The provider of “fixed fee” international transfers, Atlantic Money, is now offering its service to businesses for the first time – shortly after its inaugural year of operation.
Starting today, companies in 29 countries can “send up to one million pounds abroad at the current exchange rate for a flat fee of £3.”
With this launch, Atlantic Money provides businesses “with a new opportunity to save on their global payments during times of rising inflation and logistical post-corona issues, while formerly cheap providers have sharply increased their transaction costs.”
The price increase was driven by two of “the largest fintechs in this market: Revolut raised its fee for international business payments by 50% on July 23, Wise by up to 20% on April 23.”
The two UK fintechs serve “over 45 million users in total.”
Businesses account for 97% of global international transfers
Atlantic Money expects that entering “the business-to-business (B2B) and business-to-consumer (B2C) sector will significantly increase the impact of flat-rate international transfers.”
In its first year, Atlantic Money reportedly “transferred £160m for its users abroad, surpassing Wise’s debut volume by 16 times.”
At that time, Atlantic Money did “not offer payments for businesses or the largest target currency for international transfers, the Indian Rupee.”
As the company now introduces transfers for businesses, it’s expecting “an even more robust growth in the upcoming year of operations.”
A study by consulting firm Ernst & Young (EY) helps to understand the potential impact of the launch of “Atlantic Money for Business”: According to the analysis, businesses account “for 97% of the global money transfer market, with a total value of £120 trillion (US$151.6t).”
Additionally, Atlantic Money’s flat-rate pricing structure is “particularly beneficial for larger transaction amounts, which businesses naturally carry out more frequently.”
For transactions up to one million pounds, the differences amount to several thousand pounds.
As noted in the update:
“Many fintech companies aim to replace traditional bank accounts. Atlantic Money’s vision is different. We do not want to be yet another bank account for businesses. Instead, we focus on enhancing what’s already there, making it easier to blend our service into current business setups. Our aim is to make the use of Atlantic Money smooth and hassle-free, while keeping the comfort of existing accounts intact. This highlights Atlantic Money’s dedication to creating a user-friendly experience, taking full advantage of the compatibility between our services and business’s current financial setup.”
Neeraj Baid, Co-Founder and CEO of Atlantic Money, added:
“For the first time, businesses can transfer up to one million pounds abroad and always pay just £3. This way they can save our users thousands of pounds per transfer, even compared to the providers that used to be recognised as cheap. It fills us with pride that we can improve the payments market in such an innovative way. We can’t wait to help all the international businesses and get closer to bringing variable fees to an end.”
As covered, Atlantic Money claims it is “the only international money transfer provider that offers international transfers at a flat fixed fee and the current exchange rate – for transactions up to millions.”
Even compared to the formerly cheapest providers such as Wise or Revolut, users can “thus save up to 99 per cent on each transfer, as Atlantic demonstrates in its price comparison calculator.”
Founded in 2020 by Robinhood alumni, Neeraj Baid and Patrick Kavanagh, Atlantic Money is “available in 29 countries following its official launch in July 2022.”
The fintech challenger has “received $7.5 million in seed funding from investors, including Amplo, Ribbit Capital, Index Ventures, Kleiner Perkins, 20VC, Day One Ventures, Nordstar and Elefund, and is based in London.”