TransferWise marks its fourth year of profit with near doubling of revenues

By Oliver Smith on Wednesday 23 September 2020

Digital Banking

Turning a healthy profit on £42bn worth of cross-currency transfers last year.

TransferWise marks its fourth year of profit with near doubling of revenues
Image source: Kristo Käärmann (right)/TransferWise.

International payments group TransferWise has chalked up yet another year of profitable growth, turning a net profit after tax of £21.3m in the year ending March 2020.

The news comes from TransferWise’s annual report published today which also details a 70 per cent rise in annual revenue at the fintech to £302.6m.

Growth was driven by increasing transactions in the Asia-Pacific region along with a huge expansion in TransferWise’s business-to-business payments service, TransferWise for Business, which onboarded 107,000 new customers this year.

“Staying profitable as we grow is an essential proof point in this journey,” said CEO and co-founder Kristo Käärmann announcing the results today.

“We need to be able to scale globally while building a business that people can trust will be here for the long term. The numbers show that we’re continuing to do that, while staying focused on bringing our service to everyone that needs it.”

Käärmann noted that since March TransferWise has benefitted from an uptick in customers looking for alternatives to send money internationally, with overall transfer volumes continuing to grow.

The fintech processed £42bn worth of cross-currency transfers last year, and today is handling over £4bn in those transfers every month.

More recently the group completed a secondary share sale of $319m in July at a $5bn valuation, maintaining its position as one of Europe’s most valuable fintechs.

And in one of TransferWise’s most interesting pieces of news, the group was recently awarded new FCA permissionsin the UK to offer savings and investments products, with the company today confirming these will launch “in the next 12 months”.

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