Payment Institution Licence — United Kingdom
UK market access — no EEA passporting post-Brexit. FCA regulated. Capital from £20k–£125k. Typical timeline 6–12 months.
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Why United Kingdom for Your Payment Institution Licence?
The UK remains one of the world's most respected financial services jurisdictions. An FCA-authorised PI benefits from the credibility associated with UK regulation, access to the UK's deep banking and payments infrastructure, and proximity to a sophisticated fintech ecosystem. However, since Brexit, UK-authorised firms no longer benefit from EEA passporting and must obtain separate authorisation to operate within the EU.
The UK offers two types of payment institution authorisation: the Authorised Payment Institution (API) for firms providing payment services without transaction limits, and the Small Payment Institution (SPI) for firms with average monthly transactions below €3 million. The FCA is the sole regulator responsible for assessing and granting PI authorisation in the UK.
Licence Requirements
Detailed Requirements
Authorised PIs must hold minimum initial capital ranging from £20,000 to £125,000 depending on the payment services offered. Directors and beneficial owners must pass fit and proper assessments. A comprehensive business plan, programme of operations, compliance monitoring programme, and financial crime framework must be submitted. Safeguarding arrangements for customer funds are mandatory from day one of authorisation.
Application Process
Regulatory Strategy
We assess your business model and regulatory position to develop a clear licensing strategy.
Business Plan
We prepare a comprehensive business plan meeting the regulator's expectations.
Programme of Operations
Detailed programme of operations covering governance, compliance, and operational arrangements.
Compliance Framework
Full AML/CFT framework, compliance monitoring programme, and risk management policies.
Application Submission
We compile and submit the complete application package to the regulator.
Regulator Review
We manage all regulator communications and information requests during the review period.
Authorisation
Upon approval, we support your transition to live operations.
Process Detail
The FCA application process typically takes 6 to 12 months from submission to determination. The process begins with an initial regulatory strategy assessment, followed by drafting the application pack including the business plan, programme of operations, compliance and AML frameworks, financial projections, and governance documentation. Once submitted, the FCA conducts a detailed review and may raise information requests. The FCA scrutinises the viability of the business model, the adequacy of systems and controls, and the fitness and propriety of key individuals.
United Kingdom vs Lithuania
| Criteria | United Kingdom | Lithuania |
|---|---|---|
| Capital | £20k–£125k | €20k–€125k |
| Timeline | 6–12 months | 3–6 months |
| Regulator | FCA | Bank of Lithuania |
| Key Feature | UK market access — no EEA passporting post-Brexit | EU-wide passporting across all EEA member states, SEPA access |
Frequently Asked Questions
The capital requirement for a payment institution licence in United Kingdom is £20k–£125k. Authorised PIs must hold minimum initial capital ranging from £20,000 to £125,000 depending on the payment services offered. Directors and beneficial owners must pass fit and proper assessments. A comprehensive business plan, programme of operations, compliance monitoring programme, and financial crime framework must be submitted. Safeguarding arrangements for customer funds are mandatory from day one of authorisation.
The typical timeline for a payment institution licence in United Kingdom is 6–12 months. The FCA application process typically takes 6 to 12 months from submission to determination. The process begins with an initial regulatory strategy assessment, followed by drafting the application pack including the business plan, programme of operations, compliance and AML frameworks, financial projections, and governance documentation. Once submitted, the FCA conducts a detailed review and may raise information requests. The FCA scrutinises the viability of the business model, the adequacy of systems and controls, and the fitness and propriety of key individuals.
The UK remains one of the world's most respected financial services jurisdictions. An FCA-authorised PI benefits from the credibility associated with UK regulation, access to the UK's deep banking and payments infrastructure, and proximity to a sophisticated fintech ecosystem. However, since Brexit, UK-authorised firms no longer benefit from EEA passporting and must obtain separate authorisation to operate within the EU.
After receiving your payment institution licence in United Kingdom, you must maintain ongoing compliance with regulatory requirements including safeguarding of customer funds, regular regulatory reporting, maintaining adequate capital, updating AML and compliance frameworks, and cooperating with supervisory reviews and inspections.
Most jurisdictions require local substance for a payment institution licence. In United Kingdom, you will typically need a registered office, at least one locally resident director, and potentially additional operational staff. We can advise on the exact requirements and help you establish the minimum viable local presence.
A payment institution licence in United Kingdom provides access to the domestic market. UK market access — no EEA passporting post-Brexit. Separate authorisation may be required for other jurisdictions.