Payments as a Service API platform for digital businesses Modulr has announced that it has become a direct participant in the Faster Payment Service (FPS).
The Edinburgh firm is one of a few ‘non-banks’ that will become a direct participant in the service.
The new access will enable Modulr to pioneer greater payments innovations and improve service offering to clients through direct access to the UK payment systems.
The Payments as a Service API platform has announced that it has become a direct participant the Bank of England’s financial market infrastructure, Faster Payment Service (FPS).
The Edinburgh-based firm has become one of a small number of non-bank payment service providers to hold an account in the Bank of England’s Real-Time Gross Settlement (RTGS) system, allowing the FinTech to settle payment obligations in central bank money under its Modulr FS Limited entity.
This follows an assessment by the Financial Conduct Authority (FCA).
This has been achieved under a new settlement account policy directive initiated by the BoE that enables direct access to payment systems through provision of settlement accounts to non-bank PSPs.
Modulr will now process payments without going through a commercial bank, a move designed to provide greater clarity on the location and protection of the funds.
In addition, it will technically connect directly to the payment schemes removing the operational reliance on third-party bank systems. Following an initial live proving…