Papaya Global – Payments & Exchange Rate Policy

Paying your global teams in their local currency does not need to be complicated. Below, we outline how Papaya Global manages payroll payment globally, the currencies we support, and how exchange rates are applied.

How is the FX rate calculated?
The FX rate charged consists of two components: the reference rate and the FX processing fee.
The reference rate is derived the market-based rate from multiple reputable sources at the time of the transaction. It’s important to note that FX rates are in constant fluctuation. This means that even transactions just minutes apart may be settled at different rates.

Why are our FX rates better than other Payment providers?
At Papaya Global, the reference points we use are the independently available market- based rate. This provides clarity around the rate basis while allowing for necessary adjustments through the FX process fee.

How can I verify the FX rate charged by Papaya for FX transactions?
Each FX transaction shows the applied rate on the bank statement page or in the transaction file. This rate is calculated as the Market-based rate plus Papaya’s FX processing fee.

When is the FX cost applied?
Papaya Global provides support for over 100 currencies globally, enabling our clients to pay their workers and contractors in their local currencies. FX conversion occurs when the currency in your wallet differs from the currency of the payout.

What is the process for FX conversion?
The FX conversion is calculated and applied at the time of the transaction is made, typically on the day the workers are paid. However, the funding of the wallet occurs a few days prior to this transaction. This funding amount includes the required sum along with a small buffer to accommodate potential FX rate fluctuations.

This process is designed to ensure that the wallet holds sufficient funds to cover worker payments and to account for any potential shifts in FX rates. This approach also minimizes the need for customers to make multiple funding rounds.

Papaya continuously updates the funding amounts to reflect recent FX market conditions and applies a smart volatility buffer that factors in both the relevant currency pair and the timing of the transaction. Any remaining funds in the customer’s wallet are retained and can be utilized for future payments, reducing the need for additional funding in subsequent cycles.

How is the FX for EOR calculated?
For EOR workforce solution services, our FX rate considers the payroll processing cut-off and invoice date and includes hedge components that assure the payment amount and payment date. Payment is determined on the date of the salary calculation by our hedging model managed by our internal treasury. With this in place, the client is not affected by further currency fluctuations. This fixed amount is set and will not change on the date of the actual payment.
In addition, due to higher fluctuation in some countries, you will find different margins on the hedging process. Consult your Papaya CSM for a specific country list.

For your records, the FX rate can be viewed in your invoice