Modulr, an embedded payments platform, announces its acquisition of Nook, an innovator in accounts payable (AP) automation.
Both companies said they aim to address inefficiencies, remove manual steps and improve the overall security of making business payments.
These are significant concerns, as highlighted by Modulr’s survey of 250 accounting practices which revealed that “nearly half (45%) of respondents spend over three hours per week on manual data entry.”
Businesses often have no choice but to use multiple platforms to manage their financial operations, from “paying supplier invoices to processing payroll, managing treasury, and accessing finance.”
For example, 60% of large companies use at least “five separate systems just for accounts payable.”
Modulr says it is bringing Nook’s functionality to its network of accountants and businesses using its payment products.
Security and efficiency remain central to the platforms, with features such as Confirmation of Payee (CoP) to validate account details “in real-time, helping prevent fraud across payment processes.”
Established in 2021, Nook’s platform aims to simplify AP workflows for businesses and accountants, offering full invoice lifecycle management from receipt, through approval to payment and reconciliation with accounting software.
Advanced tools such as Optical Character Recognition (OCR) enhanced with AI ensures precise line-item capture of each invoice, while customizable approval workflows and seamless accountant collaboration remove manual steps and save time.
Myles Stephenson, Chief Executive and Founder of Modulr, said that access to payment services for businesses is “fundamentally broken.”
Stephenson added that Modulr was created to “enable new standards for business payments, and this acquisition accelerates them closer to that vision.” They also mentioned that by combining Nook’s AP automation platform with their embedded payments expertise, they’ll be able to “provide existing and prospective customers with more products that save time and money for business owners and accounting professionals.”
Joe Lines, Co-Founder, Nook said that they are “embarking on a new chapter in their mission, now part of the Modulr team, to reduce complexity for businesses by combining payment automation with their AP workflow platform.” Lines added that together, they’re equipped to offer an even “more robust solution to help customers grow.”
The acquisition deepens Modulr’s focus on developing solutions that address the needs of businesses.
Following a period of integration Modulr AP, powered by Nook, will reportedly launch in the first quarter of next year.
Stephenson also stated that they now see an “opportunity to expand capabilities and deliver … value to UK and European businesses.” They concluded that this strategic move “strengthens their offerings in invoice management and accounts payable automation, while giving Nook’s customers full access to Modulr’s extensive payments capability.”