Frequently Asked Questions
Frequently Asked Questions
Frequently Asked Questions
Modulr is the Payments as a Service API platform for digital 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.
In the Old World, business payment services are slow, unreliable, and dependent on manual intervention.
It means that the state of business payments is unacceptable for modern businesses and stifles innovation, cross board efficiency and market growth.
In the new world, modern businesses expect convenience, scalability and reliability when managing their payments. They expect their infrastructure to scale as they do rather than hold them back.
That’s because they now live in the Instant Economy.
The Instant Economy describes a collection of forward-thinking businesses that can instantly access and consume services in real time, taking advantage of scalable infrastructure to deliver new services to end consumers.
The Instant Economy is the digital evolution of commerce, and it’s fundamentally changed the way we interact with money.
It’s changed because consumers have premium expectations, meaning businesses must turn to technology to save operational costs and give them a competitive advantage.
Modulr integrates into any product or system via its API, enabling digital businesses to instantly set up as many payment accounts as they need to begin getting paid, reconciling and making payments.
Modulr’s Payment as a Service model is built to equip its partners and clients for the Instant Economy, where businesses and their clients demand total control and visibility over their payments in real-time, at all times.
An API platform is a software service that is consumable via an application programming interface (API). APIs allow different software and IT systems to communicate between each other, allowing businesses to use our services through their technology. We built our API platform in-house to maximise productivity and provide our customers with greater security and ease when launching new products.
Digital-first payment solutions are built to operate seamlessly with other technology and software. Modulr’s API enables businesses to take advantage of convenient, scalable and reliable payments that are the hallmark of the Instant Economy.
Modulr accounts replace bank accounts for payments. Modulr provides a new type of payment account that comes with sort codes or IBAN, access to payment schemes and everything you’d expect, but they’re faster, easier and more reliable.
Modulr FS Limited (FRN 900573) is an Authorised Electronic Money Institution (AEMI), regulated by the Financial Conduct Authority. This allows Modulr FS Limited to issue electronic money (e-money) to clients, holding client funds in safeguarded accounts, and provide related payment services to customers. Modulr Finance Limited (FRN: 900699) is registered with the Financial Conduct Authority as an EMD Agent of Modulr FS Limited.
Payment services within the UK are subject to the Payment Services Regulations (PSR). This is the common regulation which applies to all payment services, meaning there is no difference between how a payment service at Modulr or a bank is regulated.
Modulr clients are issued with e-money accounts on the Modulr platform. These accounts have an account number under one of Modulr’s Sort Codes, or an IBAN associated with Modulr’s bank identifier code (BIC). These e-money accounts are provided under Modulr FS Ltd’s license as an AEMI (FRN: 900573).
In line with our regulatory requirements, 100% of client funds related to the e-money that Modulr FS Ltd has issued are segregated from Modulr’s own funds and are held within designated Client Money Accounts with our clearing bank.
This means 100% of client funds are protected from any risk associated with Modulr’s solvency. Modulr uses a range of clearing banks for different services, but with Direct Access to Faster Payments and Bacs, Modulr holds funds associated with UK domestic flows at the Bank of England.
In line with the Electronic Money Regulations, Modulr FS Ltd holds an additional ‘own funds’ to the value of 2% of the safeguarded balance. AEMIs like Modulr FS Ltd have a responsibility to notify their regulator should their ‘own funds’ fall below this 2% mark. The purpose of the funds is to ensure that, in the case of any business issues, there are enough funds to support an orderly business winddown and the process of returning of client funds held back to clients.
Combining this ‘own funds’ requirement with the safeguarding means that customer funds are 100% available to a customer, and there is a protection mechanism to help ensure an orderly wind down of an AEMI if required. As such, while the Financial Services Compensation Scheme (FSCS) is not applicable as a protection for e-money products, the regulatory regime outlined above can be relied upon instead and protects the full balance of customer funds as opposed to only protecting up to a cap.
In addition to the safeguarding and further ‘own fund’ requirements we’re also required to prepare orderly wind down planning. These plans include the early identification of a potential insolvency event and the return of your funds before an insolvency process. We have to provide these plans to the FCA and they are subject to external audit review. This further reduces the unlikely event of your funds having to be returned during our insolvency. In the unlikely event that Modulr becomes insolvent, your funds are separate from the funds of Modulr and therefore the creditors of Modulr (other third parties that are owed money from Modulr) are not able to make a claim or have any effect on your funds.
An independent insolvency professional (referred to as an ‘insolvency practitioner’) will be appointed to return your funds to you. However, where an insolvency practitioner is unable to take their costs of sending the funds to you from elsewhere (for example, the general pot of Modulr funds remaining or from the additional 2% own funds described above) they are entitled to take their costs from your funds. In this circumstance, while you’ll likely receive most of your funds you may not receive the total value if costs are deducted.
The process of returning your funds by an insolvency practitioner is likely to take longer than if you were making a claim in the FSCS.
To start using Modulr, fill out this enquiry page and one of our specialists will be in touch to discuss your specific needs.
You can create bespoke triggers and notifications on accounts, so funds flow how you need them to. This will make payment processing and reconciliation easier and eliminate manual effort and errors.
Modulr was incorporated in December 2015. Modulr FS Ltd was authorised as an Electronic Money Institution (FRN: 900573) by the FCA in September 2016.
Modulr is a fully cloud based service, enabling us to deploy our solutions rapidly.
Modulr is built on a secure platform with multi-factor authentication, activity observation and regular penetration testing.
Yes, 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.
Yes, Modulr is a legitimate business. The FinTech provides legitimate, secure and regulated payment services and payments infrastructure to a variety of businesses who may, in some cases, use Modulr's sort code.
Modulr FS Limited, a company registered in England with company number 09891919 and ICO registration: ZA183098 is authorised and regulated by the Financial Conduct Authority as an Electronic Money Institution (Firm Reference Number: 900573).
The Modulr API integrates with any platform or system, making it easy to build payment efficiency into the heart of any business or product. Our partners include Sage, Paxport and Accentra to name a few.
Modulr services are currently benefiting clients in the umbrella, recruitment, payroll, travel, agency banking, proptech and lending industries. They are able to open unlimited accounts, automate pay out, simplify pay in and deliver their end customers new services.
You can view some of our customer case studies on our blog. Just some of the names you will recognise include Sage, Revolut, Accentra and Paxport.
Modulr provides other businesses with payments technology. We're the payments plumbing behind the scenes, the tech behind the tech. Often customers of our customers don't see Modulr, but occasionally they might, especially when other financial institutions display the sort code provider name. Where relevant we work with our customers to provide education to their own customers.
Modulr accounts provide access to a growing network of existing UK and European payments schemes, including direct access to Bacs and Faster Payments with principal membership of Mastercard and Visa. Modulr also offers access to CHAPS and SEPA.
We have access documentation and Sandbox access, as well as plenty more information, on our developer pages. Built from the ground up, the Modulr API was one of the first REST APIs to launch in banking. It’s powerful, secure and easy to use.
Modulr has offices in London, Edinburgh and Dublin.
Edinburgh - 80 George St, Edinburgh, EH2 3BU, UK