shift in Wise's revenue composition
In the final quarter of the financial year 2025, Wise, the digital money transfer service, is bracing for potential challenges from foreign exchange changes, interest rate drops, and growing competition, particularly from competitors like Revolut.
Despite these anticipated hurdles, Wise has reported a robust performance in Q3 2024. The company has seen particularly strong adoption in Brazil, leading to the launch of new services for microbusinesses based in the country.
Wise's revenue model continues to be front-loaded, with a significant portion coming from cross-border revenue, cards, and other segments. In Q3 2024, the company's revenue excluding interest rose 12% to £311m, and the underlying revenue grew 13% YoY to £349.5m in Q4 2024.
Consumer and business volumes grew by 23% and 26% respectively, with consumer balances rising 31% to £9.8bn, and business balances jumping 19% to £6.4bn. The number of transfers taking place instantly on Wise increased by four percentage points to 65% in Q4 2024 (Q3 2025).
Cross-border volumes rose significantly, by 24%, to £37.8bn. The Cards and Other segment saw the biggest growth, growing 39% and accounting for 28% of Wise's underlying revenue.
However, it's worth comparing Wise's pricing with competitors like Revolut to help make informed decisions. Here's a summary of the key points based on recent data:
| Aspect | Wise | Revolut | |---------------------------------|----------------------------------------------|--------------------------------------------| | **International payment fees** | From **0.57%**, based on currency, destination, and payment value | Up to **5%**, depending on account type and transaction value | | **Supported currencies** | 40+ currencies | 25+ currencies | | **Supported countries** | 140+ countries | 150+ countries | | **No-fee international ATM withdrawals** | Up to monthly limits, then low fees | No-fee for in-network ATMs, but up to 2% fee for out-of-network ATM withdrawals | | **Local account details** | Available for 8+ currencies; includes SWIFT details | Varies, check in app for local and SWIFT details | | **Account type fees** | Always charges fees on transfers (transparent pricing) | Free for first ~1250 CHF per month in some cases, after that fees apply | | **Exchange rates** | Uses interbank exchange rates | Exchange rates start from 0.4%, with up to 1% extra for weekend transfers | | **Business accounts** | Yes | Yes |
Wise generally offers lower international payment fees, starting from 0.57%, which can be more cost-effective especially for larger amounts or frequent transfers. Revolut offers some free transfer limits (e.g., first 1250 CHF per month free during weekdays) but fees can rise to as much as 5% depending on the transfer size and account type.
While Revolut includes additional perks and features, aiming to be a financial "super-app," this can add complexity and may increase costs in some scenarios. For ATM withdrawals, Wise offers some free limits with low fees afterwards, while Revolut charges fees for out-of-network ATM usage.
Both platforms have personal and business accounts and are fully regulated. In brief, Wise is usually more cost-effective for international money transfers and users needing multi-currency accounts with transparent fees, while Revolut may be better for smaller amounts during weekdays or users wanting additional app features and perks.
As Wise moves forward into Q4 2025, its moves to diversify, such as the international white label Wise Platform product, now being used by Morgan Stanley and Standard Chartered, could become increasingly important in the face of FX changes, expected drops in interest rates, and growing competition.
[1] Data source: Wise Q3 2024 earnings report and Revolut's official website. [3] Data source: Comparison based on publicly available information from both Wise and Revolut.
In the rapidly evolving business landscape of technology, Wise, a digital money transfer service, is planning to apply technological advancements to address potential challenges from interest rate drops, FX changes, and competition, particularly from Revolut, in the final quarter of the financial year 2025.
While Wise and Revolut both offer personal and business accounts and are fully regulated in the sphere of finance, Wise's competitive edge lies in its lower international payment fees that start from 0.57%, making it a cost-effective choice for large amounts or frequent transfers, especially in comparison to Revolut which can charge up to 5% for transfers beyond certain limits.
