- The move will give Modulr total independence of its banking infrastructure
- This will lead to greater reliability for Modulr’s customers, removing friction presented by using third parties, leading to cost savings passed directly to customers
London & Edinburgh, UK, 19th December 2019
Modulr, the Payments as a Service API platform for digital businesses, has today announced it has become one of a few non-bank Payment Service Provider (PSP) participants of Bacs, the Pay.UK-operated payment system. The move sees Modulr take full control of its Bacs payment flows and removes any reliance on third-party banking partners.
The move will provide its clients with a direct solution and deliver an easier, simpler and more reliable service. It will also lead to reduced operational costs, allowing Modulr to pass on cost savings directly to customers.
Bacs is one of the most important and popular payment methods in the UK. In 2018, combined direct Bacs transactions - credit and debit - totalled a volume of 6.4bn, worth nearly £5trn across the year.
Modulr, the four-year-old FinTech, achieved this latest direct participation of Bacs under a new settlement account policy directive initiated by the Bank of England. This new directive is a key part of the broader policy objectives for organisations such as the BoE, FCA, Payment systems regulator (PSR) and HM Treasury, to drive greater competition and innovation in UK payments.
Modulr believes that its direct participation to Bacs sparks the third evolution of fintech, where a FinTech is fully embedded in the UK’s payments infrastructure.
Myles Stephenson, Modulr CEO, comments: “We see this as the furthest step yet taken in the history of fintech. We’ve moved from licenses, to third-party systems and card rails, to the third stage of fintech evolution; direct access to payments systems and infrastructure.
“This means we’re further embedded in the payments landscape. This sets the bar for the competition, offering the most reliable way to ensure a friction free customer experience.
“By removing our reliance on third-party systems, and tapping directly into the source, we can build for scale and have total control over our access to the wider infrastructure. This move, along with direct access to Faster Payments, reflects our determination to build a digital payments infrastructure fit for future-facing businesses.”
Matthew Hunt, COO of Pay.UK, the home of Bacs, Faster Payments, and Cheques, says: “Our core purpose at Pay.UK is to enable a vibrant UK economy and, as driving more participation and involvement in payments is a vital part of this, we are pleased to welcome Modulr as a new non-bank participant to Bacs.”
The news follows the recent announcement that Modulr became a direct participant in the Faster Payment Service (FPS) on Friday 7th June 2019. Modulr is one of a small number of non-bank payment service providers (PSP) to hold an account in the Bank of England’s (BoE) Real-Time Gross Settlement (RTGS) system, allowing the FinTech to settle payment obligations in central bank money under its Modulr FS Limited entity (FRN 900573).
Modulr is the Payments as a Service API platform for digital businesses. It integrates into any product or system. Modulr’s new type of payment accounts are built for businesses that need a faster, easier and more reliable way to move money. Once integrated, businesses can instantly set up as many accounts as they need. Getting paid, reconciling and making payments is fully automated and can be managed in real-time, 24/7 through their existing software applications.
Modulr’s API makes it easy for businesses to streamline existing services, launch new products and scale more efficiently. Modulr Finance Limited (FRN: 900699) is registered with the Financial Conduct Authority as an EMD Agent of Modulr FS Limited (FRN 900573). Modulr FS Limited is an Authorised Electronic Money Institution, regulated by the Financial Conduct Authority.
For further information – please go to www.modulrfinance.com
Pay.UK maintains and develops the UK retail payment systems and standards that are core to the economy being able to function on a day-to-day basis. From Bacs to Faster Payments and cheques – we act as the single operator for all UK retail payments. We put the needs of consumers and businesses at the heart of everything we do, working in the public interest to ensure that the systems the country relies on for its banking transactions are safe, open, innovative and resilient.
Our payment systems underpin the services that enable funds to be transferred between people and institutions. In 2018, the UK’s retail payment systems processed 8.8 billion transactions worth £7 trillion through Bacs Direct Credit, Direct Debit, Faster Payments, and cheques. Every day, individuals and businesses use the services we provide to get their salaries, pay their bills and make online and mobile banking payments. Our vision for the future is to enable a vibrant economy, with Pay.UK delivering the best-in-class payment infrastructure and standards for the benefit of consumers and businesses nationwide.
Find out more on our website: wearepay.uk or get more detail on the systems we manage: Bacs.co.uk, chequeandcredit.co.uk, fasterpayments.org.uk, paym.co.uk.
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