Payment institution authorisation in the United Kingdom
The FCA authorises payment institutions under the Payment Services Regulations 2017. Capital depends on the services, and smaller firms can register as a small payment institution instead. A UK PI serves the UK only. Since 7 May 2026 authorised PIs must meet the CASS 15 safeguarding rules.
Facts under review · last checked 2026-10-08 · confirm figures with the regulator before relying on them
Regulator · Financial Conduct Authority (FCA) ↗
Key facts
- Minimum initial capital
- €20,000 (money remittance), €50,000 (payment initiation) or €125,000 (services in Schedule 1 para 1(a) to (e)); none for account information onlyPSRs-2017-Sch-3-Part-1as of 2026-10-08Source ↗
- FCA application fee
- £5,640 (category 5) for services (a) to (e); £2,820 (category 4) for services (f) to (h); £1,130 for a small payment institutionas of 2026-10-08Source ↗
- Statutory decision period
- 3 months from a complete application; any application must be decided within 12 months of receiptPSRs-2017-reg-9as of 2026-10-08Source ↗
- Safeguarding rules (CASS 15)
- In force from 7 May 2026 for authorised PIs and small PIs that safeguard voluntarily, introduced by policy statement PS25/12as of 2026-10-08Source ↗
Realistic timeline
Who does what, and how long each phase usually takes once work starts. The regulator’s share is outside anyone’s control.
- HartsizScoping and gap analysis2–4 weeks
- YouHires, capital and application on FCA Connect6–14 weeksHartsiz drafts the pack; the client supplies people, capital and decisions
- RegulatorFCA assessment and decision16–52 weeksOutside our control; the 3-month statutory period starts only once the FCA treats the file as complete
Estimated end to end: 6–16 months. Not a guarantee.
What the regulator expects to see
- UK company with head office in the UK and senior management able to run it day to day
- Directors and senior managers assessed by the FCA for fitness and propriety
- MLRO and AML framework under the Money Laundering Regulations 2017
- Safeguarding, reconciliation and resolution-pack arrangements under CASS 15
- Operational resilience and ICT controls proportionate to the business
Questions we get
Should we become a small payment institution first?
It can make sense for low volumes, with a lower application fee. A small PI cannot provide every service and faces volume limits, so check the business plan against them.
Does CASS 15 apply to us?
It applies to authorised payment institutions and to small payment institutions that choose to safeguard. It took effect on 7 May 2026.
Changes affecting this route
- United Kingdom · Fintech & Crypto · high impact
UK safeguarding Supplementary Regime (CASS 15) in force
The FCA's strengthened safeguarding rules for payment and e-money institutions apply from 7 May 2026. Firms must meet new reconciliation, record-keeping, audit and regulatory reporting requirements for client funds. Applicants should build these controls into their policies and systems before applying.
Source ↗