Modulr lands £9m Paypal injection
UK payments as a service startup Modulr will receive a £9m strategic injection from Paypal Ventures, the US firm’s fintech investment arm.
The latest cash infusion brings Modulr’s total backing to £63m, with high-profile investors on board including Highland Europe, Frog Capital and Blenheim Chalcot.
Modulr will put the new funds towards its ongoing expansion efforts during a period of rapid acceleration. It will focus on three key pillars: additional products, new talent acquisition, and initiatives to attract and serve a broader customer base.
Growth in the immediate term will target B2B payments digitisation for SMEs, a global market on the edge of a digital overhaul despite, and partly due to, COVID-19. Modulr’s API slots neatly into a variety of needs: automating payments, simplifying pay-ins, and launching new payment systems across payroll, accounting, lending and more. It is also among only a handful of organisations outside the banking system with access to the Bank of England’s payments infrastructure through Bacs and Faster Payments.
Modulr’s ability to serve the countless businesses without the necessary expertise or resources to implement digital payments in-house makes it an attractive investment and “well-positioned to be an enabler of this trend”, says Anil Hansjee, partner at PayPal Ventures.
A milestone investment
Modulr’s CEO Myles Stephenson calls the investment “a milestone” in the fintech’s ability to execute on its vision of “creating endless new possibilities for our customers while allowing them to focus on their core competencies".
Last month the company took another step towards broadening its customer base by securing an electronic money institution (EMI) license from Ireland’s central bank. Modulr’s European head John Irwin said the grant opens new doors for its operations on the continent which “for too long… have relied on the same technologies”.
Tink partners with Novalnet AG for open banking payments
The Munich-based fintech Novalnet AG, which was founded in 2007 and is one of Europe’s leadingfintech companies, has announced a new partnership with Tink, the Swedish open banking platform currently connected to more than 3,400 European banks.
Novalnet AG delivers payment solutions and fully automated services, from checkout to debt collection. Its solutions are also available worldwide.
According to reports, the fintech company plans to launch a real-time payments feature for merchants across Europe, to expand its current services and enhance the transaction experience it operates through its platform.
The new feature, says Novalnet, will revolutionise payments for ecommerce with transactions being credited to merchant’s accounts almost instantly.
Novalnet partnership with Tink
By partnering with Tink for payment initiation services (PIS) technology, Novalnet will take previous region-specific payment methods and offer a new unified digital payments service to its merchants across Europe.
The fintech’s real-time merchant payments feature, which will be launched initially in Germany and the United Kingdom, will then be integrated across other European markets during 2021.
Speaking about the new collaboration, Emmanuel Kirse, COO of Novalnet, explained, "We expect great things from our strategic partnership with Tink, which is a significant development for both parties.
“With Tink, Novalnet can offer a new set of open banking-related solutions in Europe. The new opportunities offered by this partnership will help both Tink and Novalnet grow together, along with our merchants."
Cyrosch Kalateh, Regional Director for the DACH region at Tink said, “Our partnership with Novalnet is a big step for Tink in the German market, and we are excited to work together to bring new, innovative payments services to merchants across Europe.”
He added, “At the end of 2020 Tink committed to expanding its payment initiation services from five to 10 markets, fuelled by an €85mn investment round. We are proud to add Germany to this list by announcing we have now fully launched Tink’s PIS services in this market.”
Image credit: Novalnet AG