Following this announcement, the UK department has hired Modulr through the ‘Open Banking (Data, Digital Payments & Confirmation of Payee Services) Dynamic Purchasing System (DPS)’, which was established by the Crown Commercial Service (CCS) at the turn of the year with the ultimate aim of reducing the costs of receiving money into public sector organisations, as well as reducing the risk of fraud for customers and businesses.
The move represents a significant step from both a public and a private-sector perspective for multiple reasons, providing an example of a government entity using the DPS to source a new supplier in a secure and efficient manner.
HMRC’s appointment of Modulr represents the first Confirmation of Payee contract to take place via the DPS, which is referred to by CCS as ‘RM6301’ (‘RM’ is used in all CCS agreement reference numbers). Frameworks (or agreements) overseen by CCS were developed in order to help public- and third-sector buyers procure goods and services from a list of pre-approved suppliers, with agreed terms and conditions and legal protections. At the same time, dynamic purchasing systems are one of four types of agreements that are available through CCS and allow aspirant suppliers to join at any time through their lifespan.
According to the Global Government Fintech, HMRC did not publicise a notification of the CoP tender opportunity as it used what is referred to as a ‘call-off’ process, meaning that there was no requirement for the company to publish a Prior Information Notice. The RM6301 agreement is expected to support the adoption of innovative, secure, and cost-effective value and services for the prevention of fraud and error, while also optimising the manner in which SMEs benefit from a more simple and efficient route to market.
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