Wise Group plc, Owner Relations, 1st Floor, Worship Square, 65 Clifton Street, London, EC2A 4JE
08 October 2026
By email: info@theshareholdersboard.co.uk
For the attention of: The Shareholders Board
Re: Questions from your members following our Q1 FY2027 trading update
Thank you for your letter dated 3 August 2026. We understand you intend to publish our response in full, so we are replying on a public basis and only with information we are content to treat as public. In addition, we have added a customary Disclaimer as an addendum to this correspondence that references how investors should treat certain forward looking statements.
Below are your precise questions as transmitted (in bold) and our response to each.
1. How much of the recent deceleration in constant-currency volume growth reflects comparison effects, and how much reflects maturity in personal cross-border? How do you expect the personal and business growth mix to look at the 2030 horizon?
We do not attempt to attribute quarter-to-quarter changes in constant-currency volume growth precisely between “comparison effects” and “personal maturity”, but both can play a role. The comparison base stepped up as volumes scaled quickly through FY26 (e.g., Q1 FY26 cross-border volume grew ~31% YoY in reported dollars, vs Q1 FY27 constant-currency growth of 24% / reported growth of 26%). Concurrently, our personal business is larger and therefore can naturally moderate as it scales—while still growing strongly (Q1 FY27 personal volume +21% YoY)—and business continues to expand faster (+39% YoY).
In the context of our long-term mission to build “the network for the world’s money”, we view sustained growth in customers and volumes as beneficial and supported by many use cases across people, businesses and banks globally; we also continue to fuel growth through ongoing product and geographic rollouts (e.g., new market expansions, as announced in Thailand recently) and scaling distribution via partnerships.
We would caution against over-interpreting quarterly growth “deceleration/acceleration”: it can be influenced by seasonality, FX/activity levels, product launches, Wise Platform ramp timing, and changes in customer engagement.
On the 2030 horizon, we do not guide to a specific personal/business mix. Based on current trajectories, we would expect (i) personal remaining a large and growing base, and (ii) a greater contribution from faster-growing areas like business and partner/platform flows over time, alongside new products/market rollouts, rather than growth depending on any single segment.
2. The FY2027 take-rate glide is committed well in advance. What evidence would cause you to slow or accelerate it, and how do you measure the volume elasticity each basis point buys?
While certain customer cohorts could exhibit short-term volume elasticity among price-sensitive customers, Wise’s price reduction strategy is not managed as a quick lever for basis-point elasticity. Instead, price leadership is a long-term strategic investment designed to widen the corporate moat and expand our addressable market.
When evaluating our pricing trajectory, we focus on five core structural returns:
- Expanding TAM into High-Volume Segments: Lowering transaction fees unlocks larger SME, enterprise, and institutional flows (i.e. £10m–£100m+).
- Widening the Competitive Moat: Driven by continuous reductions in unit cost; price cuts expand our competitive advantage, forcing legacy providers and competitors to risk either losing market share or unprofitably cross-subsidising rates.
- Driving Retention & Brand Advocacy: Investing in price integrity builds long-term customer trust—retaining users through the trust that they will always receive the lowest possible price—while fostering advocacy that fuels organic, word-of-mouth growth.
- Lowering Customer Acquisition Costs (CAC): Passing scale and cost efficiencies directly back to customers may keep organic acquisition high and structural CAC lower than peers.
- Default Infrastructure Partner Choice: Widening the cost and price gap makes it increasingly logical for banks and enterprise platforms to partner with us as the premier cross-border infrastructure rather than attempt to compete.
3. What is the current cost of acquisition per new customer compared with previous periods, and how much of current growth is driven by price-led acquisition rather than organic brand awareness or referral?
Wise has historically seen a large share of new customers coming through word of mouth, which supports organic acquisition alongside paid channels. Specifically, we believe approximately 60-70% of new customers over many years have come to Wise as a result of ‘word of mouth’ e.g. recommendations from existing customers.
While the Company does not disclose specific customer acquisition cost (CAC) metrics by target customer, we can affirm Wise has demonstrated a 5x long-term value of customer to cost of customer acquisition ratio. This strong metric is in part a result of Wise’s reference-driven customer growth and a demonstrated commitment to being a leader on price, speed and transparency.
Finally, we apply financial discipline to marketing investment decisions: we underwrite marketing initiatives to a 20% internal rate of return hurdle, with payback targets of around 15 months for personal customers and 22–24 months for business (SMB) customers.
4. Do you expect to be able to maintain your net interest margin, on a net or underlying basis, if interest rates start easing?
Interest income is inherently sensitive to central bank rates and to the level and mix of customer balances we hold. Because Wise largely operates under e-money (and similar) regulatory regimes, customer cash must be safeguarded in highly secure and liquid instruments, so the yield we earn tends to track the relevant policy rates of the currencies our customers hold, rather than being driven by taking material duration or credit risk.
Our interest rate framework is designed to partially counter interest rate cyclicality. The company retains the first 1 per cent of interest income to cover operating expenses associated with the account product. Above this amount, interest income is consistently split 20%/80%, with the former flowing straight to company earnings and the remaining 80% paid back out to Wise customers (subject to local operational and regulatory hurdles in certain jurisdictions on paying interest). Therefore, if rates fall, Wise would expect gross interest income to reduce, and the net economics will depend on where rates settle relative to that 1% level, the currency mix of balances, and any changes to interest paid to customers.
As a guide to understanding the impact of central bank rate changes under this interest rate framework, based on customer balances (held at the end of H1 FY26, or September 2025), a 25 bps simultaneous reduction/increase in central bank rates from their prevailing position at the time would reduce/increase net interest income, net revenue and income before tax by approximately £40m per year.
In Q1 FY27, customer balances were $31.0bn (+24% YoY) and interest income on customer balances was $225.4m (+15% YoY), illustrating that the line item is also influenced by balance growth and mix, alongside rates.
For FY27, Wise reiterated guidance assuming no material changes in central bank rates and no material change in interest paid to customers.
5. How is the current legal scrutiny in Europe affecting your ability to maintain banking partnerships or expand in key regions?
6. Have you seen any material impact on time-to-onboard for new customers, or any increased de-risking by your partner financial institution?
Answering both 5 and 6: Wise operates in a highly regulated environment and we take preventing and combating financial crime extremely seriously. In our public statement addressing recent Belgian press reports, we explained that Wise Europe has been engaging with the Brussels prosecutor to respond to queries, as we routinely do with regulators and law enforcement authorities, and we provided context on how EEA passporting can result in requests being consolidated in Belgium.
We do not comment beyond our public disclosures on specific ongoing matters or individual cases (including where we are subject to legal restrictions on disclosure).
We continue to invest in compliance, onboarding and operational resilience, and we work closely with our partners, regulators and law enforcement as part of normal operations.
Growth has continued at a strong pace with our most recent quarterly cross-border volume growing 26%, active customers up 21%, customer holdings increasing 31%, transaction revenue increasing 27% and net revenue 25% (all on a YOY basis).
7. Is the next leg of growth mostly about Platform scaling toward the 50% ambition through more bank partnerships, or is there more room in taking Assets, or something like it, into more markets first?
Wise’s continuing growth journey will be underpinned by an intentionally diversified revenue base across products, customer types and geographies, which gives us multiple levers to scale in parallel. For example, in FY26, ~50% of net revenue came from non cross-border sources (card/other and net interest), and ~a quarter of transaction revenue came from business customers; geographically net revenue was also well spread across Europe ex-UK ($713.2m), UK ($586.3m), Asia-Pacific ($515.9m), US ($365.2m) and Rest of World ($322.2m).
Against that backdrop, we expect to keep progressing on both fronts: Platform scaling through additional bank/partner integrations (partner flows were ~6% of cross-border volume, with an ambition to grow this over time, targeting 10% by end of decade), while also continuing to expand holdings/Assets where licensing allows (e.g., Q1 FY27 customer holdings $41.2bn +31% YoY and assets under custody $10.2bn +55% YoY). In other words, Platform can be a meaningful distribution accelerator, but growth resilience comes from having several engines running at once rather than relying on any single product rollout.
8. What are your reflections so far on the Nasdaq listing?
We have said publicly that the Nasdaq listing was intended to increase Wise’s visibility, including in the US, and to support engagement with a broader investor base. Approximately 40% of trading volume has migrated to Nasdaq and that portion has been increasing based on recent analysis of 30, 60 and 90-day comparative trading volume between London and Nasdaq. We are highly encouraged by the dialogue and research coverage the Company is receiving in the US. We remain focused on executing our strategy and updating the market through our regular reporting.
Thank you to you and your members for your continued interest in Wise.
Yours faithfully,
Investor Relations
Wise Group plc
owners@wise.com
Addendum: Disclaimer
This document and any accompanying materials or presentation may include forward-looking statements, which are based on current expectations and projections about future events. These statements may include, without limitation, any statements preceded by, followed by or including words such as “target”, “believe”, “expect”, “aim”, “intend”, “may”, “anticipate”, “estimate”, “forecast,” “plan”, “project”, “will”, “can have”, “likely”, “should”, “would”, “could” and any other words and terms of similar meaning or the negative thereof. These forward-looking statements are subject to risks, uncertainties and assumptions about Wise Group plc and its subsidiaries. In light of these risks, uncertainties and assumptions, the events in the forward-looking statements may not occur. Such other risks include, but are not limited to, those identified in “Item 3.D. Key Information—Risk Factors” of the Company’s Annual Report on Form 20F for the fiscal year ended March 31, 2026 filed with the Securities and Exchange Commission (the “SEC”), which are accessible on the SEC’s website at www.sec.gov Past performance cannot be relied upon as a guide to future performance and should not be taken as a representation that trends or activities underlying past performance will continue in the future, and the statements in this report speak only as at the date of this report. No representation or warranty is made or will be made that any forward-looking statement will come to pass and there can be no assurance that actual results will not differ materially from those expressed in the forward-looking statements. Wise expressly disclaims any obligation or undertaking to update, review or revise any forward-looking statements contained in this report and disclaims any obligation to update its view of any risks or uncertainties described herein or to publicly announce the results of any revisions to the forward-looking statements made in this report, whether as a result of new information, future developments or otherwise, except as required by law. This document and any accompanying materials have been delivered to interested parties for information only. Wise gives no undertaking to provide the recipients with access to any additional information or to update this document and any accompanying materials, or to correct any inaccuracies in it which may become apparent. To the maximum extent permitted by applicable law and regulation, Wise disclaims all representations, warranties, conditions and guarantees, whether express, implied, statutory or of other kind, nor does it accept any duty to any person, in connection with this document. Without prejudice to the generality of the foregoing, Wise does not warrant or represent that the information or opinions contained in this document are accurate or complete. To the maximum extent permitted by applicable law and regulation, Wise shall not be liable for any loss, damage or expense whatsoever, whether direct or indirect, howsoever arising, whether in contract, tort (including negligence), strict liability or otherwise, for direct, indirect, incidental, consequential, punitive or special damages arising out of or in connection with this document, including (without limitation) any course of action taken on the basis of the same. The estimates, strategies, and views expressed in this document are based upon past or current market conditions and/or data and information and are subject to change without notice. Past performance is not indicative of future results. Recipients should consult with their own legal, tax financial and other professional advisers prior to taking any action in connection with this document.