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 Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term 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. Additionally, Wise runs similar sites, Geldtransfer and Currencyshop.

Written 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.

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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 spokesperson said.

Atlantic Money’s website says it charges a flat fee of £3 for a money transfer. According to reports, this fee can be cheaper for customers when they want to transfer specific 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 was launched 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. On top of that, the regulator is investigating the firms to determine if they have violated the country’s Competition Acts of 1998.