Skip to content
Modulr glossary

Straight-Through Processing (STP)

STP refers to the automated, end-to-end processing of transactions without manual intervention. In payments, STP ensures that funds move through each processing stage – from initiation to settlement – seamlessly.

Applications

E-commerce:

Reduces fraud in online card payments by verifying the cardholder's identity

Banking and fintech:

Helps issuers and payment providers comply with Strong Customer Authentication (SCA) requirements.

Advantages

  • Enhanced security: Reduces unauthorised transactions by verifying that the genuine account holder is authorising the payment
  • Fraud prevention: Helps reduce chargebacks related to fraud.

Challenges

  • User Experience: Additional authentication steps can cause friction and increase checkout abandonment
  • Implementation complexity: Requires integration with card schemes and issuer systems.

Sign up to our newsletter for our latest news and insights