What is a small payment institution? The UK's smaller payments licence
By SendPay Business · · 2 min read
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.
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.
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.
Where SendPay fits
SendPay platforms are powered by licensed partners. SendPay tells you in writing which licences apply to your platform before you pay.
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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 →Read next
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. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.