UK-based Modulr, a Payments as a Service API Platform for digital businesses, has revealed that its Dublin-based entity is now licensed as an electronic money institution (EMI) by the Central Bank of Ireland.
The Modulr team noted:
“This is an important step in enabling our European arm to provide efficient, scalable and reliable payment services to customers across the European Union.
As explained in a release, the European division of Modulr has been established to offer services to customers based in the European Union (EU). Modulr is focused on driving instant payments “expertise” into the Eurozone, in order to improve how wholesale and commercial payments are processed.
The Fintech firm provides payments infrastructure that’s used by established companies such as Sage, Revolut, Mode and Iwoca.
As stated in the announcement:
“Following strong business growth in the UK over the past four years, the newly granted EMI license will enable [Modulr] to offer [various] payments products, including its award-winning payments platform, through its powerful API to EU markets.”
Modulr also brings its expertise of real-time payments to SEPA Instant, which is the Euro’s instant payments scheme. As noted in the release, Modulr’s experience with Faster Payments will help it “unlock the potential” of the new scheme by offering convenient access for European software firms, merchants, and specialist banks.
The announcement also mentioned that the “true” potential of a digital API-based alternative to commercial payments will “rely upon an agile and efficient ‘behind the scenes’ payments process, which has historically been inaccessible and unaffordable to SMEs and enterprise alike.” As explained by the Modulr team, this information “comes from soon to be published research commissioned by Modulr, which reveals contemporary insight … into the hard cost of payment processes [and] the hidden impact on customer experience as well.”
Myles Stephenson, CEO at Modulr, stated:
“The opportunity for a digital alternative to commercial and wholesale transaction banking is significant as software businesses across multiple industry sectors are identifying the need to deliver new functionality and efficiencies to their customers by embedding payments in customer journeys. We plan to build a truly digital, frictionless payments infrastructure for software platform partners to provide new payment experiences to more than 500m people.”
Stephenson believes that his team has the experience and expertise in digital payments and API integration needed to offer key services to European businesses that are interested in streamlining how they make, receive and manage payments.
John Irwin, General Manager, Modulr Europe, remarked:
“Our digital platform and experience can transform the payments business. For too long, European payments have relied on the same technologies.”
Modulr has reportedly moved more than £40bn for clients such as Sage, Revolut, and Paxport through its platform which has “an uptime of 99.999%.”
Modulr offers this scale, reliability, and quality of service by investing in its own financial access and “achieving principal and direct access to critical payments.”
In September 2020, Modulr became the principal issuing member of Mastercard. The company had said that it would be offering more seamless digital payments solutions.