Ever wondered if your business software could just handle all its own payments, without you constantly needing to log in and out of a separate bank account? That's pretty much the core idea behind Modulr. It's not a bank in the traditional sense, but a powerful 'payments engine' that hums away behind the scenes, automating your financial workflow.
Think of Modulr like the engine in a car. You stay focused on the dashboard—your accounting software or business app—while Modulr does all the heavy lifting under the bonnet. It processes payments, spins up new accounts, and manages funds, all without you ever having to leave your main platform. It’s this ‘embedded’ approach that makes it so ridiculously effective for modern businesses.
This infographic paints a great picture of how Modulr becomes a central hub, connecting your software directly to payment rails and account functions.
As you can see, Modulr slots right into the tools you already use, effectively turning them into powerful financial command centres.
So, instead of being a separate app you have to open, Modulr provides something called an API (Application Programming Interface). This is just a technical way of saying it gives software developers the building blocks to weave payment capabilities directly into their own products. For a business owner, this is a game-changer. Financial tasks stop being a separate chore and become a natural, seamless part of your day-to-day workflow.
One crucial point: Modulr is an Electronic Money Institution (EMI), authorised and regulated by the Financial Conduct Authority (FCA)—it isn't a bank. This means that while it provides payment services, your funds are safeguarded in a protected account at the Bank of England, kept completely separate from Modulr's own finances.
This structure provides a rock-solid level of security and reliability, so you can manage funds and make payments with complete confidence. Of course, before diving into tools like this, it's vital to have the basics sorted, which is why we put together a guide on how to set up a business bank account.
Founded back in 2015, Modulr has quietly become a massive player in the fintech world. The platform now processes an annualised transaction value of over £100 billion and works with more than 200 top-tier clients, including household names like Revolut, Sage, and BrightPay. That kind of scale tells you just how integral it's become to the UK’s payment infrastructure. You can find out more about its journey and funding over on generalatlantic.com.
To really get what Modulr is all about, you need to lift the bonnet and have a look at the engine. These aren't just techy buzzwords; they're the practical tools that give your business a serious upgrade in speed, control, and reliability when it comes to your finances.
At its heart, the entire platform is built around a powerful API. Think of this as a super-secure bridge that allows your own business software to talk directly to the UK’s payment networks. Once that bridge is built, a whole host of powerful features are unlocked.
To give you a clearer picture, this table breaks down Modulr's key technical features and explains the direct, real-world benefits they bring to a business.
These features work together to create a system that's not just faster, but fundamentally smarter than traditional banking.
One of the standout features is the ability to spin up unique e-money accounts on demand. Let’s say you need a dedicated account for a specific client project, or you need to keep supplier funds completely separate. With Modulr, you can instantly generate a new account that comes with its own unique sort code and account number.
This isn't just a virtual 'pot' or a sub-account within your main bank account. It’s a completely distinct, addressable account that can send and receive payments on its own. For agencies, property managers, or any business that handles client money, this level of flexibility is a game-changer for managing complex financial workflows.
Say goodbye to tedious manual payment runs and uploading CSV files. Modulr automates your outbound payments by plugging you directly into the UK’s major payment schemes, offering a few different flavours:
This degree of automation doesn’t just save a few minutes; it slashes the risk of human error and can free up hours of admin time every single week. For any business looking to scale up efficiently, this is a massive win, especially when it’s paired with the best cloud accounting software for startups.
The real magic, though, is in the real-time notifications. Modulr uses something called 'webhooks' to instantly ping your own software the second a payment lands or leaves. This gets rid of all the guesswork, giving you a constantly updated and accurate picture of your cash flow without ever having to manually check a bank statement.
While the technical specs are impressive, the real magic of Modulr happens when you see it solving genuine, everyday business problems. It's not a one-size-fits-all tool; its impact is most profound in sectors wrestling with high-volume, complex, or time-sensitive payment workflows.
Bringing a platform like Modulr into your operations is a massive step toward meaningful business process optimization, unlocking serious efficiencies and cost savings for all sorts of organisations. For many, it’s the moment they switch from being reactive with their finances to proactively managing payments with slick automation.
For accounting firms and payroll providers, Modulr is a complete game-changer. These businesses are often juggling payments for hundreds of clients, a process that’s traditionally been a nightmare of manual reconciliation, endless spreadsheets, and the constant risk of human error.
Modulr just gets rid of these bottlenecks. Picture this: managing every client payment—from salaries to supplier invoices—from a single, integrated dashboard that lives inside your existing software. No more clunky CSV uploads or logging into dozens of different bank portals. Payments are triggered automatically, and reconciliation happens in real-time.
This shift saves countless hours of admin, but the real win is that it frees up accountants to focus on high-value advisory work instead of getting bogged down in repetitive payment runs.
The travel and eCommerce worlds run on two things: speed and trust. Delayed payments can wreck supplier relationships, while slow refunds will kill customer loyalty in a heartbeat.
Modulr provides the rails to execute instant payouts and smooth out the refund process, building a much more resilient operation. For example, a travel agency can pay a hotel supplier in seconds to confirm a booking on the spot. This is especially vital for businesses like those we work with through our eCommerce accounting services, where cash flow and supplier relations are absolutely critical.
By embedding these capabilities directly into their workflow, businesses can create smoother, more reliable financial operations that directly benefit everyone they work with.
The real power of Modulr isn't in using it as just another separate tool. Its strength lies in how it weaves directly into the business software you already rely on every day, like Sage, BrightPay, or Xero, effectively turning them into powerful payment command centres. This isn't just about convenience; it's a fundamental upgrade to how your business operates.
Imagine this: you approve a payroll run in your software, and that's it. You can watch as all the payments are automatically executed by Modulr. No more manual steps, no clumsy CSV file uploads, and definitely no logging into a separate banking portal just to duplicate the work you've already done. The connection is direct and completely seamless.
This deep integration creates a single, reliable source of truth for your payment operations, giving you real-time financial data right where you need it most.
By linking Modulr to your core platforms, you’re not just connecting apps – you’re building an automated financial ecosystem. This approach delivers some serious advantages that go far beyond simply saving a bit of time.
The goal here is to make your payment operations an invisible, efficient background process, rather than a time-consuming manual headache. This kind of automation frees up your team to focus on the strategic work that actually drives business growth.
This is a core principle behind effective technology transformation for businesses, where plugging in the right tools leads to measurable improvements in efficiency. Modulr’s rapid scaling and success in the UK fintech scene really highlight the demand for these kinds of embedded solutions. The company's estimated annual revenue has hit around $60.3 million, supported by a productive team of 365 employees. You can discover more insights about Modulr's impressive company growth on growjo.com.
Handing over any part of your payment operations means you need complete trust. For any business owner, two questions always come top of the list: is it secure, and what does it cost? Modulr has built its platform around solid answers to both.
First up, security. It’s crucial to understand that Modulr isn’t a bank. It’s an authorised E-Money Institution (EMI), regulated by the Financial Conduct Authority (FCA). This isn’t just jargon; it’s a key distinction in how your funds are kept safe.
Unlike a high street bank that can lend out customer deposits, Modulr safeguards 100% of your money in segregated accounts at the Bank of England. Your funds are never mixed with its own business finances, creating a powerful layer of protection.
When it comes to pricing, Modulr’s model is built to grow with you. You’ll typically see a combination of a monthly platform fee and small charges for each transaction you make. This structure means your costs are directly tied to how much you actually use the service.
The final price is tailored to your specific needs, like how many payments you’re sending and which features you need access to. This often works out to be far more cost-effective than traditional banking, which can be rigid and full of hidden fees. It's also worth thinking about how a streamlined system can reduce indirect costs, like expensive chargeback fees.
Ultimately, you pay for what you use, making it an efficient choice for any business looking to automate its financial workflows. For more detail on how these costs might fit into your broader operations, take a look at our expert payroll services.
Even when you get your head around the features, it’s only natural to have a few practical questions before committing to a platform like Modulr. Let's tackle some of the most common queries we hear from business owners to help you get the full picture.
In short, no. Modulr is an authorised and regulated Electronic Money Institution (EMI), which is a key difference.
A bank can lend out the money you deposit. Modulr, on the other hand, operates under Financial Conduct Authority (FCA) rules that require it to safeguard 100% of client funds. Your money is held in a segregated account at the Bank of England, kept completely separate from Modulr’s own business finances. It’s ring-fenced for your protection.
This really depends on your business and how you plan to use the platform. Because Modulr was built as an API-first platform, businesses with developers on hand can find the technical side surprisingly quick.
If you’re plugging it into existing software like Sage or BrightPay, the setup is often even faster since the connections are pre-built. Generally, the process involves an application, some standard compliance checks, and then the technical integration itself.
Modulr knows that payments are the lifeblood of your business, so they don't leave you in the dark. Their support is typically structured to help you at every stage:
A company's support often reflects its internal culture. It's telling that in 2020, Modulr was recognised in the UK’s Best Workplaces™ ranking, a nod to its focus on employee trust and teamwork during a phase of major growth. You can read more about Modulr's workplace culture on their newsroom.
Ready to see how Modulr and expert financial guidance can transform your business operations? The team at GenTax Accountants is here to help you integrate powerful payment solutions and turn financial data into a strategic advantage. Get in touch with us today to learn more.
