Good day, and thank you for standing by. Welcome to the Wise Q3 Trading Update Analysis Investor Call. At this time, all participants are in a listen-only mode. After the presentation, there will be a question and answer session. To ask a question during the session, you will need to press star and one on your telephone and wait for an automated message stating your line is open. I must advise you that this conference is being recorded today, Wednesday the 19th of January, 2022 . I would now like to hand the conference over to your speaker today, Matthew Briers. Please go ahead.
Hi, good morning, everybody. This is Matt, the CFO of Wise. Thanks everyone for joining. Sounds like we've got a bunch of, quite a lot of people listening in. What I'm gonna do is I'm gonna give you an update on our Q3 results for this financial year, which is FY 2022. How did we do in October and November and December? As you know, we kind of have been doing these quarterly updates where we talk about what have we done in the quarter. I mean, from that perspective, as in, you know, what have we built? What happened to our volumes, our customers, our volumes, and also our revenues in the quarter. Let's start with what did we do?
Well, we actually continued to make kind of good, solid progress on our mission. What is our mission? Well, our mission, as you know, is to make moving and managing money across borders faster, easier, cheaper, and more transparent for everyone everywhere. What does that mean? Well, you know, core to that is actually making it cheaper and faster to move money around the world. In recent updates, we've spoken to you a lot about price. Over the last year, we dropped prices in around 50 of our currencies. We dropped them quite significantly, as you've seen. The customer price actually dropped from around 69 basis points, 0.69% a year ago to around 0.6%. For customers, this is a really big deal.
You've seen some of that flow through into our take rate. Actually, in the last quarter, we did make some price changes, but the biggest change is around speed, and we're really, really pleased with this. We think about speed as, like, what percentage of our transfers are instant. That is, if you imagine you've got your phone in front of you with the Wise app, and so you're on our Wise account. When you press Move Money or Send Money, how fast is it available in the recipient, the person you're sending it to's account? We think if it's there within 20 seconds available for you, that's pretty much instant. We actually moved the percentage of our transfers around the world that go instant from 40% to 45% in quarter.
I mean, nearly half of our transfers now are instant, which is really game-changing for this, the customers that need to move money around the world. It reduces anxiety and stress, and pretty much wows them with the experience they're getting on Wise. How did we do that? Well, no real silver bullets. Lots of work on operational efficiency. We managed to speed up how we can do security checks on our customers and resolving a bunch of technical issues, which actually caused these delays. For example, on payment to India, getting a lot faster. This is hard work that we invest in now that will pay off in the feedback and the kind of support and loyalty our customers give us in future.
This is actually, it's things like this that have helped drive our word-of-mouth growth and helped us grow. We also, we've spoken in the past about our Wise Account. Wise Account is really core to our proposition. It helps customers receive money, hold money, even start investing that money through our Assets product in the U.K.. Actually, obviously send money to themselves or their various accounts around the world. We launched this now in Malaysia with the Wise Account and the card. We also launched the Wise card in Canada and Brazil in the last quarter. It's very cool, right? This is things that we've done now that will hopefully kind of help us continue to grow in the future.
Also, for people who want to send money to China, actually for business customers, you can now make payments to China for many currencies. Actually, Alipay users, we have to send money to China from any supported Wise currency to an Alipay recipient. Now, obviously, there's a big opportunity. It's gonna take time, but actually, we're just slowly and steadily making it easier to move money into China. These are all things that we've invested our time and energy and resources in the last quarter. Which hopefully will continue to help us grow in the future. Actually, in this quarter, let's talk about what happened to our growth.
Remember, what we're seeing in this quarter is really a function of the things that we've been talking to you about over the last many quarters as we've been building in the company. In the last three months, we saw actually a significant increase in the number of active personal and business customers. We actually have over four million personal customers active on Wise, using our Wise Account, using our money transfer service, and using Wise to manage and move their money around the world. That's an 11% increase quarter-over-quarter, and shows actually for personal customers, 26% year-on-year growth. Actually, in business customers, we saw a 10% increase Q-over-Q as well. Just both across personal and business, we saw a good solid increase in the amount of active customers.
How did that translate to volume? Most notably in business, for business customers, we saw the amount of money that they moved increase. The average active business customer moved almost GBP 22,000 in the quarter. Obviously, a big increase Q-on-Q. We saw a 12% increase versus the previous quarter. Now, part of this we think is volatility. We have said before that we'll have quarters where customers move more, which can follow a quarter where they move less or can be followed by a quarter where they move less. People in businesses might have seasonality in how they move money.
It can be driven by their circumstances but also, for example, what's happening to rates and markets. We're cautious around expecting this 22,000 to continue. We'd rather kind of consistently look at what's happening to our businesses over time. One thing we are seeing is actually we've made it easier for businesses to send larger amounts over this period of time, which has helped contribute to this increase. What does that mean for volume? Well, you can see from the numbers that volume's actually grown to GBP 20.6 billion in this quarter, which is actually a big jump quarter-over-quarter following these trends in actives and volume per customer. Actually, increasing volumes 38% year-over-year. 32% for people and actually almost 60% still for businesses.
It's really strong fundamentals of continuing to grow our active customers through rolling out better proposition and, you know, as more of our customers love our product, tell their friends, recommend others and our marketing efforts grow the base. As our product grows, our Wise Account in particular, this is what's driving our volume growth. If you think about it, GBP 20 billion is an awful lot of money. On one hand, it's a small proportion of the actual total market. Actually to be growing, moving GBP 20 billion, but also growing about 40%, almost 40% year-on-year, we feel is quite on top. What happens to revenue?
Well, our take rate, and we've spoken about this in the last few quarters, is 73 basis points or 0.73% of the amount of conversion volume that we moved. Now we did say that was gonna decrease Q-on-Q, and it did. That's partly because the price structures we made in the previous quarter had a full quarter impact this quarter. The reason it declined is because the conversion price was what we dropped, but actually it's somewhat offset by good solid momentum in our Wise Account, which actually gives us other sources of revenue, which contribute to that take rate. Overall revenue grew 34% year-over-year, so almost GBP 150 million for the quarter.
What does that mean? Well, you know, we continue to work through this financial year and invest looking forward. From our guidance, we've shared in the note you'll have seen that actually we expect revenue for this year to growing around circa 30% year-over-year versus the previous year. We're not, we continue to expect our gross margin to come in at 65%-67% range. So that's what we've updated for our guidance for this financial year. Finally, we'll be heads down working on our financial results and our first annual report, which is exciting for us.
The next time we speak will be when we present that to you for our full year results, which will include the Q4 results in June. At this point I'll hand back to Martin. Love to hear any questions and hear what's on people's minds.
Thank you. Ladies and gentlemen, as a reminder, if you wish to ask a question, please press star and one on your telephone keypad and wait for the automated message for advising your line is open. If you wish to cancel that request, please press star two. Once again, it's star and one on your telephone if you wish to ask a question. Your first question today comes from the line of Adam Wood of Morgan Stanley. Please go ahead.
Hi, good morning. It's Adam from Morgan Stanley. Yeah, well, first of all, congratulations on a good set of numbers. Maybe just two questions from me. First of all, you know, you alluded to the volatility between quarters in terms of results. I guess, you know, a lot of investors have been asking us questions around, you know, competition in the markets. Is there any kind of correlation between the competition that you see and those volumes that you're getting in the business? You know, any change in the competition, and maybe particularly around some of the remittance players. You mentioned the GBP 20 billion that you've moved this quarter.
Could you maybe give us a little bit of a feeling of scale that you have versus some of those other players and how that's trended, please? Maybe just secondly, you talked about the you know, the amount the customers are spending with you and that seeing nice increases. Could you maybe just talk a little bit around when you get the card into business users or into personal users? I don't know whether there's kind of any anecdotal evidence you know, on the investment products, how that increases the engagement and how that can help you know, the rate at which customers are transacting with you. Thank you.
Great. Thanks for the questions. On competition, it's interesting, like that we moved around, as you said, GBP 20 billion we moved is just to put that in context, is a similar order of magnitude in dollars to some maybe what Western Union's moving. We need to look at the FX and just see how that's going. It's a significant number, and it's also significantly more than some of the kind of newer remittance companies that are moving on a quarterly basis, although they're doing a great job and growing well. What makes you think about that is like while we've grown from zero to GBP 20 billion over the last 10 years, actually most of that volume has come not from other remittance companies, but rather it's come from banks.
Actually, really, when you ask the question now, Adam, around competition, it's like how are we competing, continuing to compete against banks, basically. Most of our customers come from banks. They used to use their banks and now they're using Wise. Actually we haven't seen a material change at all in what banks are doing. They're continuing to high prices, high spreads in their rates, not really innovating on what they're offering. Where they are, they're trying to maybe integrate folks like Wise or others to try and move that forward. But when you look at Remitly, clearly some of them have a competitor offer, but it's quite a smaller scale typically. We do see at quite a higher price point. We've not dropped our prices to react to how others are pricing.
We're leading on price, and we're continuing to do that by charging a fair but just price to our customers. We think over time, this combination of our scale and that strategy is gonna make us, you know, extremely compelling for our customers and then obviously highly competitive in the industry over a 10-year horizon. Your question on card and what happens. Actually, maybe the data point to point to would be when we listed, we shared what happened for our Wise Account users. You can see for people who have or use the Wise Account, they tend to move maybe twice as much or significantly more volume than somebody who doesn't have the Wise Account. This is true for people and businesses.
They're much more active, and they send more volume through. The card, while it's a feature of the Wise Account, it kind of crystallizes the Wise Account. It's hard for people to think about having a bank account if you don't have a debit card. Actually putting the card in people's hands, or even virtually in their wallets is quite an important step and really brings the Wise Account much more useful for our customers, whether it's people spending, people when they travel or businesses paying some of their business expenses and distributing those cards to their customers. You can see that difference between a typical money transfer user and a Wise Account user.
You can see that actually as we launch our Wise Account around the world, we have more customers that use more that have great intensity for Wise and ultimately that's the driver volumes.
That's very helpful. Thanks very much.
Thank you. Your next question today comes from the line of Joshua Levin of Autonomous. Please go ahead. Your line is now open.
Hi, this is Joshua Levin from Autonomous. Hi.
Hi, Josh.
Thank you. A follow-up question on the competitive landscape. How do you see it evolving from the perspective of tech players like Facebook and PayPal? The second question is an update, any update on Mission Zero. Is Mission Zero still in effect? Is it still part of the company's strategic goal? Thank you.
Thanks. Thanks, Josh, for those questions. Tech, we saw Facebook start to experiment with some of their products. It's kind of been quite interesting to watch, but seems relatively small-scale. Our perception is that there's lots over the next decade, there's clearly lots of interesting technology that can come to bear to help, generally, payments or financial services or moving value or money around the world. We'll keep an interested eye on this. To date, we've not found that any of that technology is helping us move money faster, cheaper, or easier or anybody else at this stage really.
Like, yes, it's possible to move like a coin from one platform to another, but ultimately, these are really closed systems. The challenge that Wise is really solving is getting a fiat currency onto our platform and into another customer's account instantly, into typically another fiat currency, which is where the world is moving, how commerce is moving today around the world. Our focus in the near term is very much on building this infrastructure to solve these problems today. Now, in the future, could that change, like, and could technology, other technology players displace? Well, absolutely.
If that technology is useful, then it makes it easy, makes our life easier to move money faster, cheaper, we'll absolutely be using the technology. As to what we're seeing from the Facebooks or the PayPals today is like, we're not seeing anything that's there at scale, that we think could scale anytime soon that we should necessarily be thinking about. Rather we're focused on, like, you know, we feel like if you look at the banking infrastructure 10 years ago, we feel we've radically changed that to help money move much faster today, and we're already thinking, like, in 10 years' time, what does that look like?
At the minute, like the approach we're taking, we feel, around integrating directly into payment systems is what makes it faster, cheaper and easier for now. On Mission Zero, Josh, kind of follows that point actually, which is, you know, our long-term focus is how do we continue to drive down the cost of moving money around the world? Can we ever get that down to zero? That's a real challenge for us. It's a North Star that we continue to aim at. We'll continue to focus on how do we optimize away our costs. One thing's for sure is we're never gonna achieve that unless we do it sustainably by building a healthy cash-generating business model for our shareholders.
Now, you know, we're at 60 bits today as a customer price, and you see our payback around 73 bits. Like, we're a long way away from zero. A long, long way away. Like, can we get that down another 10 bits? Like, that's what we're very much focused on. Over what time horizon? I said it's gonna take us a long time. Like, one thing for sure is that if we're not focused on this Mission Zero, like, we feel that actually, like, we do focus on this overall mission and the discipline and the kind of discipline that we have in the business is really a function of having this mission. You know, you can see what that does for strategy.
You can see the things we're doing on our Wise Account, you know, that brings in other products, other forms of revenue and fees which help contribute to our investments that we're making. Hopefully you can start to see how that Mission Zero can play out in a healthy economic value creating way.
Thank you very much.
Okay.
Thank you. Your next question today comes from the line of Mohammed Moawalla of Goldman Sachs. Please go ahead.
Hey, Matt. Just for me, a couple. First of all, just I know you talked about the sort of volatility in quarter- to- quarter but I don't think you commented on kind of the medium-term outlook. How should we think about you know, the trajectory towards the medium-term goal, given you know, some of the kind of momentum you're seeing of the kind of price reductions, but also some of these kind of more strategic announcements we're seeing? Is there any sense around kind of your visibility improving around that kind of longer-term trajectory, particularly with some of the kind of share gains accelerating versus banks? Then the second question was just if you can give us a sense around sort of the product roadmap.
Obviously you sort of Wise Account, but you know, you have the kind of investment product, but what's kind of in the pipeline, and how should we start to think of the kind of contribution from them to sort of the outside of the direct kind of remittance related revenues you're earning? When could that start to have a more meaningful impact? Thank you.
Thanks, Mohammed. We're not changing or updating on our medium term outlook today. You know, we're focused on what's happened in this quarter. Well, we do have. To your point on volatility, like, definitely this quarter's a blend of we've seen a really strong kind of volumes come through, supported by what we've seen with business customers and just this good solid fundamentals on active customer growth. It's too soon for us to call on or to start thinking about medium term outlook at this point. We'll update on this at a later date.
The way to think about the volatility is like there's definitely an element of that in there, and we're cautious around people taking the expectation that this trend in B2C is an upper one. It's like I would look over the longer term cautiously at this point and look at some of the more fundamental trends in this. From a product roadmap, you're right on Wise Account. Like, it's really a big focus for us. Like, you know, in the U.K. we're all blessed with having, like, a pretty amazing experience on this Wise Account. We've now got the Assets product. For many countries we don't even have the Wise Account yet.
We're very focused, as you've seen in Malaysia, Canada, Brazil this quarter, in rolling that out and making that better and better, in many countries around the world. That would actually include rolling out Assets and maybe other products as well over time into this global footprint that we've already got. It's gonna take time, but we know it's worthwhile 'cause we know the impact that getting a Wise Account in people's hands has. As to your second question as to when would some of these other non-remittance, I think you mean by that non-conversion, cross-border money start contributing. Well, actually it already is. I think around 13% or 14% of our income is already from people's other fees that we charge on the Wise Account.
This will continue to grow over time. As we launch more products, they'll start contributing to our OpEx and our overheads and our ability to invest in our future growth. You know, hopefully what you've seen over the last two or three years of that continuing to grow, and it should give you a window as to what. Maybe to Josh's point around, you know, where does Mission Zero go? Well, actually you've already seen us kind of sustaining a healthy level of overall take rate while having some quite significant shifts in our customer costs.
Got it. Thank you very much, Matt.
Thank you. Your next question today comes from the line of James Goodman of Barclays. Please go ahead. Your line is now open, James.
Hi. Morning. Thank you very much. Hi, Matt.
Good morning.
Just, yeah, on the sequential volume increase which as you've alluded to is extremely strong, I think the strongest ever other than when you bounced back from COVID. As it relates to the increase that you've put through for the full year revenue guide, I mean, the way I'm looking at it, you'd need to have quite a meaningful sequential decrease in volume into the Q4 to bring the full year revenue growth down to the 30%. You've spoken a bit about volatility. I'm just wondering whether you really think that's sort of realistic or maybe I'm not being sort of sensible with other assumptions there around pricing or something else. The second question is just on the gross profit outlook for the year.
Clearly you had a very strong first half above the range that you've got for the full year. I wondered if you could remind us a little bit the reasons why you think that's going to sort of tick down in the second half, and whether the upside you've seen in revenue is supporting perhaps the higher end of that gross profit range at the very least for the full year. Thank you.
Thanks, James. Thanks for the question. I would tread carefully when we see a big jump in our volume per customer. We do see volatility, especially on a monthly basis in our business. Here we've seen pretty solid performance across a couple of months, but it's driven that on a quarterly basis through this quarter. I'm just cautious around setting any expectations that we'd see this continued, of course, strong quarter, though. Actually, like, at the start of the last quarter, if we'd have had this kind of volume in the next quarter, you know, I think our expectations were that was a very healthy quarter.
From what we're seeing going into the quarter and what we know from certain seasonality of what happens in January and February, which can be softer. As we've seen in previous years, like actually, we, you know, this gives us the reason for the focus. You're right, James, it's fundamentally around how much money people move in. We're not signaling anything radical that's gonna shift on our paper. Really like, you know, we think like continuing to tick up our incremental customers and volume on a steady incremental average over quarter-over-quarter is a good sensible way to look at this.
You know, if we ended up with this growth year-over-year on the big picture, I think you know, we need to look over the long term and look over longer periods and see these good underlying fundamentals of the business. On gross profit. Yes. So just as a reminder, like we had a 68% gross profit margin for the first half of the year, and we've guided to 65%-67%. So it's pretty straightforward to do the math in people's heads around what does that mean for the second half of the year. Now, the reason we have the 68% was, you know, when we drop prices, we do it because we can, not because we have to.
The reason we can drop prices is because we might engineer away certain costs. What we did in the first half is we engineered away a bunch of our trading effects and spread costs. Now, conservatively, what we do is we don't drop the prices until we're confident that we're seeing that over a period of time. Over that period of time, we've been generating high gross margins in that first half of the year. We drop prices going into the second half of the year, which has given us that gross margin would therefore come down to the target, hit the target level. That then gives us our full year guide. We're still very happy with that. We've dropped those prices.
We see very stable economics, and we're still generating that very healthy gross margin, which we are investing heavily in our growth.
Okay. Thanks a lot.
Thank you. Your next question today comes from the line of Omar Keenan of Credit Suisse. Please go ahead.
Hi, Matthew. Hi, Martin. It's Omar Keenan from Credit Suisse. Nice to see how the speed and convenience for customers is improving. Can I ask a question on the active customer growth, which was obviously very strong? Can you talk about marketing spend and virality? You know, how much is driven by word of mouth? Is the increase we've seen, is that driven by you know, word of mouth that is over and above the 57% number that you gave? Just secondly, is there any more color that you can give around you know, upcoming developments to the infrastructure or entrance into new markets? Thank you.
Very cool. On the upcoming developments to our infrastructure, actually, I might direct you, Omar, at our product roadmap, which we do publish. I've had a look at this, and this will hopefully paint a picture of what we're planning to build over the coming years. We actually do this to show, hopefully, we share this with our customers, but also people that'd be joining Wise, show what we'll be building. The way to think about that is it's gonna be a function of how do we roll out our Wise Account around the world and add features and make that more convenient to use. Then underlying infrastructure, which is really what helps drive price and speed.
There's lots of small things to build or improve, which eats away at this. You think about 55% of transfers, Omar, which are not instant. We've got quite a clear understanding of what drives that 55%, and there's a lot of things to integrate, disintegrate maybe, in order to drive that up over time. Hopefully that roadmap will give you a clear picture. It's gonna be around rolling out a Wise Account, building our platform so it's much easier to use for platform customers, and then building the underlying infrastructure as well. On your first question, what's been driving active customer growth?
Cian, our CMO and the team, has done an awesome job in the last quarter to continue to grow our spend, but actually doing it at a healthy paydown. I won't talk here on how much that's grown or how much we've spent. I'll do that in our results when we share those numbers. That said, you know, two-thirds of our customers historically have come through word of mouth. That's pure word of mouth referrals, but also our referral program. I really wouldn't guide how that's in any way changed. Actually, this growth has therefore come from people recommending Wise, but also, like, you know, we've had. You know, four million active personal customers in the last quarter.
We've seen an increase in the, in the percentage of our of our overall customer base. We think it'd be the, you know, I think it's over 11 or 12 million customers that have used Wise now, an increase in the percentage that are active in that quarter. Which is a function of the products, you saw. Have people got an increased need for Wise? Also a function of the work that the marketing team has done in bringing new customers in for our product. I don't think there's been a material change in the morality. What I'm saying is that it's still very high and still very healthy in that, you know, still we're a company that builds an awesome product.
Having an awesome product means that, you know, 2/3 of our customers that join us come through word of mouth, so we don't actually have to spend significant sums of money on marketing.
That's quite interesting. If I can just ask a clarifying question. What you're suggesting is that the quarterly actives are going up next to the annual actives?
I didn't say that. I said, and I'm not sure. I'm not saying that's true at all. Basically, the quarterly actives is, you know, 4.1 billion in active personal or 4.3 billion overall. It's the number of our customers that have ever used us that were active in this quarter. Essentially like, that's a function of two things, like the number of new customers we're bringing in, plus the number of our existing customers that are actually active in that quarter. When they're active, we think about them as moving money across borders. I mean, they could spend on their card domestically, but actually this is around people who've made a cross-border transaction.
That's great. Thank you. Thank you very much.
Thank you. Your next question today comes from the line of [Patrik Bajevic]. Please go ahead, Patrik, your line is now open.
[Patrik Bajevic from LanCap].
Good morning.
Good morning. Can you hear me?
Loud and clear.
Perfect. Well, first of all, thanks for taking my questions and well done for fantastic results. I've got three questions, if I may. The first question, can maybe give us a bit of a sense of how much of the incremental, volume or revenues for that matter in this quarter or this year for that matter, came from, your sort of legacy corridors within Europe and how much of it came from, let's say, newer corridors such as India, for example. The second question is about sort of the take rate dynamics, vis-à-vis your sort of what you charge to your customers.
We basically had a 2 basis point improvement in what you charge the customers, but we saw a decline in take rates by 1 basis point, so both on the business and the personal segment. Obviously, I assume this is due to mix effects. I can probably understand what the mix effects are within the personal space, but maybe can you give us an idea of how you're improving some of the mix within the business segments? And the last question is really about the development of your value volume per customer. In the personal space, we more or less have a kind of 3.7, 3.6 level where things have sort of settled down.
In the business segment, we have seen over the last few quarters a relatively slow but steady increase in what you're moving per customer. Can you maybe give us an idea of how far do you think this will can or will go? Or maybe put it another way, within the cohorts that you see, have you seen a natural limit of how much a business customer can move in maximum in a given year or quarter? And maybe give us some indication of what that number could be.
Cool. Patrik, thanks for your questions. Let me try and go one by one. Let me repeat the question for the listeners and to make sure. Where did the incremental actives come from, is the question? Did they come from legacy or volume come from? Is it legacy or actually new corridors? Legacy European. I'd actually say that if you look at our volumes that we move around the world, we move actually kind of pretty balanced volumes, whether it's from the U.K., from Europe, the rest of Europe or Europe as Europe would call themselves now we're out, apparently. Then places like the U.S. U.S. is significant volume. I wouldn't call the U.K. Europe legacy versus U.S.
U.S. is a solid corridor that we've been growing over time. We actually saw growth even in the U.K., like just healthy growth in our volumes. But importantly, like we've seen this across other markets, including, for example, the U.S. This is, you know, maybe seasonal, but also maybe the way we've evolved our products, whether it's the price or it's the ability for customers to onboard, the speed, the ability for customers to send larger payments. We've seen that across geographies. But I wouldn't say that this volume growth is a function of legacy markets growing slowly and is all coming from new routes.
Actually, we're still seeing this volume growth driven by our core routes, which are, you know, like these regions of the U.S., U.K., Europe and places like, you know, Asia Pacific. We're a long way from running out of steam in any of our routes, and we certainly wouldn't be thinking about them as legacy yet at all. We've got a long way to go to grow volumes in the U.K. and Europe. That said, we do see routes where we're starting to see some growth and, you know, like we plant seeds and plant flags in these markets.
Over time, as you've seen, I think in our perspective, you see these routes will grow, whether this is India or other routes, but they'll take time to ramp. The second question is what happened to take rate? You, it's very. The way I'll think that is pretty helpful, Patrick. We have dropped our customer price, but actually we didn't see that flow through to take rate. Take rate is a function of the price we charge our customers, but also the cross-conversion, but also the income that we're earning from other products like our card interchange, fees on the Wise Account, et cetera. There is some mix effect, but it's not too acute at the minute, but rather it's a function of those two things.
One is what's happening to that balance of like cross-border revenue and other revenue. Then there is inevitably a mix of that actually between personal and business customers. You know, the take rates on business customers is largely as a function of remix, as you said. But as the volumes from business customers at a lower take rate is growing faster, it will have a deflationary impact on the blended take rate. But that's good news. It means we're growing volumes very fast for business customers at a healthy growth margin into a massive market. The third one was how big could the VPCs for our business customers get? Wow.
Like, well, the thing to think about both personal and business customers, like the average business customer, which is, you know, think about the volume per average customer doesn't really exist, right? You've got some very small customers, you've got some medium-sized customers, and you've got some large customers. If you look at what's happened to our product over the last one, three, maybe five years, it's moved from the businesses. It's moved from a product where customers can actually themselves really only send one payment at a time. Actually a much more sophisticated product, and it's getting better and better over time. What that means is, yes, it's way better for small customers, even micro-businesses, even sole contractors. Actually it starts to get unlocked use cases for larger businesses.
Rather than, yes, we are making it easier for our existing business customers to send money, and hopefully we capture a greater share of their cross-border needs, but actually it will start becoming useful for larger businesses over time. To answer your question of how big could this go, you know, we've got customers, business, small, you know, business customers that are sending obviously multiples of this GBP 21,600 on a quarterly basis. There are customers out there, and there are segments of customers that move a lot more. Really, how far can it go is a function, Patrik, of how well can we start to address those larger customers and how much of a share now.
I'm not gonna put a cap on this, but I would obviously also create some caution as to like, let's be careful around assuming that we're gonna see this like 12% Q- on- Q jump every quarter, if you like. Like, it's amazing our business customers are moving more than GBP 20,000 with us. It's wonderful. It's hopefully a good sign of how useful the product is then.
Yeah. Thank you. That makes a lot of sense for me. Thank you.
Your next question today comes from the line of Aditya Buddhavarapu of Bank of America. Please go ahead.
Hi, can you hear me?
Loud and clear.
Great. Hi, this is Aditya from Bank of America. Thanks for taking my question. Just to follow up on, I think, some of the previous questions around the business side. I mean, you announced quite a few partnerships, sort of in the second half of last year, like Embers, Payfare, Fruugo. I'm just wondering, I mean, when do you sort of see those partnerships sort of, you know, coming into effect and when do you actually start to see, I guess, see the benefit from that? And maybe you've already seen some of that in the third quarter . Just to get a sense of, you know, how we should think about the upside from that. That's the first one. Second, again, on the business side, I mean, can you talk about the competitive landscape there as well?
I mean, I know there's a few players like Currencycloud, which recently got acquired by Visa, there's Payoneer, Nium, and a few others. Can you talk about what you're seeing there in terms of, again, what the competitors are doing? Finally, I know in terms of your, the customer cash balances, you tend to keep that in, you know, bank accounts or some very low-yield bonds. I mean, is there anything to think about sort of the sensitivity there in terms of the interest income if there's like a increase in, interest rates? Yeah, just those three for me.
Cool. Thanks. Thanks for the questions. On partnerships, we continue to build our partnerships team and our product, and we've kind of got good engagement with a range of partners over time. When we spoke at our listing, we talked around this being roughly 2% of our volumes. We're not disclosing this and breaking this out. Yeah, we think it's still something very much for the long term rather than the short term. I would say that the growth that we're seeing is really being the contribution from the core products, which is good news. These things are still, as we said, you know, certainly not legacy and still driving the growth over the short to medium term.
You know, we'll talk, you know, we have had some successes with partnerships with these partners continuing to integrate this. Just so people are clear, actually, the volume from partnerships, if it's a bank with personal customers, that volume would flow through into our personal volumes. If they're business customers of the bank or they're business customers, say, on a capital platform, they flow into our business volumes. The vast majority of our business volume that you see is actually small to medium businesses using it directly through our product. On the competitive landscape then, Aditya. I think what you mean there, Aditya, is like from our platform, it's like big banks or other API partners integrating Wise?
Exactly. Other players giving you APIs for business customers, yeah.
That's right. Exactly. There is good, healthy competitive landscape there, whether with the people that you mentioned. We continue to build our proposition in this space. One thing we care deeply about here is the reason that people contact us to try and use our platform is they might already see their customers using Wise, and that's quite compelling that for example, if you're a bank and you're looking at what's happening to your income from cross-border payments, you might see, well, it's reduced by a lot because actually a bunch of our customers are now using Wise directly. It's a very helpful discussion we can have with the banks to say, "Well, how can we help you bring those customers back onto your bank platform?
How do you like, let's say, talk hypothetically about Bank of America given your, you know, how can we help Bank of America instead of customers coming on to Wise, like, how do we help you get those customers back on your platform? You know, a business is nothing if it doesn't have customers. Like, actually, that's a very healthy discussion that we can have with these partners, which some of the other comparable companies can't because, like, they, you know, they don't have that direct consumer proposition as strongly as we do. Now, we need to build our platform product such that, you know, like, it works very well for that bank, and we're doing that, and we've had successful integrations.
That's gonna take time to continue to develop over time. There's no doubt about it, like this is a. You know, I see the competition, and I see the companies that are being invested in here. What it tells us is that, you know, banks in the future are gonna be using a variety of payments providers or other providers to execute their operating model. They're not gonna be building everything in-house. Like, there's clearly a direction of travel which, you know, banks are gonna be increasingly considering using other providers, maybe Wise, to do this in the future. The question then is, how do we build the best product which over the next five to 10 years, which means that we're the first choice for these partners? Yeah.
Yeah, the question on customer cash balance. Yes. Interesting. We do actually invest. When we have our balances around, say, GBP 5 billion in the last set of results, this is money that our customers, maybe some people on this call, they're actually holding in their Wise Account. Our job there for our customers is to keep it safe, which means safeguarding the money. It means keeping it available so that it's instantly available for our customers. Our job's not to really earn a yield on that. It's really rather to manage the risk for our customers, and we're not gonna accept the risk either. We do invest some of that in bonds, and they're typically government bonds and relatively short tenor as well.
What we do there is, once we have those bonds, then, you know, if the interest rates go down, we wouldn't earn income from them. If the interest rates go up, we might. But actually, that income is relatively small, and I wouldn't set expectations that that's gonna contribute to our business model. Actually, you know, pre-COVID, we were very happy when the interest rates dropped to zero, that we hadn't built a business model that depended on interest income from those balances because suddenly that would've gone away. Rather, we focused on how do we manage the risk, get the best product available for our customers, and if we do start to earn some interest income, then that's fine.
We certainly shouldn't build a business model that's dependent on that.
Great. Thank you.
Thank you. Your next question today comes from the line of Fredrik Windrup of Boldhaven. Please go ahead. Your line is now open.
Hi. Good morning, Matthew. Good morning, Martin. It's Fredrik from Boldhaven. I have two questions, please. The first one is on the non-cross-border revenues, the ancillary revenues. If we go back pre-listing, those revenue streams were about 3% of total revenues. Now you're saying it's 13%-14%. They're growing very fast, particularly in connection with the account and debit cards, as far as I understand it. Could you maybe talk a little bit about the growth drivers of that going forward, and in particular, talk a little bit about the attachment rates of both the Wise Account and debit cards between personal and business, please?
Yeah.
That's the first question, and then I have one more.
Okay, cool. Yes, so you're right. This is growing fast, and the way to look at that in our last results as well is if you see what's happening to our balances, which I've just answered Aditya's question on, continue to grow. These will tell you, like, the growth in the adoption of the Wise Account. We don't split this out, but ultimately, you know, we see customers in our Wise Account generating moving a lot of volume, and actually that's driving a lot of our volume growth as well. Which is why the Wise Account's important to us. It's a fundamental driver of our business, say, and it defines our product really for our customers. What are the drivers of that growth?
More and more people using the Wise Account. More customers joining us to use the Wise Account, more of our existing customers transitioning to use the Wise Account, and then using that account to spend on their card, make domestic payments. We have significant volumes of domestic payments, which in many markets we charge for. We charge an account fee to some businesses, we charge an account fee to some people, and we also charge people for things like taking money out of ATMs, et cetera. This is, Fred, what's driving that growth. It's like, it's kind of linked, if you like, to the growth of the Wise Account, which you can start to see in the balance growth and this other income growth. The attach rate question.
I don't have any new data here, but like, if you look back at the listing, you can start to see that more than 20% of our personal customers were using the Wise Account. Actually, over half of our business customers are using the Wise Account on a quarterly basis. That means, and this is why it's really useful, our businesses will start to tell us, "Hang on, I can send money, but actually I'm a business. I need to receive money from my customers," or, "I need to move money around my business because I've got accounts or entities around the world." Actually our product is really moved over this time from being a transfer business to essentially an international banking solution for these businesses. Well, that's what they're doing on our product.
They're holding money, they're receiving money, they're sending money. You know, more businesses are using us for that than just using us for pure money transfer. Really that's how to think of us as a product for our Wise product. Really remember, that's why we changed our name from TransferWise to Wise. Fred, I hope that gives you a flavor as to what's driving that other revenues, what's driving our balances, ultimately this Wise account. When you see us roll that out into Brazil or in Canada or Malaysia, it tells you that actually there's more of this. This is what's helping drive our rev now, but also will help us in the future as well.
That's very helpful, Matt, thank you. Just a quick follow-up before I jump into the other one. How many debit cards have you issued now, particularly after the launch in Brazil, Canada, Malaysia? And are there any early data points you can share from those three launches, please?
We haven't shared data points on these or the total numbers like our shadows now. You know, these times we launched these with our customers. The way we launch a product is we have people in the market already asking for the product, so we'll alpha and then beta with these customers, and then it will be after that that the business will slowly grow. We don't do big bang marketing in these markets. We rather just let this product build. That's what we've done in all of our markets. I don't have any numbers for you today. Sorry, Fred. Hopefully over time we'll start to get benefits from that.
Appreciate that, Matt. Just trying to sneak in this follow-up really to Patrik's question on the bank business VPC. As you think about growth in business going forward, and in particular how you're addressing perhaps slightly larger business customers that have more needs, how do we think about the marketing spend and the intensity of going after that type of customers? Is this still two-thirds viral, or do you need to perhaps invest a little bit more or beef up your enterprise sales solution, or function rather internally to go after that type of customer? Thank you very much.
It's a bit of both, actually. We will be spending more money on our on marketing across our base. We'll be doing it at a healthy payback. You know, in the past, this has been around 12 months. As we look at the economics of our business customers, we see actually that they spend more, they stick around longer. Actually the lifetime value of their customers is disproportionately higher than we're seeing on our personal customers. Which means we can invest more marketing, whether it's pure digital marketing or other forms of sales behind those. We'll be developing that over time. We'll do that in combination with our product growth.
Today, our business marketing challenge is really one of mass marketing to small business, small to medium-sized businesses. As you're right to call out that, as our product's evolving and we're starting to see much bigger customers start to use us. These are not large corporates, these are just larger. These are medium, not small businesses. Our marketing approach and our sales approach will evolve over time. You can trust that we do that at a healthy, as we've done in the last 10 years, you know, at a, you know, maintaining healthy economics. We're not. We're still investing at a sensible ROI.
Thank you very much.
Thank you.
We've got five or a couple of minutes left, so I'm guessing one or two questions then.
Okay, your next question today comes from the line of Kim Bergoe of Numis. Please go ahead. Your line is now open, Kim.
Morning, Matt and Martin. Thanks very much for taking my questions. I think they've been answered. There was lots of questions. But if I could just follow up, I had a question on the competition and market. I think you answered the competition bit. But just sort of the near-term outlook for, I guess, Q4 for the market, what are sort of driving the ups and downs? I mean, what should we expect, you know, obviously, with Omicron sort of impacting towards the end of.
Mm.
You know, this year and going into next, does that have an impact? That I think is what I've got left. Thanks.
Yeah. I hesitate to call the short-term impact of something like Omicron, which the COVID impact we saw was not so much suddenly people not needing to move money across borders. I think it was just a total lack of confidence in the way the world was gonna work in March and April 2020. We're seeing much less disruption from Omicron than we saw from the first wave. We have seen volatility. If people have got sudden confidence or not, you know, volatility in markets, we can see that flow through into our product. This is why we've seen volatility generally in the world, like in the last quarter. I would assume that our results have been a little bit volatile. I think what...
I think the challenge we've all got, and the important thing as always, is to really look longer term rather than just what our next quarter is like. Do we see good fundamentals in our business that's giving us confidence to keep investing in what we're doing over the medium term? The answer is yes, right? We're seeing just more and more customers, even in the most mature markets, continue to use us and adopt us and transition to us, seeing our proposition grow, so that actually, you know, for example, businesses moving more and more money through us over time. Yes, this is a very high quarter, but the general trend has been steady growth in the BPCs and businesses.
We're managing to drive down price, make our product radically faster, while still maintaining a healthy take rate and a very healthy set of economics. I think if you just take a step back and think about these three fundamentals and being able to do this while moving over GBP 20 billion in a quarter, I think it shows like just kind of pretty strong fundamentals to our business for the medium term. The things you've heard us roll out, whether it's our Wise Account in Brazil, Canada or Malaysia, these are still big markets, so they're having an impact in building a much better product that is around in the market that gives us confidence over the medium term, not just the next quarter.
These things are not gonna have zero impact the next quarter. It's rather like, hopefully we think about, okay, over this medium term, we're continuing to solve quite a big problem.
Oh, thank you very much. That's very clear. Thank you.
Thank you. Our final question today comes from the line of Grégoire Hermann of AlphaValue. Please go ahead. Your line is now open.
Hello. Can you hear me?
Yeah, okay.
Yeah. Hi, Grégoire.
This is Grégoire Hermann from AlphaValue. Thank you for taking my question. Just two very quick ones, and the second one is actually maybe you already answered. On Brazil, Canada and Malaysia, could you please say how you've improved in the direct connection to local payment system? I think if we look at the metrics you've provided in your perspectives, the more you go into the direct local connection, the more you're able to propose your own products and have a better control over the pricing and over the cost. How have you improved on these markets, on these countries? The second one, on the accounts card products, how much does this represent of your amazing growth during this quarter?
Would you say that at the moment, your growth is more driven by incremental clients or also the rollout of new products like accounts and cards?
Maybe I'll just the second one first while it's fresh in my head. Actually it's a bit of both. What we're seeing is that the strong driver of growth in our business is just the adoption of our product. Our product is that we're rolling out with our Wise Account. Our Wise Account, people are still moving money from, you know, if you wanted to send money to, say from the U.K. to the U.S. or vice versa, you can now do it through the Wise Account, and it's easier, it's more convenient. We're seeing people adopt that product at a faster rate, which is driving our growth, but it's also driving how they think of Wise and how they use Wise in their daily lives.
I'm not gonna share a proportion of the growth, but actually like it. The fact you can tell in our product roadmap, we're rolling out this Wise Account and it works. We know it works, and we know that in future, like having these customers have this tool, this money-moving machine for them, a money-management machine for them is what's really important. To your first question of what's changed really in these markets. In some instances it would be improving our infrastructure, but actually here when we launch the Wise Account, it typically comes about through a couple of things. It can be as a result of directly impacting into payment system, and that allows us to issue account numbers.
That can also come about through partnering with somebody locally that can help us issue those account numbers. Fundamentally as well, it typically comes from having access to a license as well. Like if you remember when we talked about our infrastructure, it's a function of the technology. It's a function of our integrations. It's a function of regulation and operations. Actually the regulatory piece is quite important because actually offering our Wise account typically means that we move from being just a money service provider to actually, in the U.K. it's an e-money institution and slightly different in different jurisdictions around the world. Actually getting that license is quite a challenge. That's what the team's been working. Just think about Brazil, it's taking years, and that's what the team's been working really hard on.
Brazil and kudos to the team for obtaining that. Once we've got that license, then we can turn on our Wise Account and transform our product. Actually, to answer your question, like building Wise is like a combination of all of those four things. You know, we'd hope that we can continue then in Malaysia to integrate directly into the payment system at some point in the future. Like it's step by step with the regulatory bodies and the partners in the country that it's gonna remain sustainable.
Okay. Thank you.
Thank you. There are no further questions at this time. Please continue.
Well, I don't have any questions either, but I would just say thanks very much for your time. Like we've you know, hopefully you understand that the growth that we're seeing now the things we're investing in now are gonna help our growth over the medium term. Hopefully you can see in our results what we've been investing in the past two, three, four years is really what's kind of turning up in our results today. That gives us confidence to keep investing in our growth and hopefully gives you confidence to keep investing in that with us, Sam. Thanks for your time.
We'll speak again in June when we have our full year financial results, which is great, and we'll obviously have an update on exactly on Q4 at that point as well. Thanks for your questions. I hope you have a good day and speak to you again soon. Bye-bye.
That concludes our conference for today. Thank you all for participating.