Papaya now offers Direct SEPA Access.

2025-08-13

Papaya has joined a group of European Emerging Multilateral Institutions (EMIs) by directly participating in the Single Euro Payments Area (SEPA), covering both SEPA Credit Transfers (SCT) and SEPA Instant (SCT Inst).

Official Listing with the European Payments Council

Papaya is now officially listed in the European Payments Council’s register of SEPA participants, marking a significant milestone for non-bank payment providers.

This development enables Papaya to process euro transactions directly through its infrastructure, thereby reducing dependency on intermediary banks. The move is expected to improve transaction speed, transparency, and control for clients across Europe.

Historical Context of SEPA Participation

Traditionally, direct SEPA participation has been restricted to credit institutions, primarily banks. Even fully licensed EMIs were often dependent on correspondent banks for payment processing due to the operational and compliance burdens associated with handling payments from unmonitored clients.

Infrastructure and Compliance

Papaya achieved this milestone through significant investment in infrastructure, compliance, and technical integration. The company has adopted a safeguarding model that combines insurance and segregated accounts, aligning with EU regulations. Additionally, it is fully compatible with ISO 20022 and ISO 27001 standards, as well as meeting banking standards for anti-money laundering (AML) and risk management.

Papaya also completed technical integration with the Latvian Central Bank to support both SCT and SCT Inst transactions. These services will become live for clients starting on September 10, 2025.

Papaya’s direct SEPA access represents a broader trend in the European fintech sector where well-capitalized and operationally mature EMIs are transitioning beyond reliance on traditional banking intermediaries. By operating its own payment infrastructure, Papaya gains greater resilience and control over transaction processing, offering faster and more reliable euro payment services to its customers.