PEXA, the Australian-founded digital property exchange platform, has secured regulatory approval from the Financial Conduct Authority to become an Authorised Payment Institution, clearing the path for the launch of its Sale and Purchase proposition in the UK later this year.
The milestone enables the firm to act as a third party managed account provider to UK conveyancers, a key step in its efforts to modernise the country’s property transaction infrastructure. The FCA’s authorisation adds to PEXA’s growing presence in the UK, where it has already processed over £100m in remortgage transactions since entering the market in 2022.
PEXA’s forthcoming Sale and Purchase platform is expected to significantly increase its market reach, allowing the company to support around 70% of property transactions across England and Wales. This complements the remortgage services it currently offers and forms part of a broader strategy to simplify and accelerate the homebuying process through digital solutions.
At the heart of the initiative is PEXA Pay, the seventh net settlement payment scheme to clear through the Bank of England, purpose-built to handle property transactions. The infrastructure has been tailored specifically for the UK market following extensive engagement with the conveyancing and lending sectors.
Joe Pepper (pictured), UK chief executive of PEXA, described the FCA approval as a signal of the company’s long-term commitment to the UK housing market.
“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,” he said.
“Receiving FCA approval provides additional assurance over our considered approach, and of the strength of the controls and systems we have put in place. 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.”
Originally developed to digitise the conveyancing process in Australia, PEXA has turned its attention to transforming the UK’s fragmented property transaction systems. Its entry into the Sale and Purchase space has been closely watched by legal and financial services professionals eager to reduce the delays and risks that often accompany the movement of funds in housing transactions.
By securing its position as an FCA-authorised entity, PEXA is now poised to deepen its collaboration with UK conveyancers and lenders as it prepares for a wider market roll-out.
“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,” Pepper added.
