UK Authorised Payment Institution (API) License in 2026
A 2026 deep dive into the UK Authorised Payment Institution licence: FCA authorisation under PSRs 2017, GBP 20k-GBP 125k capital, PISP/AISP, CASS 15 safeguarding from 7 May 2026, statutory 4-month target and post-Brexit realities.
UK Authorised Payment Institution in one page
A UK Authorised Payment Institution (API) is the UK equivalent of an EU authorised PI. The legal framework is the Payment Services Regulations 2017 (PSRs 2017), which transposed PSD2 into UK law and remain in force post-Brexit. The regulator is the FCA.
APIs can provide every PSD2 Annex I service: execution of payments, acquiring, remittance, issuance of payment instruments, PISP and AISP. They cannot issue e-money (that needs an EMI) and cannot take deposits or lend on own account (that needs a bank).
UK API is the most common UK fintech payment licence after the small PI. Typical users: acquirers, open-banking TPPs, remittance operators, corporate-payment platforms and fintech marketplaces.
Let's discuss your project and see how we can launch your UK API payment product together
Request demoCapital and scope
- Money remittance only. GBP 20,000 initial capital.
- Payment initiation (PISP). GBP 50,000 initial capital.
- Payment execution, acquiring, issuing of payment instruments. GBP 125,000 initial capital.
- AIS only. No initial capital, PII required. Covered in the AISP registration guide.
Ongoing own funds follow PSD2 Methods A, B, C or D as picked by the FCA.
CASS 15 safeguarding from 7 May 2026
The FCA's Policy Statement PS25/12 applies to UK APIs (except AIS-only and PIS-only providers), creating a new CASS 15 safeguarding regime in force on 7 May 2026. Obligations:
- Mandatory daily reconciliation with documented evidence.
- Monthly FCA safeguarding supervisory return.
- Annual safeguarding audit by a qualified statutory auditor under the new FRC CASS 15 auditing standard.
- CASS 10 Resolution Pack retrievable within 48 hours.
- Statutory trust over client funds, modelled on CASS 7.
Most UK APIs are already invested in compliance remediation projects in early 2026. See the UK EMI guide for detail on PS25/12.
Authorisation process and timeline
- Pre-application. Innovation Pathways and Regulatory Sandbox engagement for novel models.
- Connect submission. FCA Connect online portal.
- File contents. Business plan, programme of operations, governance, AML/CFT (MLRs 2017), CASS 15-ready safeguarding plan, ICT framework, outsourcing register, fit-and-proper SMCR files.
- Statutory clock. 3 months from complete file; 12 months maximum for incomplete.
- FCA 2026 target. 4 months for complete applications, 10 months for incomplete. Reduced from 6/12.
- Real timeline. 6 to 10 months end-to-end for an API.
- Application fee. Approximately GBP 5,000, scaled to scope.
Substance, SMCR and Consumer Duty
- SMCR. Senior managers certified individually under the SM&CR regime.
- UK substance. Real UK office, UK-resident senior manager, meaningful UK staff.
- Operational resilience (PS21/3). Important business services, impact tolerances, mapping and testing fully embedded by March 2025.
- Consumer Duty. Retail-facing APIs apply the four-outcomes framework (products, price, consumer understanding, consumer support) in force since 31 July 2023.
- APP fraud reimbursement. Mandatory reimbursement scheme in force since 7 October 2024 for Faster Payments and CHAPS. APIs that serve UK consumers must implement the scheme.
Ship a UK API product with Crassula
Crassula provides the UK API core: ledger, UK accounts, Faster Payments, Bacs, CHAPS and SEPA rails (where relevant), KYC and AML (MLRs 2017), CASS 15-ready safeguarding reconciliation, Consumer Duty MI, APP-fraud detection, and FCA-ready reporting. The same platform scales from API to EMI when business model evolves.
FAQ
A UK Authorised PI under the Payment Services Regulations 2017, authorised by the FCA to provide payment services including transfers, remittance, PISP and AISP. UK equivalent of an EU authorised PI.
GBP 20,000 (remittance), GBP 50,000 (PISP), or GBP 125,000 (acquiring, issuing, transfers). AIS only requires no initial capital but PII.
Statutory 3 months from complete file; 12 months maximum for incomplete. FCA 2026 target: 4 months complete, 10 months incomplete. Real-world 6 to 10 months end-to-end.
Yes. PS25/12 creates a CASS 15 safeguarding regime in force on 7 May 2026 that applies to all authorised APIs (except AIS-only and PIS-only). Daily reconciliation, monthly FCA returns, annual safeguarding audits and 48-hour resolution packs.
No. Issuing e-money and prepaid balances requires an EMI licence. An API can issue non-EMI cards and payment instruments that draw on an underlying account at another PSP.
Crassula provides the UK API core: ledger, UK accounts, Faster Payments/Bacs/CHAPS/SEPA rails, KYC/AML, CASS 15 safeguarding, Consumer Duty MI, APP-fraud detection and FCA-ready reporting.
