The FinTech Modulr today announced it has joined Visa as a principal issuing member, granting it direct access to the industry-leading global payments network. The new partnership will add extra functionality and benefits to Modulr’s offering, including optimised pricing, improved speed to market and simpler ways to launch Visa products.
By removing the requirement to go through an intermediary bank, Modulr’s membership eliminates extra layers of friction and complexity, and gives them the ability to issue Visa products directly, meaning greater control over the FinTech’s delivery, payment infrastructure and scheme compliance issues.
Modulr will use the partnership to further expand its customer base in Europe, with a view to launching both consumer and business card capabilities for partners in the future, as well as additional issuing currencies. The partnership will also be used by Visa and Modulr to drive adoption within its key market verticals, including travel and alternative banking.
Myles Stephenson, CEO of Modulr, comments: “Gaining direct access to key financial infrastructure, such as the Visa network, means that we gain more control and are able to deliver faster, simpler and increasingly friction-free full payment capability to our clients. By opening up access to non-banks such as ourselves, it also helps to provide a more level playing field for competition in the sector.
“We look forward to extending the functionality of Modulr’s core platform with a leading card scheme, enabling us not only to build a more reliable service, but to pioneer payments innovations even faster.”
Jill Docherty, Head of Business Development, UK & Ireland at Visa, comments: “We are thrilled to announce our partnership with Modulr, an exciting payments platform that enables digital businesses to offer innovative, user friendly, payment solutions. We look forward to working with Modulr as it looks to expand its portfolio and grow across key sectors in Europe such as travel. We look forward to seeing how our partnership will enable even more businesses across the UK and Europe to benefit from Visa products, driven by powerful payment solutions built by Modulr.”
In 2019, Modulr became one of only a few non-banks to gain direct access to Bacs and Faster Payments and recently won Best Initiative from an SME at the Card & Payments Awards 2020.
Through direct access to Faster Payments, Modulr holds an account in the Bank of England’s (BoE) Real-Time Gross Settlement (RTGS) system, allowing the FinTech to settle payment obligations in central bank money under its Modulr FS Limited entity (FRN 900573). And through direct access to Bacs, Modulr takes full control of its Bacs payment flows and removes any reliance on third-party banking partners. It has now done the same with its Visa principal issuing membership.
Modulr, which powers the likes of Sage, Liberis, Salary Finance, Iwoca and Paxport, is a Payment as a Service API platform created for digital businesses that need a faster, easier and more reliable way to move money. Backed by investors, Blenheim Chalcot and Frog Capital, Modulr has raised a total of £35m in funding since inception in 2016. The FinTech was most recently named as one of 25 Top Startups to work for in the UK by LinkedIn.