UK-based digital payment services provider Modulr has signed a contract with HMRC for the provision of Confirmation of Payee (CoP) services, which was secured under the new Open Banking Dynamic Purchasing System (DPS).
Under the agreement, Modulr will provide payment validation services to protect the security of HMRC’s payments to individuals and businesses.
HMRC used Crown Commercial Service’s (CCS) Open Banking DPS, making Modulr one of the first new suppliers to secure a contract under this framework, which launched at the start of 2024.
Modulr CEO Myles Stephenson
“This landmark contract demonstrates how modern payment technology can build on public sector services,” said Myles Stephenson, chief executive officer of Modulr.
“As the new supplier contracted under the Open Banking DPS framework for CoP services, we’re committed to enhancing payment security and ease for public sector transactions.”
The DPS, which is available to all UK central government departments, charities, public bodies and organisations, provides a procurement process with preset contract terms and a range of services that “buyers can filter to meet their needs”, according to Modulr.
The agreement is a new supplier contract awarded under the Open Banking (Data, Digital Payments & Confirmation of Payee Services) DPS RM6301 for provision of CoP services, managed by CCS.
Modulr’s payment network connectivity includes CHAPS, Open Banking, SEPA, SWIFT and account issuance in a range of currencies.
CoP is a fraud prevention tool that works by validating bank account details in real time with receiving banks and payment institutions.
All regulated payment service providers were mandated to implement CoP by 31 October this year.
As of September 2024, CoP had processed more than 2.5 billion checks since its launch in 2020, and currently conducts in excess of 2.1 million checks daily.
