Money transfer firm Wise raises revenue growth outlook as cross-border volumes jump

Oct 16 (Reuters) - Money transfer firm Wise said on Thursday it expects full-year revenue growth to come in at the upper end of its target range after strong customer growth and higher cross-border transaction volumes boosted second-quarter revenue.

• Wise now expects fiscal 2027 net revenue growth near the upper end of its 15% to 20% target range and maintained its income-before-tax margin outlook near the top of its 20% to 25% range

• The update reflects rising demand for low-cost international payments as consumers and businesses move more money across borders and hold more funds on digital platforms

• Cross-border payment volumes rose 22% to $71.7 billion, while active customers increased 20% to 12.5 million

• However, the cross-border take rate, a measure of revenue earned from each dollar transferred, fell to 0.49% from 0.52% a year earlier as the company cut prices to attract new customers

• Wise has been expanding its global payments network, but its US growth ambitions suffered a setback in July after regulators denied its application to create a national trust bank. The company said it intends to reapply for the licence

• Net revenue grew 21% to $739.1 million during the second quarter, while customer holdings rose 28% to $43.5 billion

(Reporting by Atharva Singh in Bengaluru; Editing by Janane Venkatraman)