PayPal Ventures Invests £9M in Payments-as-a-Service Platform Modulr
On November 18, 2020, Modulr announced a £9 million investment from PayPal Ventures to accelerate its Payments as a Service platform. Modulr's full-stack API handles payment complexities, regulatory requirements, and provides direct Bank of England access, enabling embedded payments for digital businesses and SMB platforms. The investment will be used to develop new products, expand the team, and grow the customer base across lending, banking, fintech, travel, employment services, and accounting verticals.
Modulr's total funding reached £63.3 million following this round, with prior investors including Highland Europe, Frog Capital, and Blenheim Chalcot, plus a £10 million grant. The deal underscores PayPal's strategic interest in embedded payment infrastructure that serves as a BaaS layer for other fintechs and platforms. Modulr's direct connection to the Bank of England differentiates it by offering faster settlement and regulatory compliance as a service.
- PayPal's strategic investment validates the embedded payments infrastructure model and signals growing demand for BaaS payment rails in the UK
- Modulr's direct Bank of England access positions it as critical infrastructure for fintechs and platforms seeking to embed payments without building their own banking connections