A leading British fintech group will this week announce a strategic investment from a division of PayPal as it seeks to grow its share of the $2trn global payments industry.
Sky News understands that PayPal Ventures is injecting £9m of new funding into Modulr, which provides infrastructure enabling corporate clients to offer seamless payment services to their end-users.
The fundraising will be announced publicly on Wednesday.
It will be the first significant capital injection into Modulr since a funding round earlier this year raised almost £19m.
The company’s existing shareholders include Blenheim Chalcot, the leading venture-builder, and Highland Europe.
In total, it has raised more than £60m from investors since it was established in 2015.
In the last year, Modulr has gained access to the Bank of England’s payments infrastructure by becoming a directly connected participant in the Bacs scheme and taking part in the Faster Payments scheme.
It also has partnerships with Visa and Mastercard, and was recently awarded an electronic money licence by Ireland’s central bank.
Modulr has offices in London, Dublin and Edinburgh, and includes UK-based fintechs Revolut and Iwoca among its customers.
The company describes its core offering as a “payments as a service API platform”, and focuses on working with customers which serve small and medium-sized businesses.
Myles Stephenson, chief executive of Modulr, said the PayPal Ventures investment represented an “important milestone” for the company.
“Modulr lowers the barriers to bringing payments into a platform, creating endless new possibilities for our customers while allowing them to focus on their core competencies.
“The investment from PayPal Ventures enhances our ability to execute on that vision.”
Anil Hansjee, partner at PayPal Ventures, said: “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 and will undoubtedly expand end-users’ access to fast, reliable and secure financial services.”