This month at Modulr, we've joined CHAPS, becoming the only non-bank payment service provider in the UK connected directly to all three major UK payment schemes, and settling directly at the Bank of England.
We’re also pleased to announce that our commercial VRP sandbox is now available for testing, so customers exploring the product can simulate example and error scenarios and share early feedback as testing gets underway. Looking ahead, Spend Management is coming to the mobile app so you can view, activate, and freeze cards on the move. Modulr AP is gaining comments on invoices, receipts, and purchase orders, as well as receipt approvals, and
Payroll is gaining multi-client file upload, Approve & Fund, and Multi-client views.
Dive in to explore what's new and what's next.
New Products
Modulr has joined CHAPS
Modulr is now the only non-bank payment service provider in the UK connected directly to all three major UK payment schemes.
We've become a direct participant in CHAPS, settling directly at the Bank of England. CHAPS is a critical part of the UK's payments infrastructure: in 2025 it settled £93.9tn across a record 53.3mn payments, an average of £371.3bn every working day.
Alongside our existing direct access to Faster Payments and Bacs, this gives us greater control over payment flows, more resilient operations, and ultimately allows us to provide a more efficient service for customers.
New features
Commercial VRP
Commercial VRP sandbox is now available!
Alongside our live product, we’ve launched the commercial VRP (cVRP) sandbox. You can simulate successful payment flows and error scenarios, giving your team a working view of the API before moving to your live integration.
Direct Debit collections
Automatically sweep successful Direct Debit collections
Do you regularly move money collected by Direct Debit out of Modulr? Soon you won't have to do it manually.
From September, you can opt in to switch on automatic sweeping. Once your Direct Debit collections clear, Modulr automatically moves the funds straight to your own account at another bank or PSP. no manual transfers needed.
This will run automatically on Day 5 of the collections cycle, once all Direct Debit returns (ARUDD) are complete, so your funds keep moving without manual transfers.
Here’s a short breakdown of how it works:
- You opt in and tell us which account to sweep to (it must be verified as yours)
- Modulr collects your Direct Debits as normal
- On Day 5 of the collection cycle, once all returns and reversals (ARUDD) have completed, we sweep the successful funds to your account automatically
The result: your money keeps moving on schedule, without you having to lift a finger.
Direct Debit collections
Get notified about Direct Debit Indemnity Claims (DDIC)
The Modulr API now provides notifications and the status of Direct Debit Indemnity Claims (DDIC); a claim raised when a payer disputes a collection.
If you take Direct Debit collections, we'd recommend registering for these webhooks. They let you see claims as they come in and act on them quickly, before they cost you.
Most claims can be self-challenged. Here's how:
- Log in to the Bacs Payment Services Website using your organisation's Primary Security Contacts (PSCs), these were set up at onboarding and can add or manage other users
- Pay.UK publishes a helpful DDIC guide covering the challenge process (register at http://Bacs.co.uk with your Service User Number to access)
Read our full guide on setting up your webhooks and improving your claim handling.
Modulr Payouts/Payroll
Enhanced payment file validation
Payment files are now easier to work with. If there's an issue with a payee name, account detail, or transaction amount, the portal points you straight to the exact line number and the value causing it so instead of hunting through the file, you can see what's wrong and fix it in seconds.
This is one of a series of improvements we're making to take the friction out of everyday tasks and make things simpler for everyone using the platform.
Coming soon
Mobile App
Spend Management in the Mobile app
If you are using our Spend Management product, you will soon be able to manage cards directly from a new section in the Modulr mobile app.
From the app you’ll be able to:
- View and activate your cards
- Retrieve card numbers
- Freeze and unfreeze cards on the go
- Add receipts straight from your phone
Support for adding cards to Apple and Google Wallet is coming soon, making it even easier to spend on the move.
Download on:
Direct Debit collections
Pay.UK has updated the Direct Debit scheme rules - effective 1 September
Pay.UK has published updates to the Service User's Guide and Rules to the Direct Debit Scheme (SUGR DD). The changes take effect on 1 September 2026.
If you collect Direct Debits under Modulr's sponsorship, this affects you. Every Service User we sponsor is required to understand these rules and stay within them, so it's worth reviewing what's changed before the update lands.
You can access the full rules any time. Register at http://Bacs.co.uk using your Service User Number (SUN), and you'll be able to view the guide and the summary of latest changes.
Modulr AP
Approve and reject receipts in Modulr AP
To ensure that only complete, accurate submissions make it into your spend management records we’re adding the ability to approve or reject receipts submitted against card transactions.
Here's what it will enable:
- Review and decide. Approve receipts that are good to go, or reject ones that fall short.
- Cardholders fix their own submissions. If something's unclear or missing, cardholders can edit a receipt or add extra detail.
- No receipt? Log it properly. If a receipt has genuinely gone missing, cardholders can flag the transaction and sign an affidavit explaining why, so your records stay complete and audit-ready.
The result: cleaner expense records, less chasing paperwork, and a clear audit trail.
Modulr AP
Comment directly on invoices, receipts, and purchase orders in Modulr AP
We’re introducing the ability to add comments straight onto invoices, receipts, and purchase orders in Modulr AP. Flag an issue or ask a question, all without leaving the platform or switching to email.
Comments stay attached to the document they're about, so nothing gets lost and your team can follow how each decision was made. This gives you a clear, auditable trail of every conversation tied to a transaction, cutting down on back and forth outside the platform.
Payroll
Multi-client file upload in Modulr Payroll Payments
Soon, a single Bacs 18 file will be able to carry payments for several clients at once.
Upload once, then manage everything from a single screen; see all created payments together, approve them, run payee checks, and track exceptions across every client without switching between them one at a time.
Less repetitive uploading, fewer screens to jump between, and a faster path from file to approved payments.
Want a preview? Get in touch with us.
Payroll
Approve and fund in one step in Modulr Payroll Payments
Approving and funding payroll will soon be wrapped up in one simple step.
When a payroll run needs funding, choose Approve & Fund. The portal works out the exact amount needed and lets you transfer it from your business account. Your bank handles authorisation, then drops you back into the portal right where you left off. The portal handles the rest so you don’t lose your place in the flow.
Two things to know: you'll need access to the business bank account you're funding from, and your bank's own transfer limits still apply, so larger runs may need a manual transfer.
Want a preview? Get in touch with us.
Payroll
Practice-wide payment views in Modulr Payroll Payments
If you run payroll for lots of clients, reviewing a pay cycle today means opening each client one at a time, doing what you need, then backing out to the next. For fifty clients, that’s fifty switches, every cycle.
That's changing.
New multi-client screens bring Approvals, Pending, Exceptions, and Search together in a single view, spanning every client at once. Each row shows which client it belongs to, and you can approve, reject, cancel, and run payee checks without leaving the screen.
Your existing permissions and approval limits carry over: you'll see everything on your account and act on whatever you're authorised for.
Want a preview? Get in touch with us.
FX is coming to the payment flow
Every cross-currency payment that runs through a separate FX provider is work your finance team does twice: two platforms, two reconciliations, and two sets of data that don't talk to each other.
FX touches treasury, finance, and operations, but rarely has a single owner. The cost of managing it chasing payment status, correcting beneficiary details, and reconciling across systems, never gets measured. And most providers still won't show you what the conversion actually costs.
The more international payments you process, the more that fragmentation drains time and resource. Something's coming to Modulr to change that.
We've built currency conversion into the same platform as your payments, accounts, and cards, so conversion and reconciliation happen in one flow, not across two systems. Rates come straight from mid-market, with no hidden margins. Over the coming weeks we'll break down exactly what that means: how conversion works, and how reconciliation fits in.
If your business makes cross-currency payments and wants to see what consolidated FX looks like, register your interest for Modulr FX.
The Modulr Portal
Account list redesign
We're redesigning the Account List to make finding and managing accounts faster, especially if you work with large account sets.
You'll keep everything you use today, in a cleaner layout, with more ways to filter accounts across a wider range of details. Account rules are getting easier to view and manage too, so your team spends less time navigating and more time getting things done.
And more...
Modulr selected for the FCA's Scale-up Unit
Modulr has been selected for the first cohort of the FCA's Scale-up Unit for solo-regulated firms, among the first firms regulated solely by the FCA to take part. The unit gives established, fast-growing regulated firms a dedicated point of contact and a hand in shaping future policy. It reflects our decade as a regulated payments provider, now processing more than 200mn transactions and over £180bn in payment value a year for more than 6,000 businesses.
We've partnered with Brain Payroll
We've partnered with Brain Payroll connecting payroll calculation directly to payment execution. The result is a complete, end-to-end payroll workflow, without ever leaving the payroll software.
For businesses using Brain Payroll, that means: One workflow from calculation to payday, no manual handoffs, Payments executed through Modulr's platform, built for accuracy and control, Reliable payments at scale, with full visibility over every transaction
Get in touch to learn how it works for your business.
That's a wrap for August; from joining CHAPS to opening up the commercial VRP sandbox, it's been a big month and there's more to come. If any of these updates could help your team, or you'd like early access to what's coming, get in touch with a payments specialist.
See you next month!
