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$6.6 billion fintech Smart accused by rival of harming competitors

The Smart emblem displayed on a smartphone display screen.

Pavlo Gonchar | SOPA Photographs | LightRocket by way of Getty Photographs

Smart has been accused by a rival fintech firm of undermining competitors within the cash switch market.

Atlantic Cash, a smaller international trade service, made this allegation in a letter to the U.Ok. competitors watchdog, the Competitors and Markets Authority.

Shares of Smart, which debuted on the London Inventory Change in 2021, had been price £5.14 apiece at 10:30 a.m. London time, 2% beneath the Thursday market shut.

Smart has a market capitalization of £5.three billion ($6.6 billion).

Within the letter Atlantic Cash shared with CNBC, the corporate says Smart unfairly eliminated it from the worth comparability part of its web site and refused to incorporate it on Exiap — a international trade charge comparability website that additionally belongs to Smart.

Smart owns two different forex switch comparability websites, Geldtransfer and Currencyshop.

Atlantic Cash stated within the letter that it was initially listed by Smart on its web site on Oct. 14, 2022. It was later delisted on Jan. 20, 2023, with Smart allegedly telling Atlantic Cash it was “now not deemed a respectable competitor.”

Within the letter, Atlantic Cash stated it believed Smart’s conduct was “dangerous to competitors throughout the UK and EU and, we might submit, finally ends in greater charges for finish shoppers.”

Atlantic Cash affords a flat £three charge on all forex conversions as much as £1 million. Its charges are decrease than Smart for transfers of £1,000 or extra.

Previously referred to as TransferWise, Smart has lengthy touted itself as a champion of shopper rights, pushing for transparency across the charges charged by banks to maneuver cash throughout borders.

“We determined to take away Atlantic Cash in the meanwhile for numerous operational causes, together with queries acquired from prospects about their enterprise. We take any complaints very significantly,” a Smart spokesperson informed CNBC by way of e mail, in response to a request for touch upon the Atlantic Cash letter.

“We’re actually proud to have the comparability device as a part of our web site, and we’re not afraid to record cheaper opponents. We have performed that for years and nonetheless do.”

The letter might be a precursor to a probe investigating whether or not Smart’s conduct breaches competitors legislation.

A CMA spokesperson stated that the regulator was unable to touch upon particular instances outdoors of a proper investigation.

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