a series of price reductions aimed at increasing customer retention and widening market share. Wise has said that it is committed to ensuring that its pricing remains competitive, even if it impacts short-term margins.

Nevertheless, the company’s underlying profit before tax (PBT) margin for the first half of fiscal 2025 came in at 22%, well above its target range of 13% to 16%. While Wise anticipates that its investments in pricing reductions will likely bring the margin closer to the target range in the second half of the fiscal year, this still reflects a strong operational performance.

CEO Kristo Käärmann Faces Fine Over Tax Filing Issue

In other news, Kristo Käärmann, Wise’s CEO and co-founder, recently made headlines after being fined £350,000 by the U.K. Financial Conduct Authority for failing to report an issue with his tax filings. This fine has drawn attention to some of the regulatory challenges that the firm has faced, although it has not significantly impacted investor sentiment or its overall performance.

Looking Ahead: A Focus on Sustainable Growth

Despite the challenges posed by the evolving regulatory landscape and ongoing adjustments in its pricing strategy, Wise remains confident about its long-term growth prospects. The company continues to position itself as a leader in the digital payments sector, with its sights set on further expanding its customer base and improving its product offerings.

In a statement, Wise emphasized its commitment to sustainable growth, reiterating that it would not have to make any further “material investments in reduced pricing” in the second half of the fiscal year. The company also highlighted its focus on improving user experience and expanding its product offerings to maintain its competitive edge in the global market.

Wise’s success in the first half of fiscal 2025, paired with its expanding customer base and profitable growth trajectory, showcases the company’s resilience and ability to adapt to an ever-changing market. As the digital payments space continues to grow globally, Wise is well-positioned to maintain its leadership role, making cross-border money transfers faster, cheaper, and more accessible to people around the world.

Meta Description: British fintech giant Wise posts a 55% profit surge in H1 2025, powered by rising customer numbers and expanding market share. Despite a soft earnings forecast, the company is on track to meet growth expectations.