Authorised Payment Institution (API) License
Whether you are building a payment gateway, launching a money remittance service, or creating an embedded finance platform, obtaining an Authorised Payment Institution (API) license gives your business the regulatory foundation to operate legally, securely, and at scale.
Why Is an API License Important
For fintechs planning to offer payment services — without the need to issue e-money — the API license is the ideal choice.
Legal Authority
Without an API license, you cannot legally process or transmit payments on behalf of clients in the UK or EU.
Market Access
Licensed institutions can access SEPA, Faster Payments, and Open Banking rails directly or via partner integrations.
Trust & Reputation
Being regulated by the FCA (UK) or an EU competent authority increases confidence among banks, investors, and clients.
Revenue Opportunities
Monetize through transaction fees, FX spreads, remittance charges, and B2B payment services.
Scalability
API authorization allows you to operate and expand across multiple European jurisdictions under a single compliant structure.
Regulatory Protection
An API license keeps your business within a clear regulatory framework, minimizing legal risks and ensuring stable operations.
What Is an Authorised Payment Institution License?
An Authorised Payment Institution (API) license is a regulatory authorization that allows companies to provide services such as domestic and cross-border money transfers, merchant acquiring, payment processing, direct debits, standing orders, and payment initiation or account information services (AIS) under Open Banking. Unlike an EMI license, the API authorization does not permit issuing e-money or holding customer funds, but it offers a faster and more cost-efficient route for businesses focused on payment infrastructure, gateways, and remittance operations.
With FinHost’s expertise, you can navigate the regulatory process smoothly, acquire a ready-made license if needed, and integrate the technology and compliance tools required to succeed in the fast-moving fintech ecosystem.
How to Obtain an API License
Timeline: Typically 4–6 months, depending on the jurisdiction and application quality.
1. Choose Jurisdiction
Select a country based on licensing costs, processing timelines, and local ecosystem (e.g., Lithuania, Ireland, UK).
2. Incorporate Entity
Register a local company and establish a physical or virtual office.
3. Prepare Documentation
Business plan, AML/KYC framework, governance policies, and IT security documentation.
4. Set Up Governance
Appoint key personnel: directors, compliance officer, MLRO, and internal auditor.
5. Submit Application
File with the FCA (UK) or relevant EU national authority.
6. Regulatory Review
The authority examines documents, conducts background checks, and requests clarifications.
7. License Granted
Upon approval, you can operate as an Authorised Payment Institution and offer regulated services.
How FinHost Supports Your API Journey
FinHost provides end-to-end solutions for companies obtaining or acquiring an API license:
License Application & Documentation
Preparation of full application packages — business plan, risk framework, compliance manuals, and financial models.
Compliance-as-a-Service (CaaS)
Ongoing AML/KYC monitoring, transaction screening, and reporting to ensure continuous compliance after licensing.
Core Payments & White-Label Platform
Deploy a ready-made payments infrastructure (web, mobile, and back office) with integrated KYC, FX, and transaction management modules.
API Integrations & Banking Access
Pre-built connections to SEPA, Faster Payments, SWIFT, and key banking partners for seamless go-live.
Risk & Security Frameworks
Implementation of governance and IT security systems aligned with ISO 27001 and financial regulations.
UK vs EU Frameworks
United Kingdom (FCA)
- Regulated under Payment Services Regulations 2017
- Requires local incorporation, directors, and safeguarding setup
- Supervised by the Financial Conduct Authority (FCA)
European Union (PSD2 / PSD3)
- Regulated under Payment Services Directive (PSD2) — with PSD3 coming into force in 2025
- Authorised by the national regulator (e.g., Bank of Lithuania, BaFin, CNMV)
- Provides passporting rights across all EU/EEA countries
Alternatives – Ready-Made EMI Licenses
If your goal is to launch quickly, FinHost offers Ready-Made Licenses for Sale. These are existing licensed entities that can be acquired and operated immediately, reducing time-to-market from months to weeks. This is an attractive option for companies that: need faster launch times; want to skip long regulatory queues; have investors requiring immediate go-to-market.
Success Stories
Ready to Scale with Confidence?
Frequently Asked Questions
How much capital is required?
Typically between €20,000–€125,000, depending on the type of payment services provided.
Can an API license be passported across Europe?
Yes — EU-authorised APIs enjoy passporting rights across all EU/EEA member states.
What is the difference between an API and an EMI license?
An API license allows payment processing only. An EMI license includes all API permissions plus e-money issuance and wallet management.
What other solutions does Finhost offer beyond compliance?
In addition to compliance services, Finhost offers SaaS hybrid infrastructure, source code licensing, dedicated development teams, BaaS and third-party API integrations, as well as ready-to-use licenses for sale — all tailored to accelerate your fintech or crypto banking launch.