Atoa Payments Secures FCA Authorisation: a ‘Springboard’ to Slash Payment Processing Costs

The UK’s Financial Conduct Authority (FCA) has approved Atoa Payments, an open banking-enabled payments provider, to operate as an Authorised Payment Institution (API).

Having secured FCA authorisation, Atoa Payments can now offer a broader suite of regulated payment services, including payment initiation services, virtual account services and payment account information services, to larger businesses across the UK.

“This is a game-changing moment for Atoa,” explained Sid Narayanan, co-founder and CEO of Atoa. “From day one, our goal has been to help businesses break free from the high costs and inefficiencies of traditional payment methods such as debit cards and manual bank transfers. Achieving FCA authorisation is not just a regulatory milestone – it’s a springboard for scaling our impact.”

Since its launch in 2022, Atoa says it has supported thousands of businesses to slash payment processing costs by up to 50 per cent compared to traditional card payments. Now, with FCA authorisation, Atoa is accelerating its mission to bring fast, secure, and cost-effective payments to larger enterprises.

By offering an easy alternative to both card payments and manual bank transfers, Atoa aims to address key inefficiencies in the payments ecosystem. Unlike card payments, which charge high fees and offer slow settlement times, Atoa offers businesses instant access to funds at a fraction of the cost. Atoa also looks to reduce the administrative burden of tracking and reconciling payments while enhancing the overall payment experience for end customers.

Plans to invest

“Before Atoa, we were paying thousands of pounds a month in payment fees,” explained Jason Drury, general manager at Cambridgeshire-based Ponko Cars. “Since moving to Atoa, we’ve saved £6,000 a month in payment fees with up to 96 per cent of payments going via Atoa now.”

With backing from Valar Ventures, Passion Capital, and Leo Capital, Atoa has experienced surging demand from businesses seeking to modernise their payment infrastructure.

With FCA authorisation secured, Atoa plans to continue to invest in product development, ensuring merchants have access to secure, seamless, and cost-effective payment options that integrate smoothly into their existing operations. By strengthening its technology and infrastructure, Atoa aims to provide even greater reliability and efficiency in payments.

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