Bank Payments let you send money to a recipient's bank account. You can pay using their bank details, or send them a link. Your recipient opens the link, securely connects their bank, and chooses which account the money goes to.
💡 Why it matters
A Bank Payment gives your recipient a direct payment into their own bank account. That makes it a good fit when cash flexibility matters most to the person you are supporting.
🔒 Who processes the payments
Bank Payments are a regulated payment type, so Huggg works with two partners behind the scenes. Both are authorised by the FCA (the Financial Conduct Authority, the UK's financial regulator):
Token.io handles the payment instructions. Token is a regulated Payment Initiation Service Provider, a firm licensed to start payments on an account holder's instruction.
Modulr (Modulr FS Limited, FRN 900573) opens and holds the account that ring-fences your organisation's money. Modulr is an authorised Electronic Money Institution, a firm licensed to hold money as electronic money.
You deal with Huggg throughout. Neither Token nor Modulr will contact your organisation directly. You can check both companies on the FCA register at register.fca.org.uk.
🏦 How the dedicated account works
When Bank Payments are enabled for your organisation, Modulr opens a dedicated e-money account in your name. An e-money account is a regulated account that holds electronic money.
It is not a bank account you log in to or manage. You see it in the Huggg platform as your Payments wallet.
Regulations say the money for your Bank Payments must stay your organisation's own money at every point in the chain. It is never pooled with other customers' money, and it never passes through anyone else's accounts.
Your money sits ring-fenced with an FCA-authorised institution until each payment reaches a recipient.
💷 How you top up
You top up your Payments wallet by bank transfer. Open the wallet in the Huggg platform and it shows you the account details to pay into.
Those account details are different from the ones for your main Huggg wallet. Check you are using the details shown in your Payments wallet.
Your finance team then pays those details, using your unique reference. It works the same way as paying an invoice.
Your Payments wallet keeps this money separate from your main Huggg wallet, which covers all other voucher types. Everything else works exactly as it does now inside the Huggg platform.
📋 How to get started
Before Bank Payments can be enabled, your organisation completes a Know Your Business (KYB) check. This is the standard identity check for opening any regulated account, and Huggg manages it on your behalf. The process takes up to 7 working days.
For the steps involved and answers to common questions about the application form, see Bank Payments onboarding (KYB) FAQs.
Still need help?
Email us at support@huggg.me and we'll do our best to assist.