Wise Reports Strong Q1 Growth and Announces US Dual Listing Plans

Wise’s Transatlantic Ambitions Take Flight

Wise (LSE: WISE) just delivered a first-quarter performance that’d make any fintech founder smile – and simultaneously dropped a strategic bombshell that could reshape its global footprint. The international payments specialist is riding a growth wave while eyeing a bold transatlantic leap.

The Q1 Growth Engine: By the Numbers

Let’s cut through the financial jargon to what actually matters:

• £41.2 billion zoomed across borders through Wise’s pipes – that’s a hefty 24% year-on-year increase (27% after currency adjustments)
• 9.8 million active customers now trust Wise with their international money moves, up 17% from last year
• Customer balances swelled to £22.9 billion – a 31% surge showing people aren’t just moving money, they’re parking it with Wise too
• Underlying income hit £362 million (up 14% in constant currency) despite…

The Take Rate Tightrope

Here’s where it gets fascinating: Wise’s take rate (their cut per transaction) dropped to 0.52% from 0.64% last year. Normally that’d spook investors, but there’s method here:

• Strategic price reductions to capture market share
• Higher-volume customers (who get better rates) becoming a bigger slice of the pie
• Proof that Wise can grow revenue while lowering costs – the holy grail of scaling fintechs

It’s like a pub selling cheaper pints but making more money because the place is absolutely rammed.

The US Listing Gambit

The real headline-grabber? Wise’s proposal for a US dual listing. This isn’t just paperwork – it’s a multi-dimensional chess move:

• Capital markets play: Access to deeper liquidity pools and potentially higher tech valuations
• Brand rocket fuel: A Nasdaq or NYSE listing turbocharges stateside credibility
• Strategic alignment: CEO Kristo Käärmann explicitly linked this to becoming “the network for the world’s money”

Interestingly, they’re opting for dual listing rather than ditching London entirely – a vote of confidence in the UK market that’ll please Westminster. Shareholders (“Owners” in Wise lingo) apparently cheered the news.

Partnership Power Plays

While the listing plans dominate headlines, Wise has been quietly building fortress Europe:

• New tie-up with Raiffeisen Bank to power instant international transfers
• Freshly inked UniCredit deal (announced just this month)
• Wise Business launch in the Philippines – a strategic beachhead in Southeast Asia

This banking partnership strategy is becoming Wise’s not-so-secret weapon – turning potential competitors into revenue streams.

What Lies Ahead

Management’s guidance suggests confidence isn’t in short supply:

• Reiterated 15-20% constant currency underlying income growth for the medium term
• FY26 underlying profit before tax margin expected at the top end of 13-16% range
• That juicy customer balance growth (£22.9 billion!) creates compounding interest income opportunities

The only cloud? That shrinking take rate needs careful monitoring. But with volume growth this robust, Wise seems comfortable trading margin percentage for absolute pound notes.

The Verdict: Bold Moves Meet Solid Foundations

Wise is executing that rare double-play: delivering strong operational results while making transformative strategic moves. The US listing isn’t just about capital – it’s about planting their flag in fintech’s most competitive arena while telling the world they’re ready for prime time.

For investors, this quarter proves the core engine is humming. For competitors, it’s a warning that Wise isn’t content being just another payments player – they’re building the financial infrastructure of the future. One transatlantic listing at a time.