Atlantic Money, a UK money transfer service startup, has accused fintech
company Wise (formerly TransferWise) of stifling fair competition by yanking it off its price comparison sites. The startup in a letter written to the UK Competition and Markets
Authority (CMA) accused Wise of “creating a substantial barrier to entry for
cheaper and more innovative providers to establish themselves.”
Atlantic Money, which was founded in 2021 and listed on Wise in October 2022, alleged that Wise stopped quoting its transfer fees last week on the section on its [Wise’s] website that lists the fees and foreign exchange
rates charged by alternative currency transfer providers. The startup further alleged that the more established fintech company has refused its entry into Exiap, a Wise-operated currency transfer rates comparison website. Wise
also runs similar sites, Geldtransfer and Currencyshop.
Writing further in the letter, Atlantic Money, which launched in the UK and European
Union in 2022, noted that Wise’s action “is harmful to competition across the
UK and EU,” adding that the development could shoot up transfer fees charged by
money transfer providers.
Watch the recent FMLS22 session on innovating in fintech.
Wise Says It Is Not Afraid of Listing Cheaper Competitors
However, a Wise spokesperson told Guardian UK that the company delisted Atlantic Money temporarily “for a number of operational reasons” including
queries it received from the startup’s customers. “We take compliance with all
applicable laws very seriously,” the spokeperson said.
Atlantic Money’s website says it charges a flat fee of £3 for money
transfer. According to reports, this fee can be cheaper for customers when they
want to transfer certain amounts of money. However, Wise in a statement said it
is not afraid of listing cheaper alternatives.
Wise was established in January 2011 and is one of the UK’s top fintech firms. The company hit a value of almost £9 billion after
it debuted on the London Stock Exchange in 2021. The London-headquartered company continues to guard its growth, posting an 80% year-over-year jump in its total income
for the third quarter (October-December 2022) of its fiscal year 2023.
Meanwhile, the UK Financial Conduct Authority on Wednesday issued a statement of objections against three money
transfer firms for their possible unfair competition practices in 2017. The
regulator is also investigating the firms to determine if they have violated the country’s Competition
Acts of 1998.
Atlantic Money, a UK money transfer service startup, has accused fintech
company Wise (formerly TransferWise) of stifling fair competition by yanking it off its price comparison sites. The startup in a letter written to the UK Competition and Markets
Authority (CMA) accused Wise of “creating a substantial barrier to entry for
cheaper and more innovative providers to establish themselves.”
Atlantic Money, which was founded in 2021 and listed on Wise in October 2022, alleged that Wise stopped quoting its transfer fees last week on the section on its [Wise’s] website that lists the fees and foreign exchange
rates charged by alternative currency transfer providers. The startup further alleged that the more established fintech company has refused its entry into Exiap, a Wise-operated currency transfer rates comparison website. Wise
also runs similar sites, Geldtransfer and Currencyshop.
Writing further in the letter, Atlantic Money, which launched in the UK and European
Union in 2022, noted that Wise’s action “is harmful to competition across the
UK and EU,” adding that the development could shoot up transfer fees charged by
money transfer providers.
Watch the recent FMLS22 session on innovating in fintech.
Wise Says It Is Not Afraid of Listing Cheaper Competitors
However, a Wise spokesperson told Guardian UK that the company delisted Atlantic Money temporarily “for a number of operational reasons” including
queries it received from the startup’s customers. “We take compliance with all
applicable laws very seriously,” the spokeperson said.
Atlantic Money’s website says it charges a flat fee of £3 for money
transfer. According to reports, this fee can be cheaper for customers when they
want to transfer certain amounts of money. However, Wise in a statement said it
is not afraid of listing cheaper alternatives.
Wise was established in January 2011 and is one of the UK’s top fintech firms. The company hit a value of almost £9 billion after
it debuted on the London Stock Exchange in 2021. The London-headquartered company continues to guard its growth, posting an 80% year-over-year jump in its total income
for the third quarter (October-December 2022) of its fiscal year 2023.
Meanwhile, the UK Financial Conduct Authority on Wednesday issued a statement of objections against three money
transfer firms for their possible unfair competition practices in 2017. The
regulator is also investigating the firms to determine if they have violated the country’s Competition
Acts of 1998.
Read More
Solomon Oladipupo