Meet Atlantic Money, a foreign exchange business that aims to be less expensive than the competition. If that pitch seems familiar, it’s because Wise, formerly known as TransferWise, first arrived on the startup scene with a similar promise.
Nonetheless, Atlantic Money believes that even Wise and Revolut are overpriced. They try to accomplish too many things at once, according to the corporation and wind up charging clients for stuff they don’t need.
On Atlantic Money, how much will you spend on international money transfers? The company will charge a fixed price of £3 and that will be the end of it. They will not be able to acquire a markup on the exchange rate.
£3 is a lot of money for little payments. However, Atlantic Money gets more competitive after you transfer more than £1,000.
And this is critical to Atlantic Money’s success. The firm wants to switch to a set, per transaction price instead of imposing increasing fees.
Neeraj Baid and Patrick Kavanagh founded the company after meeting at their prior work at Robinhood. Amplo and Ribbit Capital led a $4.5 million seed round for the firm. Vlad Tenev and Baiju Bhatt, the creators of Robinhood, also invested in the startup. Anquan Wang of Webull is also a shareholder.
At first, the startup will just offer a few corridors. Users who join up today can send money from the United Kingdom in GBP to nine different currencies: USD, EUR, AUD, CAD, SEK, NOK, DKK, PLN, and CZK. Atlantic Money is currently focusing on local bank transfers as a payment mechanism. Standard transfers take two to three business days to arrive, whereas express transfers are expected to arrive the same day.
Behind the scenes, the firm collaborates with a number of significant financial institutions to secure a favorable foreign exchange rate. Atlantic Money selects the most competitive rate and does not charge a markup fee. It will be fascinating to see if Atlantic Money can outperform its competitors in terms of rates.
At the time of writing, transferring £5,000 to the United States on Wise costs £17.79 in fees – you receive $6,648.51. In addition to the £5,000 you intend to convert, you’ll spend £20.96 in fees if you use a free Revolut account. The exchange rate is slightly better, with roughly $6,700 being received in exchange for £5,020.96.
Revolut, of course, offers a variety of other services, including bank accounts, cards, and the ability to trade stocks and cryptocurrencies. You can upgrade to a premium account for £6.99 per month and avoid currency exchange fees. However, because it’s a 12-month plan, depending on your Revolut usage, you may wind up spending more in subscription costs than in FX fees.
Wise, however, allows you to generate local account details in a dozen countries, which could come in handy if you need to get paid in a place where you don’t live. Wise also makes every effort to make transfers as rapid as possible; 45 percent of Wise transfers take less than 20 seconds.
To put it another way, there’s enough room for more than one foreign exchange product. It isn’t a one-size-fits-all business. Customers will choose a service based on the corridor they use the most, the average size of their transfers, and any other features they require. However, if you simply want to send huge amounts of money from the United Kingdom to Europe or Northern America, you might consider using Atlantic Money.
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