PEXA has been approved by the Financial Conduct Authority to become an authorised payment institution (API).

The authorisation is the next step in the company’s progress towards launching its UK sale and purchase product offering in the second half of 2025.

This will sit alongside its existing remortgage proposition and will enable PEXA to facilitate around 70% of property transactions in England and Wales.

PEXA also says it has additional extensions to the product planned to increase this coverage.

The FCA’s authorisation will also allow PEXA to act as a third party managed account provider to UK conveyancers for sale and purchase transactions.

Regulatory approval follows the investment PEXA has made, working with the industry to build a solution for the UK property market, including the development of PEXA Pay.

Pexa UK chief executive officer Joe Pepper says: “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.”