SPI Licence vs API Licence: Which FCA Authorisation Do You Need?

What Is the Difference Between an SPI Licence and an API Licence?

SPI registration and API authorisation are distinct FCA routes. SPI eligibility includes an average monthly transaction measure over 12 months and other conditions; it is not simply a €3 million monthly allowance. Your proposed services determine the appropriate route, not the Remitz plan you buy.

Choosing the right authorisation type affects your capital requirements, regulatory obligations, application timeline, and the remittance software features you need from day one. This guide breaks down both options to help you decide.

Small Payment Institution (SPI) — Overview

An SPI registration is the entry-level FCA authorisation for money transfer operators. It is designed for businesses processing lower volumes while they build their customer base and operational capabilities.

SPI Key Requirements

• Transaction Limit — Up to €3 million in payment transactions per month (average over 12 months)
• Minimum Capital — none for a small PI. The FCA’s capital chapter is “not relevant to small PIs” (Our Approach, 9.1).
• Safeguarding — Not required by regulation, though recommended as best practice
• Application Process — Registration (simpler than full authorisation). Typically 3–6 months.
• Passporting — Cannot passport services to other EEA countries
• FCA fee — check the current FCA fee schedule for your application category.

Who Should Apply for an SPI?

SPI registration is ideal for startups, new MTOs, and businesses testing the UK remittance market. If you are launching your first money transfer business and expect to process under €3 million monthly in your first 1–2 years, SPI is the right starting point. Remitz offers a dedicated SPI licence applicant plan at £79/month to help you prepare.

Authorised Payment Institution (API) — Overview

API authorisation has service-specific capital and ongoing requirements. It does not grant a UK firm an EEA passport; assess destination-market permissions separately.

API Key Requirements

• Transaction Limit — No upper limit on transaction volumes
• Capital — initial and ongoing requirements depend on the authorised services; obtain a current calculation.
• Safeguarding — Mandatory. Customer funds must be held in segregated accounts at an authorised credit institution or covered by insurance/guarantee.
• Application Process — Full authorisation with detailed business plan, compliance manual, and IT systems assessment. Typically 6–12 months.
• EEA activity — UK authorisation does not provide an EEA passport; obtain advice on local permissions.
• FCA fee — check the current FCA fee schedule for your application category.

Who Should Apply for an API?

API authorisation is for established MTOs processing above €3 million monthly, businesses planning rapid growth, and operators wanting to serve customers across multiple European markets. If you already have a proven business model and sufficient capital, applying directly for API status may save time versus upgrading from SPI later.

SPI vs API: Side-by-Side Comparison

Can You Upgrade from SPI to API?

Yes. Many UK money transfer operators start with SPI registration and upgrade to full API authorisation as their business grows beyond the €3 million monthly threshold. The FCA expects operators to monitor their transaction volumes and apply for API authorisation before consistently exceeding the SPI limit.

Moving from the non-operational applicant environment to live software requires an agreed setup scope, provider credentials, configuration and testing. It is separate from obtaining registration or authorisation; no universal zero-downtime upgrade is promised.

AML/KYC Requirements: SPI vs API

Both SPIs and APIs must comply with the UK Money Laundering Regulations 2017. The AML/KYC requirements are the same regardless of authorisation type:

• Customer Due Diligence (CDD) and Enhanced Due Diligence (EDD)
• Ongoing transaction monitoring
• Sanctions screening against HM Treasury and global watchlists
• Suspicious Activity Reporting (SARs) to the National Crime Agency
• Record keeping for minimum 5 years
• Annual AML/KYC training for all staff

Remitz supports AML/KYC compliance workflows. Confirm the actual provider checks, monitoring, review and reporting scope. Software does not transfer your compliance responsibilities.

What Software Do You Need for Each Licence Type?

Both SPI and API operators need money transfer software that supports FCA compliance, transaction processing, and customer management. The difference is scale:

• SPI operators — Need a platform that handles compliance, basic corridors, and customer onboarding. The Remitz SPI plan (£79/month) provides a sandbox environment for pre-licence preparation, upgrading to the Starter plan (£299/month) when authorised.
• API operators — choose modules by operational requirements, not authorisation label. Agent management is scoped with Enterprise; Growth is £799/month plus £2,000 setup.

How to Decide: SPI or API?

Ask yourself these questions:

1. Projected volume and services — assess all SPI eligibility conditions rather than deciding from volume alone.
2. Do you have the initial capital for the services you want to provide? — An authorised PI holds €20,000 for money remittance, €50,000 for payment initiation, €125,000 for the services in Schedule 1 Part 1(1)(a)–(e). A small PI has no initial capital requirement.
3. European markets — determine permissions and provider arrangements separately for each proposed service.
4. How quickly do you want to launch? — SPI registration takes 3–6 months vs 6–12 months for API.
5. Is this your first money transfer business? — Most first-time operators start with SPI and upgrade when ready.

Further reading: for the full SPI application process see our SPI licence 2026 guide. If you are considering buying a pre-authorised firm instead, read Ready-Made SPI Licence UK.