Co-founders Kavanagh and Baid are former early employees at Robinhood where they noted an institutional advantage when it came to money transfers. Now they want to be the cheapest way to send larger amounts of cash abroad.
Atlantic Money, a new money transfer service has launched in the UK following a $3m seed funding round.
While this makes it slightly more expensive for Wise and Monese at c.£1000 level, the company says, after this, the cost is extremely competitive when it comes to the tens of thousands of pounds and above.
“Large financial institutions move unlimited money around the world at effectively zero cost and secure the live exchange rate by working directly with one another. Meanwhile, retail customers are charged progressive fees and unjustifiable exchange rates, said Neeraj Baid.
For example, the company found Wise charged c.£260 for a transfer of £50,000 while Monese charged c.£300 including FX charges. Customers can send money from the UK in GBP into 9 currencies including USD, EUR, AUD, CAD, SEK, NOK, DKK, PLN and CZK, although it is adding new currencies in the near future.
Kavanagh and Baid are former early employees at Robinhood where they noted the institutional advantage when it came to money transfers.
The new round of seed capital was led by Amplo and included Nordstar and former Lazada executive, Martell Hardenberg. The company also raised $4.5m in an initial seed round from investors including Index Ventures, Ribbit & Kleiner Perkins.
“The previous generation of challengers like Revolut and Wise disrupted the banks, bringing better technology and lower fees. But they have since lost focus and abandoned the very product that made them great in a quest to build the next ‘super app’. We are disassembling this approach by being laser-focused on doing one thing better than anyone else – getting people’s money from one currency and country to another, as efficiently as possible“ said Patrick Kavanagh, Co-Founder of Atlantic Money, said:
Atlantic Money will be available for EU residents in the coming months.