PEXA’s UK Growth Hinges on Lender Support After FCA Approval
PEXA has achieved a crucial regulatory milestone with FCA approval to operate as an Authorised Payment Institution in the UK, paving the way for its Sale & Purchase product launch later this year.
- FCA grants Authorised Payment Institution status to Digital Completion UK Ltd (PEXA)
- Approval enables launch of UK Sale & Purchase product with source account capability
- PEXA aims to deepen UK market presence with lender and conveyancer partnerships
- Product launch targeted for second half of calendar year 2025
- Authorization allows PEXA to act as Third Party Managed Account provider to UK conveyancers
Regulatory Breakthrough in UK Market
PEXA Group Limited (ASX: PXA), the Australian digital property exchange leader, has secured a pivotal regulatory approval from the UK’s Financial Conduct Authority (FCA). Digital Completion UK Ltd, trading as PEXA, has been authorised as an Authorised Payment Institution (API), a critical step required to launch its UK Sale & Purchase product’s source account capability.
This FCA approval marks a significant milestone in PEXA’s international expansion strategy, enabling the company to offer a broader suite of digital property transaction services in the UK market. The authorisation not only facilitates the upcoming product launch but also empowers PEXA to act as a Third Party Managed Account provider to UK conveyancers, a role that could deepen its integration within the UK property settlement ecosystem.
Strategic Implications and Market Positioning
PEXA’s CEO and Group Managing Director, Russell Cohen, emphasised the importance of this regulatory green light, highlighting how it positions the company to strengthen relationships with UK financial institutions and legal professionals. The Sale & Purchase product, slated for launch in the second half of 2025, is expected to complement PEXA’s existing UK refinancing capabilities, which were introduced in 2022.
While the announcement does not disclose specific lender commitments yet, PEXA is actively working to secure these partnerships, which will be crucial for the product’s commercial success. The ability to manage source accounts and act as a trusted intermediary in property transactions could provide PEXA with a competitive edge in the UK’s traditionally fragmented conveyancing market.
Looking Ahead: Opportunities and Challenges
PEXA’s FCA approval opens the door to potentially significant revenue streams from the UK market, which remains one of the largest and most complex property transaction environments globally. However, the company faces the challenge of gaining widespread lender and conveyancer adoption amid established incumbents and regulatory scrutiny.
Investors will be watching closely for updates on lender commitments and the product’s market reception once launched. The success of PEXA’s UK strategy could serve as a blueprint for further international expansion, leveraging its proven digital property exchange technology beyond Australia.
Bottom Line?
With FCA approval secured, PEXA’s UK expansion accelerates—but lender buy-in will be the true test.
Questions in the middle?
- Which UK lenders will commit to PEXA’s Sale & Purchase platform ahead of launch?
- How quickly will UK conveyancers adopt PEXA’s Third Party Managed Account services?
- What competitive responses might PEXA face from established UK property transaction providers?