UK payments-as-a-service platform Modulr is to bank a £9 million investment from Paypal Ventures.
In the four years since its founding, Modulr has established itself as a digital alternative to traditional banks in the wholesale and transaction payments market, which moves $120 trillion each year.
Over the course of the past year, the firm has become one of the few non-banks to gain direct access to Faster Payments and Bacs. It has also struck partnerships with Visa and Mastercard, and gained an e-money licence in Ireland.
Modulr is specifically targeting the $2.7 trillion incurred through administrative costs - 80% of which is paid by small businesses relying on "old and clunky incumbent banking infrastructure".
Modulr in May raised £18.9 million in a funding round led by Highland Europe for a push into new products and services, beginning with card issuing, as well as an expansion into new markets.
The PayPal investment brings total funding in the firm to £62 million.
Anil Hansjee, partner at PayPal Ventures, says: "More digital businesses are looking to incorporate payments into their existing user experience but either don't have the expertise or the resources. Modulr is well-positioned to be an enabler of this trend."
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