UK-headquartered virtual payments services provider Modulr has reportedly entered a contract with HMRC for the provision of Confirmation of Payee (CoP) services, which has been secured under the latest Open Banking Dynamic Purchasing System (DPS).
As per the latest agreement, Modulr will aim to offer payment validation services in order to protect the security of HMRC’s payments to individual consumers as well as businesses.
HMRC has reportedly used Crown Commercial Service’s (CCS) Open Banking DPS, making Modulr one of the “first” suppliers to acquire a contract under this particular framework (which had been officially launched at the beginning of this year).
Modulr CEO Myles Stephenson remarked that the contract demonstrates how payment tech can build on public services.
“As the new supplier contracted under the Open Banking DPS framework for CoP services, we’re committed to enhancing payment security and ease for public sector transactions.”
The DPS, which is currently available to UK central government departments, charities, public entities as well as other organizations, reportedly offers a procurement process with “preset” or fixed contract terms along with range of services that buyers can “filter to meet their needs.”
As noted in the announcement, the said agreement is a supplier contract awarded under the Open Banking (Data, Digital Payments & Confirmation of Payee Services) DPS RM6301 for “provision of CoP services, managed by CCS.”
Modulr’s payment network connectivity now reportedly includes CHAPS, Open Banking, SEPA, SWIFT and account issuance in various different currencies.
CoP is described as a fraud prevention tool that works by validating banking account details in real time with receiving banks as well as payment institutions.
As clarified in the update, all regulated payment service providers were mandated to implement CoP by 31 October 2024.
As of September this year, CoP had reportedly processed over 2.5 billion checks since its roll-out back in 2020, and presently conducts in “excess of 2.1 million checks” on a daily basis.
