Small Payment Institution (SPI) License
Whether you’re launching a payment app, remittance platform, or testing a new fintech model, obtaining a Small Payment Institution (SPI) license lets you start operating legally with reduced costs and a faster approval timeline.
Why Is an SPI License Important
For early-stage fintechs, startups, and payment providers, the SPI license offers the simplest way to enter the regulated market.
Fast Registration
SPI authorization is faster and easier to obtain than a full API or EMI license.
Lower Capital Requirements
Ideal for small or pilot operations with minimal upfront investment.
Regulatory Compliance
Even as a small institution, you can operate under a recognized legal framework.
Operational Flexibility
Suitable for testing business models, new markets, or payment products before scaling.
Smooth Transition
Once your transaction volume grows, upgrading from SPI to API or EMI authorization is straightforward.
Local Credibility
Holding an SPI license enhances your reputation with banks, investors, and partners.
What Is a Small Payment Institution License?
A Small Payment Institution (SPI) license authorizes a company to provide payment services — such as money transfers, merchant payments, and payment initiation — under simplified regulatory requirements. It’s designed for startups and smaller firms whose monthly transaction volume does not exceed €3 million (EU) or the equivalent £3 million (UK). While SPI license holders cannot passport their services across the EU/EEA and have certain capital limitations, it remains the fastest and most cost-efficient way to start offering regulated payment services within one jurisdiction.
With FinHost’s guidance, you can move through the licensing process efficiently, secure a ready-made regulated entity if preferred, and connect all the essential technology and compliance components to thrive in the dynamic fintech space.
How to Obtain an SPI License
Timeline: Typically 6–10 weeks, depending on jurisdiction and documentation readiness.
1. Choose Jurisdiction
Select the country that best suits your costs, language, and ecosystem.
2. Incorporate Entity
Register your company locally and open a business account.
3. Prepare Documentation
Business plan, AML/KYC policies, compliance and IT security frameworks.
4. Appoint Management
Assign responsible persons (directors, compliance officer, MLRO).
5. Submit Registration
File your SPI application with the FCA or EU regulator.
6. Regulatory Review
The authority verifies your documentation and background information.
7. Registration Granted
Once approved, your business can provide payment services legally.
How FinHost Helps
With FinHost, you can register, operate, or upgrade your SPI license with full compliance and technology support.
End-to-End Application Support
Preparation of all SPI registration documents — from the business plan to compliance policies
Compliance-as-a-Service (CaaS)
We provide continuous AML/KYC monitoring and transaction screening to help maintain compliance.
White-Label Payment Platform
Use our ready-to-launch payment infrastructure with built-in onboarding, reporting, and payment gateway modules.
Regulatory Migration Support
When ready, we help you upgrade from SPI to API or EMI license smoothly.
Partner Ecosystem
Access our trusted network of banks, card issuers, and compliance providers for seamless operations.
UK vs EU Frameworks
United Kingdom (FCA)
- Regulated under Payment Services Regulations 2017
- Registered with the Financial Conduct Authority (FCA)
- No passporting rights outside the UK
- Monthly transaction limit: £3 million
European Union (PSD2 / PSD3)
- Regulated under Payment Services Directive (PSD2) — to be updated by PSD3
- Authorized by national regulators (e.g., Bank of Lithuania, CNMV, BaFin)
- Transaction volume capped at €3 million per month
- No EU-wide passporting, but easy migration to full API license later
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
What are the main benefits of an SPI license?
Low entry cost, faster setup, and simplified regulation — ideal for startups and pilot projects.
What is the transaction limit for SPI institutions?
Up to €3 million per month in the EU or £3 million per month in the UK.
Can an SPI license be used across Europe?
No, SPI authorization is limited to the country of registration, but it can later be upgraded to an API license.
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.