UK fintech Modulr gets £9M funding boost from PayPal Ventures
In a latest development, Edinburgh-based fintech Modulr has received £9 million from PayPal Ventures. Modulr is a leading Payments as a Service API platform enables digital businesses and software platforms across lending, banking, fintech, travel, employment services and accounting to easily embed and build new payment products and services within their customer journey.
Allows customers to focus on unique value proposition
With its full stack Payments as a Service API, it handles much of the complexities and regulatory overhead, so that its customers can focus on their own unique value proposition. Modulr’s direct access to the Bank of England facilitates the fast experience that digital customers demand. The latest investment will be used to develop additional products, grow its team and expand its customer base.
Growth amid COVID-19
Modulr is tapping into the massive business to business payments digitisation opportunity by working with platforms that serve small and medium-sized businesses. 2020 has been a breakout year for the company as it signed up a number of large enterprise customers, despite the macro economic challenges posed by COVID-19.
Anil Hansjee, partner at PayPal Ventures said: “More digital businesses are looking to incorporate payments into their existing user experience but either don’t have the expertise or the resources. Modulr is well-positioned to be an enabler of this trend and will undoubtedly expand end-users’ access to fast, reliable and secure financial services. We look forward to working with Modulr as it helps to powers the next generation of digital businesses.”
Myles Stephenson, CEO of Modulr said: “This investment marks an important milestone for Modulr’s modern payments infrastructure. Modulr lowers the barriers to bringing payments into a platform, creating endless new possibilities for our customers while allowing them to focus on their core competencies. The investment from PayPal Ventures enhances our ability to execute on that vision.”
Obtained EMI license
In the last year, Modulr became a directly connected participant of the Bacs scheme, alongside direct participation in the Faster Payments scheme, enabling Modulr to settle and hold funds at the Bank of England. Modulr has further added direct access to Visa and Mastercard, as well as delivering innovative new products including Payment Initiation and Confirmation of Payee. Modulr was most recently granted an electronic money license from the Central Bank of Ireland which marks an important step in the company’s European ambitions.
In total, Modulr has raised £63.3 million including investment from PayPal Ventures, Highland Europe, Frog Capital, Blenheim Chalcot and a £10m grant from the Capability and Innovation Fund. Based in London, Edinburgh and Dublin, the Scottish fintech powers the underlying payments for customers including Revolut, Sage and Iwoca.