Property exchange platform PEXA has been approved by the Financial Conduct Authority (FCA) to become an Authorised Payment Institution (API) as it prepares to launch its UK Sale & Purchase product offering later this year.
This authorisation will allow PEXA to act as a Third Party Managed Account (“TPMA”) provider to UK conveyancers for Sale & Purchase transactions and facilitate approximately 70% of property transactions in England and Wales in conjunction with the existing remortgage proposition.
Regulatory approval follows the significant investment PEXA has made, working with the industry to build a bespoke and compelling solution for the UK property market, including the development of PEXA Pay, the seventh net settlement payment scheme to clear through the Bank of England. This is designed specifically to facilitate seamless property transactions.
Its broader Sale & Purchase offering will build on the significant momentum the business has generated with its remortgage-focused proposition, which has already processed over £100m in transactions since its successful launch in the UK market in 2022.
Additional assurance
Joe Pepper, UK CEO of PEXA, said: “We know that change in the property market has to be earned, not imposed. Any innovation introduced to the market has to be done the right way, able to scale, and built to last. Receiving FCA approval provides additional assurance over our considered approach, and of the strength of the controls and systems we have put in place.
“As we build towards the launch of our Sale & Purchase solution later this year, this news should give our partners further confidence we operate responsibly with the highest standards of security and compliance as we help support the industry’s modernisation and growth. We’re here for the long-term, with security, stability, and partnership front of mind.
“This significant milestone will enable us to build further momentum in the UK, developing and deploying the trusted digital infrastructure to support the evolution of property transactions. We look forward to working even more closely with the conveyancing and lending industry as we do so.”