The 10-year-old money transfer company has expanded rapidly since the co-founders started it as a way to reduce the fees they paid to move funds between London and their native Estonia. In the 12 months to March 31 it reported a pre-tax profit of £20.4m, up from £10.1m in the previous year. Revenues rose 70 per cent to £302.6m.
It processed £42bn of cross currency transactions in the year to March, up from £27bn in the 2019 financial year. TransferWise says its aim is to make cross-border payments “transparent and eventually free”, but the average rate it charged on transactions edged up from 0.65 per cent of the amount sent to 0.68 per cent, which it said was because of investment in “underlying infrastructure”. The company does not provide a breakdown of its revenues by different business lines, but has put an increasing focus in recent years on products beyond its core consumer money transfer service, including business payments, partnerships with banks such as Monzo, and “borderless” current accounts.