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What is a small payment institution? The UK's smaller payments licence

By SendPay Business · · 2 min read

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A small payment institution, or SPI, is a UK payments business registered with the FCA under the Payment Services Regulations 2017. It's a lighter route than full authorisation, meant for firms whose payment volumes stay small.

The volume limit

To stay a small payment institution, a firm's average monthly payment transactions must not exceed €3 million over the previous 12 months. Above that, it needs to become an authorised payment institution.

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SPI vs authorised payment institution

  • An SPI is registered, with lighter capital and reporting rules.
  • An authorised payment institution has no volume cap but stricter requirements.
  • An SPI can't passport its services outside the UK.

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Other routes to market

Many new platforms don't hold a licence at first. They work with a licensed partner that provides the regulated services, and apply for their own permissions later if it makes sense.

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Where SendPay fits

SendPay platforms are powered by licensed partners. SendPay tells you in writing which licences apply to your platform before you launch.

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How it works

Your own money app
  1. Name it and pick your colours
  2. Choose what it does
  3. Launch when you are ready

Why sign up

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It's all about creating your own financial platform with ease. Start with a free account today.

  • A free business accountOpen it in about a minute with your business name, email, password and mobile. No card and no documents to start.
  • Get paid from day oneTake card payments, and share your own payment link and invoices so customers pay in a click.
  • A free business websiteFree to build, free to publish and free to keep, with unlimited visits.
  • Your own financial platformDesign and preview your whole platform free, then launch when you are ready.
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SendPay Business is a technology company, not a bank. Accounts, cards and payments are powered by licensed partners.

Questions people ask

How close am I to the SPI limit?

Check your 12-month average payment volume against the €3 million small payment institution limit.

Small payment institution limit calculator →
E-money institution or bank?

How the two differ.

E-money institution vs bank →
What registrations do I need?

The FCA and HMRC registrations explained.

FCA and HMRC guide →
What is safeguarding?

How payment firms protect customer funds.

What is safeguarding? →

Read next

Spotted a mistake or something out of date? and we'll fix it. How our guides are made

This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. Other companies named in this guide are reference points only and are not affiliated with SendPay Business.