Business
Rival Company Accuses Fintech Company Wise of Harming Competition in the Money Transfer Industry
A rival of Fintech Company Wise has accused the company of stifling competition in the money transfer business.
This claim was made in a letter to the UK by a smaller foreign exchange firm called Atlantic Money. The Competition and Markets Authority is a watchdog for free markets.
At 10:30 a.m., shares of Wise, which made its debut on the London Stock Exchange in 2021, were trading at £5.14 each. 2% after the market close on Thursday, at London time.
The market value of Wise is £5.3 billion ($6.6 billion).
In the letter that Atlantic Money provided to CNBC, the company claims that Wise unjustly withdrew it off the website’s pricing comparison section and declined to include it on Exiap, a website that also belongs to Wise and compares foreign exchange fees.
Geldtransfer and Currencyshop are two other currency transfer comparison websites owned by Wise.
According to the letter from Atlantic Money, Wise first listed the company on its website on October 14, 2022. On January 20, 2023, it was purportedly delisted after Wise apparently informed Atlantic Money that it was “no longer deemed a legitimate competitor.”
In the letter, Atlantic Money believed Wise’s action was “harmful to competition across the UK and EU and, we would submit, ultimately results in higher fees for end consumers.”
For all currency conversions up to £1 million, Atlantic Money charges a fixed cost of £3. For transfers of £1000 or more, its fees are less than Wise’s.
Wise, formerly known as TransferWise, has long portrayed itself as a champion of consumer rights by promoting transparency concerning the fees that banks charge to transfer money internationally.
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