Wise, a money transfer service based in the UK, may be investigated by regulators after a competing startup accused it of anticompetitive behavior.
Dismayed that Wise had barred it from access to a significant portion of its own price comparison sites, The Guardian reported that the London-based Atlantic Money wrote to the Competition and Markets Authority (CMA) to express its concerns.
Wise, previously known as TransferWise, was the most significant tech initial public offering (IPO) in the UK, with a valuation of about £9 billion ($11 billion) following its 2021 stock market debut. Thus, this inquiry might damage the company's reputation and valuation.
The Pricing Comparison Chart
In its own right, Atlantic has a gripe with Wise's purportedly impartial price comparison webpage.
Wise's website provides a pricing comparison feature that displays the transfer costs and currency rates of competitors such as Western Union, Starling Bank, and MoneyGram, in addition to the big high street banks. Exiap, Geldtransfer, and Currencyshop are the six external currency conversion and money transfer comparison sites that it owns.
Launched in the UK and EU last year, Atlantic Money was created by two former Robinhood workers. The London-based company charges a fixed price of £3/€3 (about $3) for money transfers, and MoneySavingExpert reported that for specific clients transferring more than £650 ($805), the site might be cheaper.
Is Wise Rejecting Atlantic Money?
Wise included Atlantic Money in a pricing comparison on Wise.com in October 2022. However, the company's name was taken from the site only last week after receiving questions from clients about its business.
Atlantic was also rejected entrance onto the Exiap and Geldtransfers comparison sites, which Wise controls. The representative said in November 2022 that Atlantic Money is yet in the early phases of building its brand and growing a public footprint.
Concerns have been dismissed by Atlantic, though. The company did not disclose its earnings, although it did report handling £8.8 million ($10 million) in transactions between late July and October of last year.
Wise is basically acting as the gatekeeper to the market and establishing a major barrier to entry, Atlantic said to the CMA. The firm argues that this practice increases consumer costs in the UK and the EU.
If the CMA has reason to be concerned by the complaint, it may open an inquiry into the matter. If the Wise is found responsible, it may be fined or required to take corrective measures.
As part of routine maintenance to keep the list helpful for the consumers, Wise said that Atlantic was not the first supplier to be removed from the company's pricing comparison listings.
According to Wise, the CMA has not been in touch with them. The CMA told The Guardian that it could not provide details about individual instances without first conducting an official inquiry.
