Wise reported revenue of £498.2 million, up 25% year-on-year as active customers increased by over 30%.

The company is benefiting from rising interest rates as it onboards more customers to its accounts. Income increased 58% to £656 million driven by revenues, and the interest income on customers’ balances.

The company expects income growth for FY24 to be between 33-38% given the strong start to the year and higher interest income expectations.

The firm says its adjusted Ebitda margin for FY24 is likely to be much higher than its 20% medium term target “given the higher interest rates and the reality that we are unable to return interest to customers at the level we would like.”

Although the firm can offer its continental European customers cashback on money in their accounts, current UK rules forbid it from doing so because it holds an e-money licence rather than a full banking licence.

The latter technical issue is currently a subject of discussions with UK regulators, who have been leaning on financial services firms to pass on interest rate rises to customers.

Shares in the company have grown by 25% since the start of the year, defying a widespread downturn in payment stocks.