$6.6 billion-worth fintech Wise accused by rival of harming competition

$6.6 billion-worth fintech Wise accused by rival of harming competition

Wise has been accused by a rival fintech firm of undermining competition within the cash switch market.

Atlantic Cash, a smaller international alternate service, made this allegation in a letter to the U.Okay. competition watchdog, the Competition and Markets Authority.

Shares of Wise, which debuted on the London Inventory Alternate in 2021, had been value £5.14 apiece at 10:30 a.m. London time, 2% beneath the Thursday market shut.

Wise has a market capitalization of £5.3 billion ($6.6 billion).

Within the letter Atlantic Cash shared with CNBC, the corporate says Wise unfairly eliminated it from the value comparability part of its web site and refused to incorporate it on Exiap — a international alternate charge comparability website that additionally belongs to Wise.

Wise owns two different foreign money switch comparability websites, Geldtransfer and Currencyshop.

Atlantic Cash mentioned within the letter that it was initially listed by Wise on its web site on Oct. 14, 2022. It was later delisted on Jan. 20, 2023, with Wise allegedly telling Atlantic Cash it was “no longer deemed a legitimate competitor.”

Within the letter, Atlantic Cash mentioned it believed Wise’s conduct was “harmful to competition across the UK and EU and, we would submit, ultimately results in higher fees for end consumers.”

Atlantic Cash gives a flat £3 charge on all foreign money conversions as much as £1 million. Its charges are decrease than Wise for transfers of £1,000 or extra.

Previously often known as TransferWise, Wise has lengthy touted itself as a champion of shopper rights, pushing for transparency across the charges charged by banks to maneuver cash throughout borders.

“We decided to remove Atlantic Money for the time being for a number of operational reasons, including queries received from customers about their business. We take any complaints very seriously,” a Wise spokesperson advised CNBC through electronic mail, in response to a request for touch upon the Atlantic Cash letter.

“We’re really proud to have the comparison tool as part of our website, and we’re not afraid to list cheaper competitors. We’ve done that for years and still do.”

The letter might be a precursor to a probe investigating whether or not Wise’s conduct breaches competition legislation.

A CMA spokesperson mentioned that the regulator was unable to touch upon particular circumstances outdoors of a proper investigation.

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