Digital payroll vendor Deel has acquired Atlantic Money, a UK fintech startup set up to compete against money transfer giant Wise.
Founded by two early employees of Robinhood, Atlantic Money moved out of stealth in March 2022 following a £7.5 million Seed roundwith a promise to take on the likes of Wise with a cheaper offering for larger value transactions.
Atlantic Money's pitch is that the fixed percentage rates charged by Wise penalise customers with progressive fees for costs that do not exist. The company corrects the imbalance by offering the live mid-market currency rate and a flat fixed-fee of £3 for transfers up to £1 million.
The firm earlier this year outlined plans to expand its offering bbbeyond the EU, to cover the US, Canada and Australia.
Deel, which has been using Wise platform for cross currency transfers over the past five years, says the acquisition will stregthen its payments infrastructure in Europe and integrate Atlantic Money's fintech expertise into the company.
Explaining he rationale behind the sale, Neeraj Baid, co-founder and CEO of Atlantic Money, says: "When we launched Atlantic Money two years ago, our goal was to create the world's best and most affordable money transfer solution for individuals and companies. We've made incredible progress - moving over half a billion pounds for more than 10,000 global customers while saving people millions in fees compared to former disruptors.
"Joining Deel allows us to combine our innovative and efficient approach to offering financial services with Deel's comprehensive platform, ultimately enhancing the financial ecosystem for businesses operating globally.
"Our team looks forward to working alongside Deel's experts to share insights and develop technologies that will benefit companies managing international workforces. For our customers, your account, transfers and security remain intact."
Baid does not explains how the sale will impact its independent customer base.
Terms of the deal were not disclosed.