Product Update - October 2026

In this month’s Modulr Product Update, we cover:

• Our latest product launch: Modulr FX, which gives you a single place to convert balances, fund cross-currency card payments, and manage multi-currency operations.
• Changes to Halifax’s Open Banking service, which has moved under the Lloyds Banking Group.
• Security updates on the Bacs Payment Services Website.
• Our recent collaboration with Innovate Finance and BBC StoryWorks to produce a short film on how fintech is changing everyday life for small business owners.
  
  Dive in to explore what’s new and what’s next.

New products

Modulr FX is now live

Modulr FX lets you make internal account-to-account transfers to move funds between two accounts in your name held in different currencies on the Modulr platform.

That means fewer third parties and more control over how you handle funds across accounts. You can choose to perform an exchange immediately or request an exchange rate quote before you exchange.

Take a look at the guides below to learn more:

Currency conversion via the API
Currency conversion through the Modulr Portal

Get in touch with your account manager if you'd like to talk through what this means for your business.

Coming soon

You’ll soon also be able to create cross-currency funding rules for any virtual cards attached to your Modulr accounts.

With this, you’ll be able to automatically exchange funds from a linked account in a different currency when a card transaction authorisation happens and there are insufficient or no funds in the authorisation currency.

This will give you flexibility to hold your preferred currency, avoid stray balances, floats, and double conversion charges, and issue virtual cards in a different currency without worrying about prefunding in every currency that you issue cards in.

Important notice

Open Banking: Payment initiation (PIS) and variable recurring payments (VRP)

Lloyds Banking Group stops supporting new Open Banking requests under Halifax brand

Lloyds Banking Group have withdrawn Halifax Digital as of 3 November 2026, and as such has stopped supporting new Open Banking requests under the Halifax brand.

Now, any request to create a new Halifax consent or payment through Modulr PIS or VRP will be rejected with a 404 Not Found and the message "Halifax URL not supported".

Modulr has removed Halifax from the GET ASPSP which will return a list of account servicing payment service providers/banks endpoint. Existing long-lived Halifax consents, such as VRP consents, are not affected and will keep working.

What you should do: create all new consents and payments for Halifax customers under Lloyds. If you hardcode or cache Halifax as a provider, please update it to Lloyds so payments continue to work.

Upcoming changes

Direct Debit Collections

Bacs Payment Services Website: two-factor authentication

To improve security of the Bacs Payment Services Website (PSW), two-factor authentication will become mandatory on the PSW from 11 December 2026.

The PSW is used by Direct Debit Collections service users to manage users and challenge Direct Debit Indemnity Claims (DDIC).

How to enable two-factor authentication

Before you start, you will need:

• An authenticator application (app) or tokenised authenticator. For most users, a mobile phone authenticator app is the easiest option.
• A modern browser such as Microsoft Edge, Google Chrome, Safari, or Mozilla Firefox. Microsoft Internet Explorer and Internet Explorer compatibility mode in Edge are not supported on the PSW.

Once you have an authenticator app and modern browser:

1. Log in to the PSW here: https://paymentservices.bacs.co.uk/
2. Go to My Profile in the top-right corner
3. Click Enable two-factor authentication
4. Scan the QR code displayed on the screen with your authenticator
5. Enter the six-digit code generated by your authenticator and click Verify
6. You’ll see confirmation that two-factor authentication is now enabled

For more guidance View Pay.UK’s two-factor authentication set-up guide

And more...

Company news

Makars Mash Bar: the real human impact of payments automation

We frequently share stats, figures, and examples of how our payments automation platform improves operational efficiency and gives time back to SMEs. But the real human impact is a story best told by business owners themselves.

This is why we partnered with the Value Generation series, produced for Innovate Finance by BBC StoryWorks, exploring how fintech innovation is changing everyday life.

Check out the video, which shows how Makars Mash Bar, a much-loved Edinburgh restaurant, reduced time spent on payroll by 83% when they switched to Modulr.

Watch the full video here

That’s a wrap for October. From preparing customers for the Halifax to Lloyds switch to strengthening Bacs security with two-factor authentication, it’s been a month focused on keeping payments secure and resilient as we build toward what’s next. 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. Contact us now.

See you next month!