Money transfer fintech launches in London to take on Wise and PayPal
A new money transfer fintech firm is looking to snap up market share from Wise and PayPal as it launches in London today with a fresh $4.5m round of funding.
Atlantic Money, which offers a fixed fee of £3 for money transfers as opposed to the sliding scale of its competitors, said the big players in money transfers were hitting customers with “unjustifiable” fees and it was looking to provide a remedy.
Atlantic’s founders have got $4.5m backing from some of the capital’s leading early-stage venture capital firms including Amplo, Index Ventures and 20VC, to go after the top end of the market who move large sums of money across borders on a regular basis.
Atlantic bosses said the firm’s fee structure would bring “equality” to money transfer.
“Sending money abroad should be simple, fast and low-cost,” said Patrick Kavanagh, Co-Founder of Atlantic Money.
“We’ve built Atlantic Money from the ground up to deliver on these objectives and aim to be the logical default option for customers who send larger amounts of money overseas regularly.”
The market had evolved in the last decade, Kavanagh said, but still had a long way to go when customer of Wise and PayPal were paying “significant and unjustifiable fees”.
Kavanagh and co-founder Neeraj Baid said they had stripped out cost from the service by focusing on the core transfer proposition for customers rather than delivering a “super app”.
“If you look at a lot of fintechs, they try and be all things to all people which increases the cost,” said Baid.
“But most people don’t want that – we’re focusing on our money transfer services and cutting out the cost.”