Sending cross-border payments from the United Kingdom: the stack

By Polynopsis team · Last updated 28 October 2026

Collecting money in the UK and sending it abroad requires FCA authorisation as a payment institution or e-money institution (or registration as a small payment institution below a monthly average of 3 million euros), and since 7 May 2026 the CASS 15 safeguarding rules require internal and external reconciliations every reconciliation day plus a monthly safeguarding return. The typical stack pairs a safeguarding bank such as ClearBank, Griffin or Banking Circle with Faster Payments (24/7, up to £1 million at scheme level), open banking and Direct Debit collections from providers such as TrueLayer or GoCardless, and CHAPS and Bacs for same-day and batch flows.

Currency	GBP
Collection and funding rails	Faster Payments, CHAPS, Bacs (Direct Credit and Direct Debit)
Holiday calendar	United Kingdom bank holidays 2026 and 2027

The United Kingdom market

Personal remittances paid from the United Kingdom were US$13.17 billion in 2025, up from US$12.27 billion in 2024 (World Bank data, last updated 8 October 2026). source
The Faster Payment System processed 5.55 billion transactions with a value of £4.84 trillion in 2025. source
In June 2026 the CMA9 banks recorded 40.16 million open banking payments, including 7.73 million sweeping variable recurring payments, and 18.81 million user connections; cumulative open banking payments passed one billion. source
Average daily foreign exchange turnover in the UK was US$4,745 billion in April 2025, making the UK the largest FX centre with 37.8% of global turnover (BIS Triennial Survey, UK data). source
CHAPS has over 35 direct participants and several thousand financial institutions that make CHAPS payments through one of the direct participants. source

Licensing: who can send money from the United Kingdom

Money remittance and the execution of credit transfers and direct debits are payment services under the Payment Services Regulations 2017; a firm providing them must be an authorised payment institution or a small payment institution unless it is already another type of payment service provider or is exempt. Issuing e-money requires authorisation or registration under the Electronic Money Regulations 2011. source
Initial capital for an authorised payment institution is 20,000 euros for money remittance only, 50,000 euros for payment initiation and 125,000 euros for the services in paragraphs 1(a) to (e) of Schedule 1, such as executing payment transactions (PSRs 2017, Schedule 3). source
An authorised e-money institution needs initial capital of at least 350,000 euros; a small e-money institution with average outstanding e-money of 500,000 euros or more holds at least 2% of that amount (EMRs 2011, Schedule 2). source
Registration as a small payment institution requires the monthly average of payment transactions over the preceding 12 months, including those of UK agents, not to exceed 3 million euros, and excludes account information and payment initiation services (PSRs 2017, regulation 14). source
An authorised payment institution must have its head office and registered office in the UK and carry on some of its payment services business in the UK; once authorised, it must register with the FCA any agents that provide payment services on its behalf. source
Non-bank payment service providers have been eligible since 2017 to hold Bank of England RTGS settlement accounts for Bacs, CHAPS, Faster Payments and the Image Clearing System; applicants must complete an FCA supervisory assessment including a s166 skilled person report and should plan on at least twelve months to gain direct access after the FCA work is complete. Faster Payments also offers a directly connected non-settling model. source
Cryptoasset businesses must register with the FCA under the Money Laundering Regulations before providing in-scope services in the UK; a new FSMA authorisation regime comes into force on 25 October 2027, and firms that intend to keep operating should apply by 28 February 2027, in the application period that opened on 30 September 2026. source
Identity verification for company directors and people with significant control became a legal requirement at Companies House on 18 November 2025, starting a 12-month transition period. source

This page explains the rules in general terms and is not legal or regulatory advice. Check the primary source and take advice on how the rules apply to your firm.

Holding customer funds

An authorised payment institution must keep relevant funds segregated, and if it still holds them at the end of the business day after receipt it must place them in a separate account with an authorised credit institution or the Bank of England, or invest them in FCA-approved secure liquid assets held with an authorised custodian; insurance or a comparable guarantee is the alternative method (PSRs 2017, regulation 23). source
CASS 15 applies to authorised payment institutions, small payment institutions that opt to safeguard, e-money institutions and credit unions that issue e-money. It does not apply where both payer and payee are served from outside the UK, and funds for those transactions must not be mixed with relevant funds even if routed through a UK correspondent. source
The FCA's new safeguarding rules, set out in policy statement PS25/12, apply from 7 May 2026 to payment and e-money institutions that safeguard customer funds. source
Firms must perform internal and external safeguarding reconciliations at least once each reconciliation day, a definition that excludes weekends, bank holidays and days when relevant foreign markets are closed; they must also keep resolution packs and, for audits, submit the first within 6 months and later ones within 4 months of the audit period end. source
Relevant funds received must be allocated to an individual client no later than the end of the business day after the day of receipt, and recorded as unallocated relevant funds until then (CASS 15.2). source
For each relevant funds bank account the firm must send the bank a signed safeguarding account acknowledgement letter for countersignature; Bank of England settlement accounts are excluded from this requirement (CASS 15.7). source
Every safeguarding institution must submit a safeguarding return to the FCA within 15 business days of the end of each calendar month (SUP 16.14A). source

Collection and funding rails

Rail	Operator	What matters	Source
Faster Payments	Pay.UK	Available day and night, 365 days a year, for real-time payments of up to £1 million at scheme level; individual banks and building societies set their own lower limits.	source
CHAPS	Bank of England	Sterling same-day high-value system, usually open 06:00 to 18:00 Monday to Friday excluding England and Wales bank holidays; customer payments must be submitted by 17:40 and there is no minimum or maximum payment amount.	source
Bacs (Direct Credit and Direct Debit)	Pay.UK (settlement in Bank of England RTGS)	Processes direct debits and direct credits across a three-day cycle, with net settlement in RTGS once each business day.	source

The send-side stack, layer by layer

A starting shortlist for each layer, described from each provider's own documentation. Confirm terms, coverage and licences with each provider.

Sponsor banks and safeguarding accounts

Provider	What it does	Source
ClearBank	PRA-authorised bank offering safeguarding, client money and multi-currency accounts to regulated firms through one API, with direct connections to Bacs, CHAPS and Faster Payments in the UK and SEPA Credit, SEPA Instant and T2 in Europe, plus up to 6 million virtual IBANs.	source
Griffin	UK bank offering safeguarding accounts for FCA-regulated e-money and payment institutions, either one pooled account or dedicated accounts with a unique sort code and account number for each customer.	source
Banking Circle	Agency banking gives regulated entities in the UK with a SWIFT BIC access to Faster Payments and to SEPA Credit Transfer and SEPA Instant using their own BIC and IBANs, without direct clearing connections or a central bank settlement account.	source
Modulr	FCA-authorised e-money institution (Modulr FS Limited, FRN 900573) providing accounts in a range of currencies, instant, scheduled and recurring pay-outs, and pay-ins and collections.	source

Collections and pay-ins

Provider	What it does	Source
TrueLayer	Pay by Bank open banking payments received into a TrueLayer merchant account; authorised by the FCA under the PSRs 2017 and EMRs 2011 (FRN 901096).	source
GoCardless	Instant one-off bank payments over Faster Payments that settle the same or next day, and recurring Direct Debit collection across 30+ countries and 8 bank debit schemes.	source
Plaid	Pay by Bank, recurring payments and payouts; Plaid Financial Limited is authorised by the FCA (FRN 804718) for account information and payment initiation services and does not hold funds.	source

Stablecoin ramps

Provider	What it does	Source
Zodia Markets	Institutional digital asset brokerage trading 47 pairs across 17 currencies, including GBP, EUR, USD, USDC and USDT, with same-day cross-border settlement; Zodia Markets (UK) Limited is registered with the FCA under the MLRs for its cryptoasset activities only (FRN 954558).	source
Kraken	OTC desk with request-for-quote trading in quote currencies including GBP, EUR, USD, USDC and USDT, a 50,000 USD equivalent minimum order and settlement from the client's Kraken balance.	source
BVNK	Stablecoin payments infrastructure to fund in stablecoins and pay out in fiat, accept stablecoins and settle in fiat, and convert between fiat and stablecoins; it holds an FCA-regulated EMI licence in the UK for fiat and states that crypto is not FCA-regulated.	source
Bitstamp	Crypto exchange serving UK clients through Bitstamp UK Ltd, registered with the FCA for certain cryptoasset activities under the MLRs (FRN 978690).	source

FX and liquidity

Provider	What it does	Source
Convera	Sends single or batch payments in over 140 currencies to more than 200 countries and territories, collects in more than 100 currencies, and offers forwards and FX options; Convera UK Financial Limited is FCA-authorised under the PSRs 2017 (ref 966305).	source
Ebury	Multi-currency business accounts for payments to 160+ countries in 140+ currencies, local collection accounts, spot FX, forwards, options and business APIs.	source
Currencycloud	Cross-border infrastructure with virtual named accounts to collect, convert and pay in 36+ currencies across 180+ countries; licensed in the UK, the Netherlands, Canada, Australia, Singapore and multiple US states.	source

KYC and KYB providers

Provider	What it does	Source
Companies House API	Official API returning live, real-time information about limited companies and other companies within the Companies Act 2006.	source
GBG	Identity data verification across 50 countries and document and biometric verification across 195 countries.	source
Entrust (Onfido)	Identity verification with biometric, document and data verification that supports KYC, AML and eIDAS 2.0 requirements.	source

Bank data and open banking

Provider	What it does	Source
Plaid	Account linking with categorised transactions and real-time balances across 12,000+ financial institutions and personal and business accounts in 20 countries.	source
Yapily	Open banking data API connecting to over 2,000 banks in 19 countries for consumer and business account data; regulated services in the UK are provided by Yapily Connect Ltd (FCA 827001).	source

When money can leave the United Kingdom

Faster Payments is available to customers 24/7, but net settlement between participants takes place in the Bank of England RTGS system three times each business day. source
CHAPS does not run on weekends or England and Wales bank holidays, and the customer payment deadline is 17:40, so any same-day sterling funding of an overseas account must be instructed before then. source
England and Wales bank holidays fall on 25 and 28 December 2026 and 1 January 2027, and on 27 and 28 December 2027, so CHAPS, which closes on weekends and England and Wales bank holidays, does not run from 25 to 28 December in either year. source
The Bank of England will move the start of CHAPS settlement from 06:00 to 01:30, with go-live targeted for September 2027; sending in the new window is optional, and Pay.UK systems such as Bacs and Faster Payments keep their existing timelines. source

Corridors from here

Frequently asked questions

Do I need an FCA licence to send money abroad from the UK?

Yes, unless you are already a bank or another payment service provider or are exempt. Money remittance is a payment service under the PSRs 2017, so you need authorisation as a payment institution or registration as a small payment institution, which is limited to a monthly average of 3 million euros of payment transactions.

What changed in UK safeguarding in 2026?

From 7 May 2026 the CASS 15 rules require internal and external safeguarding reconciliations at least once each reconciliation day, a monthly safeguarding return within 15 business days of month end, resolution packs and safeguarding audits, with the first audit due within 6 months of the audit period end.

How much capital does a UK payment institution need?

Initial capital is 20,000 euros for money remittance only and 125,000 euros if you execute payment transactions such as credit transfers. An authorised e-money institution needs at least 350,000 euros.

Can a payment institution settle directly at the Bank of England?

Yes. Non-bank payment service providers can hold RTGS settlement accounts for Bacs, CHAPS, Faster Payments and the Image Clearing System, after an FCA supervisory assessment that includes a s166 skilled person report. The Bank says to plan on at least twelve months to gain direct access.

When can sterling move on weekends?

Faster Payments runs 24/7 for payments up to £1 million at scheme level, with lower limits set by individual banks. CHAPS and Bacs run only on business days, and CHAPS customer payments must be submitted by 17:40.

Are stablecoin on and off ramps regulated in the UK?

Today cryptoasset businesses register with the FCA under the Money Laundering Regulations. A full FSMA regime starts on 25 October 2027, and firms that want to keep operating should apply by 28 February 2027.

Sources

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