TransferWise is rebranding as “Wise.”
The UK-based fintech, TransferWise, ramped up nicely. it handled more than £4 billion in cross-border payments from over 8 million customers. Last year, it reported a 70% rise in revenue.
This well-funded company wants to expand outside money transfers.
The rebranding was done ahead of its expected IPO. The company picked Goldman Sachs and Morgan Stanley to be its joint global coordinators.
The listing may happen in London later this year. But the details have yet to be finalized.
The rebranding may help to make an easier ticker. However, the changing of its name is also a reflection of how it moved from being a B2C international money transfer to build a cross-border payments network.
Faster and Cheaper International Banking
Its goal is to make international banking faster and cheaper. The company claimed that it has helped customers in saving £1 billion per year in lowered fees.
Recently, it launched its own credit card. It does offer investment products. It’s a move that allows customers’ cash balances to gain returns. It issued over 1 million debit cards.
Although its business is similar to a challenger bank, it has no intention to apply for a license to become a full bank.
Its Wise Platform is used by many fintech companies, like Zero, Monzo, and GoCardless, to serve their customers.
To stay profitable, it scaled globally while building a platform that people can trust. The company supports 2,500 currency routes. In July 2020, it was valued at $5 billion after launching a share sale worth around $319 million.
Across its 14 offices, the company has 2,200 staff.
It has become a go-to international payment platform. With its popularity, Wise became a prime target of Boris Johnson for a City flotation.
It was one of the companies that had talks with the prime minister to talk about its IPO goals before Christmas. It’s an important company to float in London considering its rapid growth worldwide.
The Cost of Sending Money Overseas
One reason Wise existed is that the founders, Mr. Hinrikus and Mr. Kaarmann, were frustrated about the rising cost of sending money overseas.
With the flotation, these founders will make them paper billionaires if the valuation is correct.
In 2017, the company stated that it was thinking about becoming a public company. At that time, the company hasn’t explored yet how to make it happen.
With the increasing tech flotations, Wise’s founders were persuaded to go public. Some of its shareholders were also optimistic about it.
In 2015, it became a unicorn that was worth $1 billion. It was richly valued compared to other fintech companions in the UK.
The company boasted that it didn’t just fix money transfer problems but it made the experience faster, cheaper, and more convenient. Despite its growth, the company’s mission remains the same. That is, to make money work without borders.
Wise’s exchange rates are more competitive as opposed to its competitors. That’s why when you use its platform, you can save a significant amount of money per transaction.