Modulr has officially become a direct participant in CHAPS, the UK’s same-day high-value payment scheme, now settling transactions directly through the Bank of England. The payments automation platform joins an exclusive group of financial institutions with direct access to Britain’s critical high-value payment infrastructure.
This development allows Modulr to process large sterling transactions without intermediary banks, reducing settlement risk and transaction costs for its clients. The move strengthens the fintech’s competitive position against traditional banking institutions in the corporate payments space, particularly for businesses requiring urgent high-value transfers.
Direct CHAPS participation typically signals significant operational maturity and regulatory approval, as participants must meet stringent Bank of England standards. The upgrade gives Modulr greater control over payment timing and reduces dependency on third-party banking partners for critical client transactions.
Market watchers note this represents continued infrastructure unbundling in UK payments, with fintechs increasingly accessing core banking rails previously dominated by established lenders.
FXnCO Insight
Corporates using Modulr for treasury operations should expect faster settlement times and potentially lower fees on high-value sterling payments, making the platform more competitive for time-sensitive transactions.
Source: Finextra