Morses Club moves e-money services from Wirecard to Modulr
Morses Club
0.21p
16:50 10/02/23
Non-standard financial services provider Morses Club announced on Tuesday that its digital division, Shelby Finance, has entered into a new supplier relationship with digital payments provider Modulr Finance.
FTSE AIM All-Share
755.46
16:39 26/04/24
The AIM-traded firm said the relationship was related to Shelby’s ‘U Account’ business, which provides e-money accounts, and replaced its existing relationship with Wirecard UK.
Modulr's platform would provide U Account customers with an “enhanced” payments service, along with a “superior” customer service experience for their e-money and payment needs, the board said.
It added that Modulr's direct participation in the Bacs and Faster Payments schemes would provide U Account customers with a reliable card processing solution, and allow them to make near-instant payments.
The digital payments solution was not typically available outside of mainstream banking providers, Morses Club claimed.
It said the new contract with Modulr would also provide the opportunity for further development of mobile payment and international payment capabilities.
Additionally, the group's development of a new biometric onboarding and servicing capability would mean U Account customers would be able to access and operate their accounts more easily and securely than previously.
The new service was expected to be available to U Account customers from the autumn.
Morses Club said it also planned to unveil new branding for U Account, along with the launch of an improved mobile application before the end of the year, which would enable customers to take advantage of the new features.
The superior performance of Modulr's platform, along with the ability to process a larger number of new customers, should allow the company to increase its scale in e-money accounts, and leverage the wider suite of Modulr products including payment initiation, Visa cards, direct debits and direct access to Faster Payments and Bacs schemes, the board explained.
It said it was aiming to offer complementary services to those customers, including revolving and fixed-lending products, as part of its wider strategy to offer an enhanced and integrated digital offering to all its customers.
“This is another step forward in our strategy to invest in the group's digital infrastructure, allowing us to cater for our customers' ever-changing needs and provide a high-quality product offering,” said chief executive officer Paul Smith.
“Not only will Modulr be a more reliable provider for our U Account customers, but the superior technological capabilities of the platform will allow them to access a service offering not typically available outside of mainstream banking providers.
“On top of this, the launch of our improved mobile application before the end of the year will enable our customers to increasingly use our services in their everyday lives, deepening our relationship with and understanding of each customer.”
Smith said the new relationship marked a “significant progression” towards achieving scale within the e-money accounts market, providing a bigger pool of customers who could take advantage of the company’s other digital products.
“The launch of revolving and fixed-lending products to our account holders will also be a major step forwards in achieving profitability in the Group's digital division.”
At 1635 BST, shares in Morses Club were down 4.89% at 66.2p.