This collaboration marks Modulr’s first step in bringing its real-time, API-first payment capability to one of the largest payments markets in the world, the company said in a Wednesday (Jan. 7) press release. Modulr is already available in the United Kingdom and Europe.
“The expansion addresses surging demand from global platforms and financial institutions for scalable solutions that streamline financial transactions and unlock new revenue opportunities,” Modulr said in the release. “With the U.S. payments market projected to grow year on year, businesses are increasingly looking for faster, more efficient payment technology.”
The introduction of real-time payment infrastructure in the U.S. via The Clearing House’s RTP® network in 2017 and the FedNow® Service in 2023 offers the chance to “simplify access, remove complexity and deliver differentiated value,” according to the release.
To that end, FIS has chosen Modulr to provide tech for its Money Movement Hub, the release said.
“Expanding into the U.S. is a natural next step for Modulr as we respond to growing global demand for real-time, reliable payments infrastructure,” Modulr founder and CEO Myles Stephenson said in the release. “Our partnership with FIS is a collaborative launchpad, combining our proven expertise with FIS’ deep market presence to help U.S. financial institutions modernize, innovate and unlock the full potential of instant payments.”
Jim Johnson, FIS co-president for banking solutions, said in the release: “Modulr’s expertise in payments and scalable solutions perfectly complements FIS’ expansive reach, creating a powerhouse for innovation, efficiency and expansion across the money lifecycle.”
Meanwhile, there are misconceptions surrounding real-time payments, which have kept banks from embracing them.
“Real-time payment networks such as the RTP network and FedNow are among the safest rails in modern finance, with fraud rates that are a fraction of those found in checks and wire transfers,” PYMNTS reported in November. “Yet anxiety, not evidence, still shapes how many institutions approach faster payments.”
The PYMNTS Intelligence report “Reality Check: Fact vs. Fiction in Real-Time Payments Fraud” found that, according to data from the Association for Financial Professionals, just 2% of firms reported attempted fraud on RTP or FedNow, compared 63% who reported attempted check fraud.
