THANK YOU FOR SUBSCRIBING
Modulr raises 18.9M Pound's to expand its Payment Platform
Modulr intends to use the newly raised capital to expand its payments platform and step into new products and markets, including European expansion
Fremont, CA: Modulr, the U.K. fintech firm that offers 'Payments as a Service' as an alternative to commercial and wholesale transaction banking, has secured £18.9 million in growth funding. Highland Europe was led the round with participation from existing investors of the firm, including Frog Capital.
Modulr intends to use the newly raised capital to expand its payments platform and step into new products and markets, including European expansion. The firm secured funds to date to just over £43 million, not including a £10 million grant from the Capability and Innovation Fund.
"We are solving the problem of relationship and technical access to commercial and wholesale transaction banking," co-founder and CEO Myles Stephenson tells TechCrunch. "We're providing a complete alternative to using a bank for payments: technology, regulatory permissions, and direct access to the payment schemes."
Last year, Modulr became one of only a few non-banks to gain direct access to Faster Payments and Bacs, the two main U.K. bank payments schemes. The fintech is also a "principal" issuing member of Visa.
"We see ourselves as the plumbing layer behind the scenes -- delivering the payments infrastructure that enables other businesses to automate payment flows and reconciliation, embed payment flows within their platform, and build entirely new payment services for their customers," adds Stephenson.
To date, businesses across lending, fintech, alternative banking, accounting, travel, and more have processed over £25 billion in payments through the Modulr platform, which counts Revolut as one of its largest customers. Other partner clients include Sage, Liberis, Salary Finance, and Iwoca.
In terms of competition, Stephenson says Modulr is typically replacing "the payment services provided by a bank combined with a technology service such as Bottomline Technologies." (Although, of course, there are other modern Payments as a Service providers, including challenger bank Starling).
"What we think makes us stand out is our sole focus on being a B2B and infrastructure provider with access to, and trust of, key regulators and payment networks/schemes," he adds. "This means we have the same level of access to payment schemes as a bank provides, but backed by our resilient, reliable, and powerful API platform."
See also: Top Payment and Card Solution Companies