Upgrade of SPI License to API License in Poland

As of 2024, the Polish Financial Supervision Authority (KNF) has established clear guidelines for Specialized Payment Institutions (SPIs) looking to upgrade to Authorized Payment Institutions (APIs). This transition aligns with the demand for processing higher transaction volumes and delivering a wider range of services, reflecting the financial sector’s shift toward digitalization and the rising consumer expectations for advanced payment solutions.

Key Differences and Advantages of API Licensing:

Increased Transaction Capacity: While SPIs are limited to processing transactions up to EUR 1,500,000 per month, acquiring an API license removes these restrictions, enabling institutions to scale and support higher transaction flows, which is critical for growth.

Expanded Service Offerings: APIs are authorized to provide services like payment initiation and account information, expanding beyond basic payment processing to meet the needs of modern digital banking environments.

Enhanced Consumer Confidence: API-licensed institutions undergo comprehensive audits and compliance evaluations, strengthening consumer trust and building a solid reputation for reliability.

Regulatory Compliance and Requirements:

The upgrade from SPI to API status involves an in-depth review of the institution’s operational practices, financial standing, and strict adherence to anti-money laundering (AML) regulations. Applicants must demonstrate a strong risk management framework and advanced, secure technological infrastructure to support API-level operations.

Economic Impacts of SPI to API Transitions:

The shift to API licensing has broader benefits, not only advancing the service provider but also positively affecting the economy by:

Improving payment system efficiency and security.

Promoting competition, benefiting consumers with better options.

Attracting foreign investment by aligning with EU payment standards and enhancing the financial ecosystem.

Steps to Upgrade from SPI to API License in Poland:

Readiness Assessment: Evaluate your business’s current operations, financial health, and regulatory compliance to determine eligibility for API licensing.

Application Submission: Develop a comprehensive application for the KNF, including detailed business plans, financial forecasts, and robust risk management protocols.

Regulatory Review: The KNF will conduct a meticulous review, assessing the institution’s operational and financial capabilities, as well as compliance with regulatory standards.

On-Site Evaluation: KNF may perform on-site inspections to verify application details and evaluate the institution's internal controls and processes.

Decision Process: The KNF will reach a decision, which may include additional conditions or requirements to be fulfilled before final approval.

License Granting: Upon successful approval, the KNF will issue the API license, enabling the institution to operate at an elevated regulatory and operational level.

International Fintech Business Services:

International Fintech Business provides comprehensive support for the upgrade from SPI to API license, including:

Consultation and Guidance: Expert advice on meeting regulatory requirements and preparing the necessary documentation.

Application Assistance: Assistance in developing and submitting a comprehensive application to the KNF.

Compliance Support: Ensuring adherence to AML regulations and implementing robust risk management frameworks.

Technological Infrastructure: Guidance on establishing advanced, secure technological infrastructure to support API-level operations.

This transition process marks a critical milestone for financial institutions looking to expand their service capabilities and secure a stronger market position in Poland’s financial landscape.