Wise (formerly TransferWise) is one of those rare fintechs that didn’t just chase hype but built something genuinely useful. Founded in 2011 by two Estonian friends living in London, Taavet Hinrikus (who, fun fact, was Skype’s very first employee) and Kristo Käärmann, Wise set out to fix a painful, universal problem: hidden fees and bloated exchange rates in international money transfers.

Fast forward to May 2025, and Wise now has over 15.6 million active customers moving £145+ billion a year across borders. With products spanning personal accounts, business tools, and a powerful API platform, Wise has quietly become one of the most influential fintechs out there; without ever pretending to be a bank or throwing out the word “disrupt” every 10 seconds.

Let’s break down their journey; one “up” or “down” at a time.

A Personal Pain Becomes a Global Product

Year 2011. Two Estonian guys in London, tired of bank fees, started exchanging money with each other; one got paid in euros, the other in pounds. They matched exchange rates, avoided fees, and thought… “Hey, why isn’t everyone doing this?”

How they pulled it off: They built a peer-to-peer platform that made this smart workaround available to the masses. No markups, no mystery fees; just real exchange rates.

Lesson for fintech startups: Your pain point might be someone else’s too. Solve it well enough, and you’ve got a business.

From Side Hustle to Hottest Startup

Within a year, TransferWise moved €10 million. Not bad for a project born out of frustration. By 2015, they were shifting over £500 million a month. Investors noticed. Peter Thiel’s Valar Ventures came on board, and Richard Branson gave it the thumbs-up too.

How they did it: Smart marketing (like mock “protests” in London), solid UX, and a laser focus on one product done extremely well.

Lesson for fintech startups: Simplicity scales. Nailing one valuable use case can open doors.

Actually Profitable

Unlike many fintechs burning through VC cash like it’s bonfire night, TransferWise quietly hit profitability in 2017.

How they did it: Sustainable margins, customer loyalty, and resisting the temptation to expand too fast or too wide, too soon.

Lesson for fintech startups: Profitability isn’t just possible — it’s a moat.

Wise Up: The Rebrand

TransferWise wasn’t just about transfers anymore. With business accounts, debit cards, and multi-currency features, the name didn’t quite fit. So in 2021, they became Wise; clean, global and future-proof.

How they did it: A thoughtful rebrand tied to product evolution, not vanity. They kept their identity and customer trust intact.

Lesson for fintech startups: Rebranding isn’t about new logos. It’s about reflecting who you’ve become.

Going Public the Wise Way

Instead of the typical IPO hassle, Wise went for a direct listing on the London Stock Exchange in 2021. No bankers setting prices, no hype machine, just straight to market. It worked. Wise debuted at a £8.75 billion valuation.

How they did it: Confidence, a loyal customer base, and a brand that sold itself.

Lesson for fintech startups: There’s more than one way to go public. Choose what fits your DNA.

Regulators Come Knocking

Not everything was smooth sailing. Wise got heat from the Belgian central bank in 2022 over anti-money laundering practices. Then in 2025, the U.S. CFPB fined them $2.5 million for remittance rule breaches; including, awkwardly, promoting inaccurate fees.

How they handled it: Wise accepted the findings, updated processes, and doubled down on compliance investment; a humbling reminder that scale invites scrutiny.

Lesson for fintech startups: The bigger you get, the more you need to act like a grown-up. Especially in compliance.

Oof, That Share Price

Wise warned of slower income growth in 2023. Cue investor panic and a £1 billion drop in market cap. Not ideal.

How they responded: By sticking to fundamentals. Despite the drop, Wise stayed profitable and reminded the market it wasn’t built for quarterly stunts.

Lesson for fintech startups: You can’t control markets, but you can control your business. Stay calm. Keep building.

Expanding into Investment Products

In 2024, Wise snagged an Australian Financial Services Licence, allowing it to offer investments to Australian users. It’s a big step toward becoming a global financial utility, not just a transfer tool.

How they did it: Licensing, smart partnerships, and a playbook that’s been working since day one: build, test, then scale.

Lesson for fintech startups: New geographies and products are great, but only if you’ve earned the right to expand.

Where Wise Is Heading Now

As of 2025, Wise is still pushing the boundaries of transparent, efficient global finance. They’re investing in infrastructure, growing Wise Platform (their B2B API offering), and slowly, steadily changing how money moves around the world.

They’re not the flashiest fintech. But in a sector that loves drama, maybe being quietly excellent is the most disruptive thing of all.

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