Modulr joins FCA scale-up unit for solo-regulated firms

Modulr has been selected for the first cohort of the Financial Conduct Authority's Scale-up Unit for solo-regulated firms, a group created to support established regulated companies as they expand.

Its inclusion gives the UK payments company a direct contact point within the regulator, as well as practical support during its next stage of growth. The unit also allows participating firms to contribute to policy discussions affecting the UK financial services sector.

Modulr joins the cohort after a decade as a regulated payments provider in the UK. It now processes more than 200 million transactions a year on an annualised basis and handles more than £180 billion in payment value for more than 6,000 businesses.

The selection places Modulr within an FCA initiative aimed at companies that are already established but still growing quickly. For firms in payments and other regulated areas of finance, closer contact with the watchdog can help address operational and policy issues that emerge as businesses become larger and more complex.

Modulr's customer base ranges from small and medium-sized businesses to multinational companies. Its services include payroll, supplier payments, spend management, foreign exchange and payment collection.

The company has also been expanding beyond its home market, including a launch in the United States. It said it reached profitability in 2025.

Regulatory access

The FCA's Scale-up Unit for solo-regulated firms is intended for businesses regulated directly by the authority rather than by multiple prudential bodies. By creating a first cohort, the regulator is signalling a more structured approach to supporting firms that have moved beyond the start-up stage but remain in active expansion.

That matters in a sector where policymakers are trying to balance oversight with growth. Payments groups, digital finance companies and other regulated businesses have argued that timely regulatory engagement is important if the UK is to remain an attractive place to build financial services companies.

Myles Stephenson outlined Modulr's view in comments issued alongside the announcement.

"The UK has established itself as a leading financial services hub, allowing fast-paced businesses like Modulr to scale. To continue innovating and investing in the future of the UK economy, strong collaboration between industry and the FCA is critical. I am excited for Modulr to work with the FCA and other solo-regulated firms through the Scale-up Unit over the coming months, and to help shape the UK's already exciting financial services landscape," said Myles Stephenson, Founder and CEO of Modulr.

Growth profile

Modulr has built its business around payment automation for companies seeking to manage money flows through a single platform. Its systems are used to automate payments into and out of businesses, reducing manual processes across finance operations.

Its scale helps explain its inclusion in the FCA programme. Handling more than 200 million transactions and more than £180 billion in annualised payment value places the company among the larger UK-based financial technology businesses operating in payments infrastructure.

Modulr is authorised and regulated in the UK as an electronic money institution by the FCA. It also holds authorisation in Europe through De Nederlandsche Bank, giving it a regulatory footing in both the UK and continental Europe as it grows.

For the wider industry, the launch of a scale-up unit points to a shift in how the regulator engages with companies that are no longer early-stage entrants but have not yet reached the size and structure of the largest incumbents. Those firms often face a mix of compliance, operational and policy questions as transaction volumes rise and international expansion gathers pace.

The unit also gives firms a route to contribute to the UK financial ecosystem and help inform future policy. For a payments provider that has already reached profitability and is increasing its international footprint, regulatory dialogue is becoming as important to its next phase as commercial expansion.