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The $153 billion growth tax on small businesses

The state of small business

As we head into 2025, US-based small-medium sized businesses (SMBs) face strong headwinds. The rising costs of goods and services, uncertainty around tariffs and currency volatility are all inhibiting SMBs’ ability to grow, especially in an international landscape.

Beyond the macro economic environment, there are a number of unnecessary financial pressures being placed on small businesses. Chief among them: hidden fees in financial transactions.

Our new report combines economic research and qualitative data to assess how hidden fees serve as a ‘growth tax’ on small businesses.

Read the report here
calm the chaos of small business

$153 billion

SMBs are losing

annually to hidden fees in financial transactions

Financial services providers are often the first to voice their support for SMBs. Yet they are simultaneously placing further financial pressure on these very same businesses in the form of hidden fees. US-based SMBs are losing a shocking $153 billion a year to hidden fees in financial transactions.

The financial strain of hidden fees is acting as an undue burden on SMB growth. Leaders of these businesses agree, four in five (83%) believe hidden fees amount to an unfair 'growth tax' that limits their ability to expand and invest in their business

The most detrimental costs for SMBs are international transfer fees, which businesses pay for an average of 36 times per month, followed closely by currency exchange fees, which are charged 30 times per month. Together, hidden fees on critical international business operations cost SMBs about $43 billion, making up 28% of their total losses.

83%

Of SMB leaders believe hidden fees amount to an unfair 'growth tax'

30

The number of times SMBs are charged currency exchange fees per month

$43 billion

Lost by SMBs on hidden fees on critical international business operations

Empowering SMBs with the clarity and confidence they need


Commissioned by Wise and conducted in partnership with The Centre for Economics and Business Research (Cebr), this study analyzed responses from over 1,000 financial leaders at small and medium-sized businesses (SMBs) across the US. Our report exposes the need for financial services providers to offer greater transparency on fees. Only then will small businesses have the financial stability they need to thrive.
Download the full report
Understanding the impact of hidden fees

“SMBs deserve more providers that offer transparent fees instead of the predatory financial practices that so commonly inhibit their growth.”

— June Yuan, Wise Business Product Lead for North America