PSP License in the United Kingdom
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A Payment Service Provider (PSP) License in the UK allows companies to process transactions, facilitate money transfers, and offer payment services under the Payment Services Regulations 2017. Regulated by the Financial Conduct Authority (FCA).
What does a PSP licence in the UK provide?
What are the Legal Requirements in PSP License in the UK?
UK-Based Office & Company Registration
A PSP must have a registered office in the UK and conduct part of its payment operations within the country.
Business Plan & Financial Forecasts
Applicants must submit a detailed business model, including payment services offered, revenue projections for 3-5 years, and operational strategies.
Capital Requirements
- €20,000–€125,000, depending on the type of services and license category.
- No capital requirements for SPI licenses, making them accessible to startups.
Client Fund Protection Mechanisms
Businesses must prove they have secure fund segregation policies to protect customer deposits (applicable to API license holders).
IT Infrastructure & Cybersecurity
A robust IT infrastructure must be in place to support payment transactions, ensure GDPR compliance, and protect against cyber threats.
Regulatory Compliance & Management Team
• Directors, shareholders, and key personnel must pass FCA’s fit and proper test.
• Strong AML (Anti-Money Laundering) and KYC (Know Your Customer) policies must be implemented to detect fraud and prevent financial crimes.
7 steps to get PSP license in the UK
Frequently Asked Questions
Still have questions?
How long does it take to obtain a PSP License in the UK?
The FCA approval process takes 3–12 months, depending on application completeness and regulatory checks.
What is the minimum capital requirement for a PSP License?
Capital requirements range from €20,000 to €125,000, depending on the license type. SPI licenses have no capital requirement.
Do I need a physical office in the UK?
Yes, the PSP must have a registered UK office and conduct part of its business from within the country.
What are the FCA application fees for a PSP License?
- £1,500–£5,000 for individual applicants, depending on services offered.
- £5,000 for an EMI license.
- £500 for small private institutions providing limited services.
Are PSP transactions VAT-exempt?
Yes, payment services under a PSP License are generally exempt from VAT in the UK.
Can PSP-licensed companies operate in the EU?
Yes, through partnerships or passporting agreements, PSPs can operate in certain EEA countries despite Brexit.
Our Services Include
Company Registration & Licensing Support
We assist in company formation, PSP License application submission, and FCA compliance.
Business Plan & Financial Documentation
Our team prepares business plans, financial projections, and operational strategies tailored to FCA requirements.
Compliance & Risk Management
We develop AML/KYC frameworks, transaction monitoring procedures, and cybersecurity policies for regulatory approval.
Capital & Financial Planning
We provide guidance on capital structuring, fund segregation mechanisms, and financial risk management.
Ongoing Regulatory Compliance & Audit Support
We offer continuous FCA reporting assistance, risk management advisory, and post-licensing support.
We Are Always Available
Our team ensures your business setup is smooth, efficient, and compliant with local laws. Contact us today to discuss your project.
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