Modulr is a Payments-as-a-Service API platform which enables digital businesses and software platforms across lending, banking, fintech, travel, employment services and accounting to easily embed and build new payment products and services.

The API handles much of the complexities and regulatory overhead, so that its customers can focus on their own unique value proposition. Modulr’s direct access to the Bank of England facilitates the fast experience that digital customers demand.

Already powering the underlying payments for customers including Revolut, Sage and Iwoca, the £9m investment will allow Modulr to develop additional products, grow its team and expand its customer base.

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 undoubtably expand end-users’ access to fast, reliable and secure financial services. We look forward to working with Modulr as it helps to powers the next generation of digital businesses.”

Myles Stephenson, CEO of Modulr, said: “This investment marks an important milestone for Modulr’s modern payments infrastructure. 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.”

In total, Modulr has raised £63.3 million including investment from PayPal Ventures, Highland Europe, Frog Capital, Blenheim Chalcot and a £10m grant from the Capability and Innovation Fund.