Modulr secures Confirmation of Payee contract for HMRC

The contract was awarded under the Open Banking Dynamic Purchasing System (DPS), a procurement framework introduced in early 2024. As part of the agreement, Modulr will deliver payment validation services to enhance the security of HMRC’s transactions with individuals and businesses. CoP, a fraud prevention mechanism, ensures the real-time verification of bank account details with receiving banks and payment institutions, aiming to reduce errors and unauthorised transactions. 

The contract marks Modulr’s inclusion as one of the initial suppliers under the Open Banking DPS framework, managed by Crown Commercial Service (CCS). This system streamlines procurement for public sector organizations, offering predefined terms and services designed for their needs. 

Commenting on the development, Modulr CEO Myles Stephenson said the agreement underscores the role of modern payment technology in strengthening public sector services. He added that the company aims to support HMRC by improving the security and efficiency of its payment processes. 

The CoP service is a regulatory requirement for all payment service providers, mandated to be operational by October 2024. Since its introduction in 2020, CoP has facilitated over 2.5 billion checks, with an average of 2.1 million conducted daily as of September 2024. 

Modulr’s connectivity within the payment network spans systems like CHAPS, Open Banking, SEPA, SWIFT, and multi-currency account issuance, enabling a broad range of financial services for its clients.

What else has Modulr been up to? 

In November 2024, Modulr announced that it completed the acquisition of Nook, an accounts payable disruptor. By moving forward with the acquisition, Modulr intended to deliver Nook’s functionality to its network of accountants and businesses already using its payment products. 

Both Modulr and Nook shared a commitment to address complexities, mitigate manual steps, and optimise the security of business payments. In addition, the deal aimed to focus on removing the need for multiple platforms for the management of financial operations, including paying supplier invoices, processing payroll, managing treasury, and accessing finance.