UK FinTech Wise has launched a coalition to fight IBAN discrimination in partnership with other European FinTechs, including Starling Bank, N26, Revolut, Raisin, Klarna, SumUp and Fire.

IBAN discrimination is when an employer, merchant, or any other company in the single euro payments area (SEPA) refuses to accept a SEPA-enabled IBAN for payments or direct debits.

This practice has been illegal in the EU since 2014, however instances are still commonly reported.

Though the UK is no longer part of the European Union (EU), it is still part of the SEPA alongside other non-EU nations like Iceland, Liechtenstein, Norway, Switzerland and rules still apply.

Consumers will be able to file a complaint to the European Commission or other relevant authorities via the “Accept my IBAN” website, using a draft complaint intended to limit admin time for affected consumers.

Wise offer digital banking services for businesses and raised a $12 million Series A round in October 2020.

“Our coalition serves millions of people across Europe, and we believe it is crucial to put an end to discrimination against non-local IBANS,” said Arunan Tharmarajah, head of European banking at Wise. “Our customers - and the customers of our coalition partners - still fall victim to this on a daily basis.”

He added: "We’re calling on all European consumers to stop taking no for an answer. Iban not accepted? Tell us and we promise your case will be heard by the relevant authorities.”

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