Modulr Becomes First Non-Bank PSP with Direct Access to All Three Major UK Payment Schemes

Modulr has become a direct participant in CHAPS, the UK’s high-value, same-day payment scheme, settling transactions directly at the Bank of England. This move is significant for fintech professionals as it makes Modulr the only non-bank payment service provider with direct access to all three major UK payment schemes: Faster Payments, Bacs, and CHAPS.

What was announced

The announcement confirms that Modulr, a payments automation platform, has achieved direct participation in CHAPS (Clearing House Interbank Payments System). By settling directly at the Bank of England, Modulr removes the need for intermediary clearing banks for high-value transactions, granting the firm greater control over its internal payment flows and increasing operational efficiency for its client base.

CHAPS is a cornerstone of the United Kingdom’s financial infrastructure, typically used for time-critical, high-value payments such as corporate treasury transfers and property settlements. The scale of the network is immense; according to Bank of England data, the system settled £93.9 trillion across a record 53.3 million payments in 2025. This represents an average daily settlement volume of £371.3 billion every working day.

For Modulr, this integration completes a "triple crown" of UK payment connectivity. The firm is now the only non-bank payment service provider (NBPSP) to hold direct access to Faster Payments, Bacs, and CHAPS. This level of integration is designed to support the scaling requirements of Modulr’s customers, providing a resilient alternative to traditional banking rails while maintaining the speed and reliability required for high-stakes financial movements.

"Becoming a direct participant in CHAPS is a landmark moment for Modulr; we are now the only non-bank payment service provider in the UK connected directly to all three major UK payment schemes, which uniquely positions us in the market to provide a resilient payments automation platform that scales with our customers"

Myles Stephenson, Founder & CEO, Modulr.

The companies involved

Modulr is a payments automation platform designed to help businesses automate, embed, and scale their payment operations. By providing an alternative to traditional commercial banking, the firm enables digital businesses to integrate payment functionality directly into their own platforms via API. Modulr has positioned itself as a critical infrastructure provider in the UK and European fintech ecosystems, focusing on eliminating the manual processes often associated with business payments.

The Bank of England serves as the central bank of the United Kingdom. Beyond its role in monetary policy and financial stability, it operates the Real-Time Gross Settlement (RTGS) service, which is where CHAPS payments are settled. Historically, direct access to these settlement accounts was reserved for traditional high-street banks. However, the Bank has gradually expanded access to non-bank payment service providers to foster competition and innovation within the UK financial sector. This shift allows firms like Modulr to hold settlement accounts and compete on a more level playing field with established financial institutions.

What FF News has reported before

FF News has closely followed Modulr’s trajectory as a key player in the UK’s regulatory and operational landscape. The firm was recently highlighted for its role in national innovation initiatives, as seen in Modulr Joins First Cohort of FCA Scale-up Unit to Drive UK Financial Innovation and FCA Scale-up Unit Welcomes ClearScore, Modulr, and Zilch to Boost UK Fintech Growth. Beyond domestic growth, the company has been active in broadening its reach, as reported in Modulr Bolsters European Leadership with Key Appointments to Drive Regional Expansion. Additionally, Modulr’s name has appeared in broader industry reports regarding consumer protection, such as UK Fraud Victims Recover £243 Million as PSR Reports Major Progress in APP Fraud Reimbursement.

What this means

This is a major competitive escalation. By securing direct access to CHAPS, Modulr has effectively removed the "glass ceiling" that often separates fintechs from Tier-1 banks. For years, non-banks were forced to rely on their own competitors - the big banks - for clearing services. Modulr’s new status eliminates this dependency for high-value payments, offering them superior margins and technical autonomy. Other non-bank providers are now under significant pressure to match this level of infrastructure access or risk being relegated to "second-tier" status. Watch for Modulr to aggressively target corporate treasury and legal sectors, where CHAPS reliability is non-negotiable.