By 
The UK’s Financial Conduct Authority (FCA) has taken measures to restrict customer onboarding for Payments-as-a-Service provider Modulr until it aligns with the latest regulatory requirements.
In early October 2023, the FCA imposed a restriction on Modulr, temporarily preventing the company from onboarding new partner clients, including agents and distributors who rely on its payments infrastructure for card and account services.
Modulr currently serves as a payments infrastructure provider for more than 200 prominent clients, including companies like Revolut, Wagestream, Sage, and BrightPay. The company processes transactions with an annualized value exceeding £100 billion.
Modulr’s decision, as stated to Sifted, reflects its commitment to ensuring compliance with the numerous new and revised UK regulations set to take effect in 2023 and 2024. These regulatory updates encompass the new UK consumer duty, modifications related to reimbursement for push payment fraud, and a prohibition on incentive marketing for high-risk assets such as cryptocurrencies.
Modulr has begun notifying its new partners that onboarding may be delayed until the first quarter of 2024. However, the firm did not provide specific details regarding the exact deadline for this compliance transition.
Comments