Payment Services API-SPI
Authorisation for UK Payment Services
Entering the UK’s dynamic payment services market offers immense opportunity, but it requires authorisation from the Financial Conduct Authority (FCA). Whether you are a remittance operator, a credit card processor, or a foreign exchange business, securing the correct licence is the critical first step. At Apex Compliance Advisory, we provide expert, end-to-end support to navigate the regulatory landscape, ensuring your firm is correctly authorised to serve your customers and grow your business.
What is an API licence?
An Authorised Payment Institution (API) is a firm that has been granted permission by the FCA to provide specified payment services and is officially listed on the FCA’s Financial Services Register. This status is essential for a wide range of businesses that form the backbone of our payment ecosystem, including:
- Credit Card and Payment Processors
- Operators of Payment Accounts
- Money Remittance and Transfer Operators
- Foreign Exchange (Forex) Businesses
- Payment Initiation Service Providers (PISPs)
To legally offer these services in the UK, your firm must successfully apply to the FCA for an API licence, a process governed by the Payment Services Regulations 2017 (PSRs 2017). Furthermore, businesses involved in money transfer or currency exchange must also complete a separate registration with HMRC as a Money Service Business (MSB).
The Small Payment Institution (SPI) Route
For firms operating on a smaller scale, the path to becoming a Small Payment Institution (SPI) offers a more streamlined alternative. This route is specifically designed for businesses whose payment services activity falls below a certain threshold. Your business may be eligible to register as an SPI if your average monthly turnover in payment transactions does not exceed €3 million.
The application process for an SPI is less stringent than for a full API licence, making it a popular choice for new ventures and businesses focused on services like money remittance. However, it’s important to note that this lighter regulatory burden comes with certain limitations on the scope of activities an SPI can undertake. Our experts can help you determine if the SPI route is the most appropriate and strategic choice for your business model.
For firms where consumer credit is a core component of your business such as lenders, debt collectors, or peer-to-peer lending platforms; securing a Full Permission Consumer Credit license is a non-negotiable requirement. This authorisation path is significantly more detailed than its limited counterpart, involving rigorous scrutiny of your business model, financial projections, and compliance frameworks.
We specialise in managing this intricate journey, guiding you through the creation of a comprehensive regulatory business plan and ensuring you can confidently demonstrate adherence to all of the FCA’s stringent Threshold Conditions, transforming a complex obligation into a clear roadmap for success.
Your Partner in Payment Services Compliance
Whether the API or SPI route is right for you, Apex Compliance Advisory is here to provide clarity and expert guidance. We manage the entire application process, from strategic planning to final submission, ensuring your firm is perfectly positioned for FCA approval.