Client Call European Payments Initiation # WISE (N, TP: 600p)

As part of the expansion of New Street Research's European Payments coverage this week SOOMIT DATTA will provide an overview on WISE, briefly running through the business model and giving thoughts on the equity prospects from here.

Wise is becoming the go-to digital provider for cross border transfers and broader international account services. Whilst we are more cautious on the stock at these levels, and given some near-term risks, this is a stock we think investors should be watching closely for any further pull back.

DISCUSSION POINTS:

• Infrastructure - overview of Wise's competitive advantage versus banks
• Revenue outlook with "Zero fees"
• Competition in cross-border
• SVB - deposit response to fall out. Some early wins, mid-term concerns over safeguarding?
• TPV pull forward in 2022, back to historic trends for calendar 2023?
• Net interest income - reinvestment in the business
• SMB deeper dive
• Platforms business