How to start a money transfer business in the UK

The short answer

To send money abroad for customers in the UK you need to be registered or authorised by the Financial Conduct Authority (FCA) under the Payment Services Regulations 2017, or act as the agent of a firm that is. You also need a bank that will hold customer funds, a way to pay out in the destination country, and software to run it all.

1. Choose your regulatory route

There are three common ways in:

• Small payment institution (SPI): for firms whose payment transactions average no more than €3 million a month. Registration is lighter than full authorisation and carries no initial capital requirement, but small payment institutions cannot provide account information or payment initiation services.
• Authorised payment institution (API): no volume cap. Money remittance alone requires initial capital of €20,000; a wider set of services requires up to €125,000.
• Agent of an authorised firm: you operate under a principal's permissions while it takes regulatory responsibility. Faster to start, but you depend on the principal and share your margin.

2. Prepare for the FCA application

The FCA will want a business plan, financial forecasts, governance and risk arrangements, anti-money-laundering policies, and fit-and-proper checks on directors and owners. The statutory clock is three months from a complete application, but incomplete applications take much longer, so the preparation matters more than the form.

Most money transmitters also need to be registered for anti-money-laundering supervision. Check which supervisor applies to your activities before you apply.

3. Sort out safeguarding and banking

Authorised firms must safeguard customer funds, usually in a designated account at a bank, separate from the firm's own money. New FCA safeguarding rules took effect on 7 May 2026 and added daily reconciliations, a resolution pack and monthly returns. Opening a safeguarding account is often the slowest step, so start bank conversations early.

4. Line up payout partners

Your customers judge you on whether the money arrives. You need a route into each destination country: direct integrations with banks there, or a payout partner that covers bank deposit, cash pickup and mobile wallets. Each corridor has its own partner, pricing and settlement arrangement.

5. Get the software

You need a customer app and web portal, identity verification and sanctions screening, payment collection, a back office with a compliance queue, and reporting your MLRO can rely on. Building this from scratch typically takes many months. Licensing a platform that already has compliance, collection and payout integrations lets you launch in weeks and spend your time on customers and corridors.