UK-based payments infrastructure provider Modulr is expanding to the United States through a partnership with FIS (Modulr), which invested in Modulr through its venture arm back in 2021 (Modulr). The deal will see Modulr provide the underlying technology for FIS's Money Movement Hub, a platform that gives US banks a single API to connect to multiple payment rails, including FedNow and TCH RTP. This marks Modulr's first market outside of Europe.
A Different Playbook for the US
Modulr operates differently in the US than in its home markets. In the UK and the European Union, the company holds its own e-money licences in the UK and the Netherlands and directly onboards fintechs and brands onto its platform. In the US, Modulr doesn't have its own licence and is instead starting as a software provider to FIS.
What Comes Next?
Modulr's direct competitors in the US typically partner with sponsor banks and then offer that as a BaaS solution to fintech companies and non-financial brands. The question is whether Modulr will pursue that route as well, or keep its focus on powering infrastructure for the likes of FIS. But the main question is, given the existing investor relationship, is this a true US market entry or just a deepening of ties with FIS?
