Modulr Gains Direct Bacs Participation for Embedded Payments in UK
On December 19, 2019, Modulr announced it had gained direct participation in Bacs, the UK's core direct debit and credit payment infrastructure. This development means Modulr no longer relies on third-party banks to process Bacs payment flows, giving its fintech and business clients greater independence and reliability. The platform enables instant account creation, 24/7 management via API, and seamless integration into existing business software for automated real-time payments and reconciliation.
Modulr had previously joined the Faster Payments Service (FPS) via a Bank of England RTGS account in June 2019, progressively embedding itself into UK payments infrastructure as a non-bank payment service provider. Operating under Modulr FS Limited, an FCA-authorized Electronic Money Institution, the company positions itself as enabling reliable money movement without traditional banking dependencies. The direct Bacs access is expected to lower costs and reduce friction for digital businesses seeking to embed payment accounts directly into their systems.
- Non-bank PSPs gaining direct access to core payment rails reduces reliance on traditional bank intermediaries, a key enabler for embedded finance
- Modulr's progressive infrastructure access (FPS and now Bacs) positions it as a credible alternative to bank-dependent BaaS models in the UK