We initiate coverage of Wise, a financial infrastructure platform for money transfers. The company is disrupting a large and underserved market of cross-border transfers with traditionally high costs of foreign currency exchange for customers implied by traditional banks. The volume of the international transfers market is estimated at £22.2trln in 2021, to be growing with c 4.3% CAGR between 2021 and 2028. The company, according to our estimates, controls c 3.5% of the market. The growing number of international migrants, currency volatility, and lifting Covid restrictions may contribute to the FX market volume growth in the medium term. In 2Q23 (ended 30 September 2022), Wise provided services to 5.5mn active customers which moved £27bn across borders (+50% YoY). The company develops financial infrastructure and delivers more than half of payments instantly in 2Q23. The key element of the company’s strategy is the focus on low customer prices while providing speed, convenience, and transparency of transactions. Wise’s partnerships with institutions in different countries help to reduce the fees of cross-border transfers, and FX rates for customers. The company said appx 90% of all transfers were completed within 24 hours. Multicurrency accounts, quick transfers and user-friendly onboarding and transaction experience make Wise service popular among individuals and businesses. At the same time, Wise does not hold a banking licence that excludes deposit/loan services compared to banks. Wise is moving fast to grow its customer base, establish its position worldwide, and increase market share in international transfers. At the same time, the company demonstrates profitable growth, compared to its peers.
21 Nov 2022
Wise - Disrupting underserved market
Wisetech Global Ltd. (WTC:ASX), 0 | Wiseway Group Ltd. (WWG:ASX), 0 | Wise Group (WISE:STO), 0 | WISeKey International Holding Ltd. Class B (WIHN:SWX), 0 | Wisesoft Co. Ltd. Class A (002253:SHE), 0 | Wise PLC Class A (WISE:LON), 788 | Wisec Global Limited (511642:BOM), 0 | Wise Group AB (WISE:OME), 0 | WISEiTech Co., Ltd. (065370:KRX), 0 | Wise birds Inc. (273060:KRX), 0 | Wise Ally International Holdings Limited (9918:HKG), 0 | Wisechip Semiconductor Inc. (5245:ROCO), 0 | ChinaAMC MSCI China A 50 Connect ETF HKD counter (2839:HKG), 0
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Wise - Disrupting underserved market
Wisetech Global Ltd. (WTC:ASX), 0 | Wiseway Group Ltd. (WWG:ASX), 0 | Wise Group (WISE:STO), 0 | WISeKey International Holding Ltd. Class B (WIHN:SWX), 0 | Wisesoft Co. Ltd. Class A (002253:SHE), 0 | Wise PLC Class A (WISE:LON), 788 | Wisec Global Limited (511642:BOM), 0 | Wise Group AB (WISE:OME), 0 | WISEiTech Co., Ltd. (065370:KRX), 0 | Wise birds Inc. (273060:KRX), 0 | Wise Ally International Holdings Limited (9918:HKG), 0 | Wisechip Semiconductor Inc. (5245:ROCO), 0 | ChinaAMC MSCI China A 50 Connect ETF HKD counter (2839:HKG), 0
- Published:
21 Nov 2022 -
Author:
Marina Alekseenkova -
Pages:
19
We initiate coverage of Wise, a financial infrastructure platform for money transfers. The company is disrupting a large and underserved market of cross-border transfers with traditionally high costs of foreign currency exchange for customers implied by traditional banks. The volume of the international transfers market is estimated at £22.2trln in 2021, to be growing with c 4.3% CAGR between 2021 and 2028. The company, according to our estimates, controls c 3.5% of the market. The growing number of international migrants, currency volatility, and lifting Covid restrictions may contribute to the FX market volume growth in the medium term. In 2Q23 (ended 30 September 2022), Wise provided services to 5.5mn active customers which moved £27bn across borders (+50% YoY). The company develops financial infrastructure and delivers more than half of payments instantly in 2Q23. The key element of the company’s strategy is the focus on low customer prices while providing speed, convenience, and transparency of transactions. Wise’s partnerships with institutions in different countries help to reduce the fees of cross-border transfers, and FX rates for customers. The company said appx 90% of all transfers were completed within 24 hours. Multicurrency accounts, quick transfers and user-friendly onboarding and transaction experience make Wise service popular among individuals and businesses. At the same time, Wise does not hold a banking licence that excludes deposit/loan services compared to banks. Wise is moving fast to grow its customer base, establish its position worldwide, and increase market share in international transfers. At the same time, the company demonstrates profitable growth, compared to its peers.