WISE - Wise Plc - 752p

Lowest cost operator in a huge global market, growing north of 20%, at a reasonable valuation. Founder-led.

Wise Plc - WISE on LSE- Market cap £7.7bn at 752p, EV £6.8bn

DESCRIPTION

As of today, Wise Plc offers three core products: Wise Account, Wise Business, and Wise Platform.

The Wise Account enables individuals to hold, send, spend, and receive money in multiple currencies with transparent fees. The Wise Account includes the Wise card, which allows users to spend globally with low fees and real exchange rates. 

Wise Business provides similar services tailored for small and medium-sized enterprises, including invoicing and batch payments.

Wise Platform integrates Wise's payment infrastructure into banks and enterprises, facilitating fast and cost-effective international transactions. The business model focuses on leveraging its proprietary infrastructure to offer low-cost, efficient cross-border financial services

INVESTMENT CASE

Wise Plc's business model shares similarities with Costco's "scale economies shared" approach. The company is still founder-led, which we like due to the alignment of interests it ensures with us as shareholders, as well as the greater intensity and agility of operations that one tends to find in founder-led businesses.

Wise has built an international payment infrastructure that has the lowest cost per transaction among its peers by linking up its own unique network