Payments as a Service platform Modulr has joined Faster Payment Service (FPS), a UK banking initiative to reduce payment times.
The fintech also holds an account in the Bank of England’s (BoE) Real-Time Gross Settlement (RTGS) system, authorising it to make settlements in central bank money.
With the new access, Modulr can process payments without approaching a commercial bank. It can also connect directly to the payment schemes with greater control over delivery.
The move is expected to eliminate dependence on third-party bank systems and improve services.
Modulr CEO Myles Stephenson said: “This is a significant milestone for Modulr enabling greater control over our payments infrastructure allowing us to drive further innovation faster. Coupled with the £10m awarded to us from the RBS Alternative Remedies Package, it allows us to compete with banks, and bring greater value to our clients.
“This capability will support our rapidly scaling organisation as we migrate volume in the coming months; in October alone, we processed over £1.3bn of Faster Payments value.”
Pay.UK CEO Paul Horlock said: “We are pleased to welcome Modulr on board to provide real-time payments on a level playing field with the best-known banks on the UK high-street.
“This is possible because Modulr is now using its own settlement account with the Bank of England, rather than making payments through a commercial bank.”
One of the retail payment authorities in the UK, Pay.UK operates domestic payment networks including Faster Payments.