Who Modulr is
Modulr is a UK payments company that describes itself as a payments automation platform. Modulr FS Limited has been authorised by the Financial Conduct Authority as an electronic money institution since 2016, and Modulr Finance B.V. holds an electronic money licence from De Nederlandsche Bank.
Businesses, the accountants who serve them and platforms that open accounts for their own customers use its accounts, payments and cards. It connects directly to Faster Payments, Bacs and CHAPS, which is why it is one of the banking-as-a-service providers our Accounts & IBANs module connects to.
What it does in your platform
Accounts & IBANs
Provides the e-money accounts behind your customers' balances: sterling accounts with a sort code and account number on the UK schemes, with Confirmation of Payee, and euro accounts with IBANs on SEPA and SEPA Instant.
How the connection works
One connector in the Accounts & IBANs module talks to Modulr's API, signing every request with an HMAC signature, and receives Modulr's webhooks, signed with a secret you provide.
The customer is verified
Modulr's customer verification for partners checks the customer and, once they are approved, issues the customer ID used to open accounts.
An account opens
The module creates the account and gets its details back: a sort code and account number for sterling, an IBAN for euros.
Money arrives
A Faster Payment, Bacs credit or SEPA Instant transfer lands, and Modulr sends a PAYIN webhook with the payment's details.
The ledger books it
The module checks the signature, uses Modulr's payment ID so a payment is never booked twice, and posts it to the ledger and the customer's statement.
Money goes out
Euro payments go by SEPA Instant where the receiving bank takes part, and by SEPA Credit Transfer otherwise. A PAYOUT webhook reports the result.
Next to other providers
Modulr covers sterling and euro accounts from one integration. The module treats it like any other banking partner, so the app, the ledger and the statements look the same whichever partner holds an account.
Moving to another partner later does not change the app, though customers receive new account details under the new partner, a move we plan with you.
When Modulr fits best
A strong fit when
- Your customers are mostly businesses that need UK accounts and fast payments in and out.
- You want sterling and euro accounts through one provider.
- You pay out and collect at volume, on Faster Payments, Bacs and SEPA Instant.
Also worth a look
- A bank such as ClearBank or Griffin, when balances should be bank deposits rather than e-money.
- Swan or Treezor, for eurozone customers who expect a local IBAN.
How we get you live
The contract
We help you get your Modulr account and contract in place, set up as a partner that opens accounts for its customers.
The products
We agree the account products with you, sterling, euro or both, and which payment types Modulr switches on, such as CHAPS or SEPA Instant.
The keys
The API key, the HMAC secret and the webhook secret stay in your platform's secrets, and every request is signed with them.
A full test run
The flow runs first in Modulr's sandbox, where test money can be credited to accounts to simulate payments coming in.
