How automating settlement can accelerate Merchant Services payments
Financial services is increasingly embracing automation, with manual processes being phased out across the board by organisations looking to reduce friction and cut costs. Modulr helps businesses in the highly competitive market of merchant services (MS) automate payment settlement to optimise their work and gain the edge over their peers.
Automation has been at the forefront of payment processing for years, significantly reducing the labour involved in settlement operations. As technology continues to develop apace, the potential for greater operational efficiencies via faster, more secure payments is also growing.
But other benefits are emerging as well, with payments businesses like Modulr able to share data-backed insights instantly in a way that legacy payment providers could not.
Today, automating settlement also promises MS businesses new revenue benefits alongside the already significant gains that come when executives focus attention on an organisation’s innovation and growth, rather than executing routine processes.
In this blog, we’ll be looking at:
- The benefit of automation in Merchant Services
- How Modulr automates payment solutions
- Tailoring solutions for complex payment needs
- Measuring the impact of settlement automation
- Modulr’s product capabilities
The benefits of automation in Merchant Services
Automating settlement not only saves merchant services businesses time and labour but also reduces risk. Traditionally, manual handling of settlements introduces opportunities for human error, such as data entry mistakes or reconciliation delays from spreadsheets laboriously cross-referenced or uploaded line-by-line.
With automation, the risk of failed or delayed payments decreases, ensuring smooth and timely transfers. Moreover, automated payment processes give businesses better control over transaction success rates, further improving operational efficiency.
Real-time visibility of fund flows also becomes achievable with automated systems. Instead of waiting hours or days for settlements to be confirmed, merchants receive instant updates, enabling quicker decision-making, correction or amendment, and reducing the risk of cash flow issues as a result.
Modulr’s robust platform also represents a step-change from manual payment processing, with its consistently reliable levels of uptime supporting its always-on availability.
Modulr’s settlement solutions use an array of open banking tools, the most powerful of which are APIs. Alongside the use of webhooks to provide real-time notifications of events within a payment process, Modulr supports communication between different systems to update on transaction status, connect with enterprise or accounting software and track changes in a payment lifecycle for audit or other teams to review.
As businesses without automation scale, maintaining clarity and control over fund flows becomes increasingly challenging, making solutions like Modulr’s indispensable for high-growth companies.
How Modulr automates payment solutions
Modulr stands out as one of the few non-banks with direct access to the Faster Payments Service (FPS) in the UK, while it can also access the Single Euro Payments Area (SEPA) Instant Credit Transfer in Europe.
What sets Modulr apart from other payments businesses is its ability to offer both standardised automation solutions and highly customised integrations, accessed via portal or through API integrations.
Modulr’s automation capabilities are tailored for complex requirements, supporting businesses with unique fund flow needs and operations across different markets. This extends to generating unlimited segregated accounts and local IBANs, allowing businesses to manage their finances more effectively across multiple regions.
Tailoring solutions for complex payment needs
For merchants with sophisticated operations, these multiple segregated accounts can be managed through automated payment rules.
With fully automated systems, merchants no longer have to worry about operational bottlenecks or the risks associated with manual processes. Instead, they can rely on clear, real-time visibility into their fund flows, empowering them to operate with confidence.
Modulr’s comprehensive automation platform offers merchants full transparency into every aspect of their payment operations. With real-time reporting and data on payments and settlements, businesses gain unprecedented clarity into their cash flow. This visibility not only supports better decision-making but also reduces the likelihood of payment disputes or reconciliation issues.
By providing a robust, flexible, and scalable payments platform, businesses can confidently pursue new growth opportunities, knowing their payment infrastructure can handle any level of complexity. Whether it’s automating pay-outs or managing incoming payments, Modulr’s platform ensures that every transaction is processed efficiently and without delay.
Measuring the impact of settlement automation
Modulr’s automated systems can help MS businesses achieve lower latency, faster payment processing, and reduced costs.
Eliminating manual tasks significantly enhances accuracy and speed while reducing the potential for error. As a result, businesses can not only improve their internal efficiencies but also offer a better customer experience. Instant settlements mean quicker onboarding for customers and real-time access to funds, which enhances satisfaction and builds loyalty.
One of the most fundamental transformative options within Modulr’s platform is the support of straight-through payments. This process enables merchant customers seeking speed to make push payments without unnecessary manual intervention, such as data entry, verification, or reconciliation, account-to-account. By removing these steps, businesses can mitigate risk, improve cash flow visibility, and focus on strategic growth rather than routine payment processes.
Modulr’s product capabilities
Modulr offers a range of innovative products and services designed to streamline merchant payment settlements. Some key features include:
- Instant Payments (FPS & SEPA Instant): Modulr’s direct integration with instant payment systems allows businesses to process transactions in real-time.
- Automated Accounts: With segregated accounts and local IBANs, businesses can manage multiple fundflows across different markets without manual intervention.
- Platform Integration & Webhooks: Modulr’s API-driven platform allows for seamless integration, enabling real-time notifications and easy access to payment data.
- Payment Initiation Services (PIS): Secure, automated fundflow management helps businesses initiate and receive payments efficiently.
By leveraging these capabilities, MS businesses can fully automate their settlement processes, ensuring quicker reconciliation, better fundflow management, and reduced operational risks.
Ready to explore how Modulr can help your business? Learn more about Modulr’s merchant payment services and start your journey to automation today.
