Start-up Atlantic Money launches with a flat fee of just £3 on transfers up to £1m as it battles the likes of Wise
- Atlantic Money charges a £3 fixed fee on transfers up to £1m
- It is pitting itself directly against incumbent Wise
- It claims it can save users up to 99% on their cross-border payment costs
A new money transfer app going up against the likes of Wise has today launched in the UK claiming to save customers up to 99 per cent on cross-border payments.
Atlantic Money, which announced its launch back in March, promises to remove ‘unjustifiable’ transfer costs with a £3 fixed fee.
Founders Neeraj Baid and Patrick Kavanagh moved to London in October 2020 after long stints at Robinhood, one of the first DIY trading platforms in the US.
They were soon confronted with the issues in the money transfer market.
Founders Neeraj Baid and Patrick Kavanagh moved to the UK two years ago and soon realised the issues with money transfers
‘Despite everything you’ve heard in the last 10/20 years, it’s a service that is still expensive… people are still paying fees they don’t really understand.
‘They don’t understand why they’re paying those fees and they’re using products that are pretty complicated,’ the pair previously told This Is Money.
As the money transfer market hots up, Atlantic Money’s £3 fixed fee aims to undercut the incumbents.
Wise fees start from 0.41 per cent, dependent on currency, while Sokin, backed by Rio Ferdinand, has dubbed itself the ‘Spotify of payments’.
Sokin’s global currency account charges £9.99 a month for unlimited overseas transfers in 38 currencies to over 200 countries as well as a debit card.
By contrast, Atlantic Money has secured investment from across Europe, Asia and the US and are confident their fixed fee model will be more profitable.
Baij said: ‘Large financial institutions move unlimited money around the world at effectively zero cost and secure the live exchange rate by working directly with one another.
‘Meanwhile, retail customers are charged progressive fees and unjustifiable exchange rates. We are democratizing pricing previously reserved for the banks and drastically cutting the cost of larger transfers by up to 99 per cent lower than all other money transfer companies.’
Atlantic Money claims to be up to 99 per cent lower than other money transfer companies
Baid and Kavanagh have built a technology platform that offers the live mid-market currency rate and a flat fixed-fee of £3 of transfers up to £1million.
Users simply download the iOS app, go through a one-minute verification process and immediately start transferring money.
Customers will now be able to send money from the UK in GBP into nine currencies including USD, EUR, AUD, CAD, SEK, NOK, DKK, PLN and CZK.
Atlantic Money claims customers can save up to 75 per cent compared to Wise and up to 99 per cent when compared to other competitor.
‘We are already seeing some fascinating use cases and delivering substantial cost savings for our customers. For example, a customer recently purchased a property in mainland Europe and sent the equivalent of €200,000 from the UK – they saved 98 per cent compared to Wise.’
Alongside its launch, the company has announced a further $3million in seed funding, led by Amplo, on top of the $4.5million initial funding. The cash will be used to expand internationally having recently received its EU licence.