UK payments stock Wise (LSE: WISE) is well off its highs at the moment. After trading above 1,100p in 2025, it has fallen back to around 910p.
Is there an opportunity to consider here? Analysts at JP Morgan seem to believe so – they have a 12-month price target of 1,300p.
Wise continues to grow
While Wise’s share price may not have a lot of momentum right now, the underlying business does. Recently, results have been strong.
For example, Q1 FY2027 results, which were posted on Friday (17 July), showed:
- Net revenue of $714m, up 25% year on year
- Cross-border payments volume of $69.3bn, up 26%
- Active customers of 11,863m, up 21%
- Customer holdings of $41.2bn, up 31%
Looking ahead, the company said that it expects revenue growth of 15%-20% for the current financial year, assuming no material change in interest paid to customers and no material changes in interest rates.
“This quarter almost 12 million people and businesses used Wise to move $69.3 billion across the world.”
Wise Co-Founder and CEO Kristo Käärmann
Keeping customers locked in
It’s worth noting that Wise lowered its fees again during Q2. Its cross-border take rate fell to 0.5% versus 0.52% a year earlier.
A lot of investors don’t like the fact that the company keeps lowering its fees as it gets bigger. What they don’t realise, however, is that this is increasing customer loyalty.
Multiple revenue drivers
Aside from this ‘scale economies shared’ business model – which has worked really well for companies such as Amazon and Costco – one thing to like about the company is that its revenue is becoming more diversified.
No longer is Wise just taking a chunk of every payment it sends across the world. Today, it can generate revenue from multi-currency account balances, debit cards, and white-label payments solutions.
Looking ahead, small business payments could be a major source of growth. These are only around 6% of its total payments at present.
Ultimately, this company looks very scalable. And with the price-to-earnings (P/E) ratio sitting at near 20, it’s not particularly expensive.
What are the risks?
Now, while Wise has a really strong offering, competition from rivals remains a risk. Revolut is one competitor to keep an eye – it’s growing quickly and aiming to build a financial ‘super app’.
Money laundering fines are another risk. While Wise is doing everything it can to stop money laundering, it’s always going to be hard to completely stop criminals from using the platform to send money.
Significant profit potential
Overall though, I see the stock as an attractive proposition today. I believe it’s worth considering for an ISA or SIPP.
Note that if JP Morgan’s price target of 1,300p were to be hit, a £5,000 investment today could be worth around £7,143 in the not-too-distant future. Could that kind of profit potential deserve a closer look?
Should you invest £5,000 in Wise Plc right now?
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Edward Sheldon owns shares in Wise, Amazon, and JP Morgan.
