PEXA, the world-leading digital property exchange platform based in Leeds, has recently received approval from the Financial Conduct Authority (FCA) to become an Authorised Payment Institution (API).
The API license permits PEXA to provide payment services to its clients, including holding consumer money directly when needed, signifying a critical step for the platform as it seeks to support the digital evolution of the UK property market, while exemplifying the vital role Leeds plays as a strategic hub for fintech and innovation.
Founded in Australia, PEXA is now on a journey to improve the experiences of remortgaging, buying and selling property in the UK by innovating and improving the technology that sits behind the transaction.
This authorisation from the FCA allows PEXA to act as a Third Party Managed Account (TPMA) provider for conveyancers, enabling it to hold money in a safeguarding account until it is needed to complete the property transaction. This is a critical component for the launch of PEXA’s Sale & Purchase proposition later in 2025.The proposition can facilitate almost instant settlement of funds and title lodgement with HM Land Registry (HMLR), helping enable a more seamless end-to-end experience for those buying a home.
PEXA will now be able to offer this in conjunction with its existing remortgage proposition. And, with the use of PEXA Pay, the UK’s seventh net settlement payment scheme to clear through the Bank of England, PEXA will be able to facilitate c.70% of property transactions in England and Wales, with additional extensions to the product planned to increase this even further as innovation continues at pace.
The platform reduces operational risks, improves visibility and minimises exposure to fraud. By enabling lenders to compete on time and service quality as well as price, PEXA’s innovations will help to drive positive outcomes for all stakeholders involved and promote long-term security and stability that will significantly transform the market.
The FCA process is a rigorous one, intended to ensure that borrowers and consumers have the very best regulatory protection, particularly in the property market when transactions for homebuyers often constitute their biggest financial commitment. Gaining such approval provides additional confidence of PEXA’s commitment to operate with the highest standards of security and compliance as it helps support the property industry to modernise and grow.
With PEXA leading the charge and driving industry collaboration for the advancement of the property industry from Leeds, this is a testament to the growing importance of the city as a hub for technological innovation and its role as a key player in the UK’s digital ecosystem.
PEXA’s choice of Leeds as its UK headquarters is no coincidence. The city is at the heart of Yorkshire’s growing tech ecosystem, which is rapidly gaining recognition as a hub for innovation and economic growth.
Leeds is home to nearly 6,000 tech-related businesses, contributing close to £3 billion to the wider economy. The Yorkshire region’s transformation from its industrial roots to a digital powerhouse is underpinned by its world-class academic institutions such as the Universities of Leeds and Sheffield. These universities are renowned for their research in advanced engineering and digital technologies, attracting a talented workforce, fostering a culture of innovation, and allowing the region to become a focal point for technology.
With such a fast-growing tech scene, Leeds offered a strong foundation that aligned with PEXA’s vision – using collaborative innovation to drive meaningful change in the UK housing market. This is also why it chose to launch the Future Property Transaction Group in Yorkshire, bringing together stakeholders from across the region, including Leeds Building Society, Legal & General, West Yorkshire Combined Authority, Mortgage Advice Bureau, and Arch Law, as well as the Open Property Data Association (OPDA), to improve the property transaction process. Set up to be a regional proof point for a solution to a national problem, key stakeholders taking part in the initiative are helping keep Leeds at the heart of the UK tech boom.
It is clear that Leeds is setting the benchmark for other regions to follow, demonstrating the transformative potential of a well-oiled tech ecosystem. PEXA’s FCA approval is not only proof of this, but it will also bring further attention and funding to the region, signifying a bright future for both the city region and the wider UK tech industry.
While PEXA embarks on the next stage of its growth in the UK with the launch of its Sale & Purchase offering for the property market, the company’s success is further solidifying its role as a driver of efficiency and collaboration, while reinforcing Leeds’ status as a hub for digital innovation and a key player in the UK’s economic growth.