UK Authorised Payment Institution Licence

To become an authorised payment institution (API) and offer payment services in the UK market, you need to apply to the FCA for an API licence.

As set out in the Payment Services Regulations 2017, an API licence enables you to offer services such as remittance, payment processing, and operating payment accounts.

If you’re offering money transfer or currency exchange services, you also need to register with HMRC for a Money Service Business Licence.

We can manage the API licence application process for you from start to finish, so you can become an authorised payment institution quickly and easily, freeing up your time to focus on running your business.

What do I need to get an API licence?

As set out on the FCA’s authorisations page:

• You are a body corporate (eg a limited company or partnership)
• You must carry on – or will carry on – some of your payment services business in the UK
• You have robust governance arrangements and internal procedures and control mechanisms
• You have a business plan
• You have taken adequate measures to safeguard payment service user funds
• If you provide payment initiation services (PIS) and account information services (AIS) you must hold adequate professional indemnity insurance
• Directors and managers must be of good repute with appropriate skills to provide payment services
• Managers must not have been convicted of money laundering, terrorist financing or other financial crimes
• Your head office and registered office must be in the UK
• Your MLRO must be based in the UK
• You must comply with the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (amended 2019)
• Anyone having a qualifying holding must be fit and proper, and
• If the applicant has close links to another person, the links mustn’t be likely to prevent the FCA’s effective supervision of the business (if the links are outside the UK, foreign laws mustn’t prevent the FCA’s effective supervision of the business)

How long does it take to get an API licence?

An authorised payment institution licence normally takes around 4-6 weeks to prepare. The FCA’s processing time is highly variable and could be from 3-12 months.

What if I want to become authorised sooner?

If you cannot wait until your licence is issued, you have a couple of options:

• You can buy an existing firm – we do a lot of work with M&A transactions – contact us for more detail
• You can become an agent of an authorised firm

Will I be accepted for an API licence?

We’re proud to have a 99% success rate with applications we’ve made on behalf of our clients. We don’t want to waste your time or our own so, before we take on your case, we’ll screen your company, directors and shareholders to make sure you meet the FCA’s requirements. Doing these initial checks mean we can be confident you’ll be granted your API licence first time.

How much does it cost?

We charge a flat fee for an API licence application, which includes unlimited follow-up with the FCA until your licence is granted.