Frequently asked questions

Papaya’s global technology enables fast and accurate payment delivery to your global employees, contractors, EOR workers freelancers, tax authorities, and more. We provide payments at scale in local currency to 160+ countries, guaranteeing low transaction fees and competitive FX rates. 

Connecting workforce management systems to payment systems establishes a direct data flow that protects sensitive information and improves payment operations.

When systems communicate directly, organizations eliminate manual file transfers and reduce exposure to data breaches and fraud.

Direct system connectivity:

• Replaces manual data transfers with encrypted system-to-system communication
• Prevents payroll fraud
• Reduces errors by removing manual data handling
• Automates payment processes and approval flows
• Centralizes payment records for audits and reporting

Our payment connector supports a variety of payment types, enabling seamless transactions.

With Payments OS, you can leverage full automation for various payment needs, including:

• Net salaries
• Contractor payments
• Vendor invoices
• Accounts payable
• Statutory payments

The Payments OS instantly validates beneficiary accounts, conducts penny tests, and performs pre-transaction and real-time AML and fraud checks to ensure secure and on-time delivery to authorized recipients.

Paying workers of all types on a global scale requires expertise beyond simply transferring payments. You must ensure compliance with local laws and regulations, considering the various requirements and standards that can affect payment delivery. Without a dedicated payment solution for paying workers, you risk issues such as payment delays, incorrect deductions from the transferred amount, and, ultimately, damage to your reputation as an employer.

Papaya’s payment solution has one of the broadest coverages in the market, operating in 160+ countries and 130 currencies – including exotic currencies. Cross-border transactions through our platform use mid-market FX rates with a competitive mark-up, and 95% of payments are delivered on the same day they’re initiated.
Our platform also offers exceptional features for paying workforces and payroll, being able to convert payroll data into streamlined payment delivery. Papaya is a pioneer in integrating payroll and payments operations end to end, being one of the first workforce solutions to become a regulated payment provider.

Papaya payments solution is available for all companies, regardless of how they manage their payroll. Our solution can read your payroll outputs – from in-house payroll processing systems to reports generated by outsourcing providers – and convert them into payments data, streamlining your payroll payments and ensuring payments are accurate and arrive on time, every time.

In today’s interconnected global economy, it is essential for enterprises to diversify their banking relationships and implement robust contingency strategies to ensure uninterrupted payroll operations. Papaya’s payment solution is a great alternative for companies looking for a contingency plan to ensure the seamless execution and continuity of their payroll payments, especially in face of external challenges that impact day-to-day operations.

Yes. With Papaya you don’t need to open bank accounts across all the countries where you need to pay people. Instead of managing multiple bank account platforms, you can pay anyone across the globe through a single platform.

We hold money transfer licenses that enable us to pay around the globe. Our payments are processed through J.P. Morgan and other tier 1 banking rails. Papaya’s workforce wallets also sit on J.P. Morgan’s account infrastructure.

We are licensed and regulated to fund in 15 currencies and in 160 countries. We also offer the best possible transfer fees and competitive FX rates, with the guarantee of on-time payment arrival – every time. For more information on our payments licenses.

Papaya’s Payments OS offers several advantages, with the most important being the ability to pay globally with unbeatable global coverage using one unified platform.

Efficiency

A unified platform that can be seamlessly integrated into any system (via API or payment connector) to execute large volumes of payments quickly and securely, eliminating manual intervention.
Guaranteed payment landing dates ensure payments arrive on time.
Ensures local compliance by handling statutory payments on time and accurately.
Automates workforce payments, saving time and reducing manual errors.

Transparency

With Payments OS, track all payment statuses, optimize wallet funding, get the full payments report, and gain full end-to-end visibility.

Includes enhanced security measures such as fraud prevention, safeguarding funds in virtual IBAN accounts, and controlled access with approval chains.

Cost-effectiveness

A unified global payments solution eliminates the need to manage multiple bank accounts.

Prioritizing efficient payment routes and reducing intermediary banks helps minimize transaction fees and FX costs.

Managing multiple bank accounts can be complex, leading to increased manual work, the need to handle various banking files per bank, and difficulty in managing treasury functions. This fragmented process often results in errors and inefficiencies.

Papaya consolidates all payments worldwide onto one platform, offering transparency, reduced transfer fees, and lower foreign exchange (FX) fees. By enabling local payments, our solution further contributes to cost savings by minimizing fees.

Operating across multiple jurisdictions can be complex, as each bank has its own KYC screening process and local requirements. However, Papaya Global’s solution allows you to cover all locations with a single KYC process per entity.

As soon as a customer selects Papaya Global as their preferred payments vendor, your Account Executive will generate a link to the KYC form.

The self-service form takes approximately 15-30 minutes to complete, including the upload of basic business documents such as an Incorporation Certificate.

Once submitted, the information is reviewed and verified by Papaya’s compliance team—a process that can take up to two days.

After approval, you can begin onboarding to Papaya’s platform.

Payments OS simplifies global payment operations, allowing you to streamline payments for your workforce on a single platform.

• Easily fund your wallet(s) in 15 major currencies, keeping your funds segregated and safeguarded until it’s time to pay.
• Effortlessly create and manage multiple beneficiaries.
• Process up to 10K transactions in one click: create, schedule, and approve mass payments in 130+ currencies.
• Set up a desired landing date to ensure payments always arrive on time.
• Automate recurring payments at pre-defined intervals.
• Configure permissions and approval chains to comply with data privacy rules.
• Handle statutory payments seamlessly.
• Manage invoices and efficiently pay contractors.
• Access full pay-in and payout reports.
• Download detailed payment confirmations in one click.
• Split transactions into multiple currencies with a single click.

We leverage top-tier banking partners including J.P. Morgan and Citibank, ensuring enterprise-grade security and reliability for all your global payments.

Papaya’s Payment platform covers payments across the globe. You can pay out in the local currency of 160+ locations.

Papaya offers funding in 15 currencies – USD, EUR, AUD, AED, GBP, CAD, CHF, CZK, DKK, HKD, NZD, PLN, SEK, SGD, INR.

In some locations, like in the U.S or when local payment requires exotic currency, you can open a local wallet exclusively for funding and paying accounts in that country. Using local currency makes payments quicker and cheaper.

You can find our detailed payment coverage here.

We support payments in 130+ currencies.

Our platform allows you to set a specific credit date and time, and we guarantee that the payment will be credited on that date through our system.

We support paying to bank account, digital wallets, and other payment methods. We support payments in local currency or any currency your worker chooses.

Papaya’s platform supports split payments, allowing you to divide a payout across multiple currencies or payout methods. This flexibility can be tailored to your workers’ preferences, such as paying part in USD and part in local currency.

A virtual IBAN account (a “wallet”) is a Customer Money Account held with Papaya Global’s banking partners, J.P. Morgan or Citibank.
The funds belong entirely to the Papaya customer and can only be used upon their instruction. Those funds are held in segregated customer money accounts at J.P. Morgan and Citibank, completely separate from operational funds.
This ensures those customers’ money remains protected and accessible, backed by Tier-1 bank infrastructure for maximum security.

You will have the payment details for each wallet to transfer your funds. Each wallet with Papaya gets a unique IBAN, meaning the account is solely yours and no other clients of Papaya can transfer money into it.

Yes. As a licensed and regulated financial institution, holding money transfer licenses in five key jurisdictions, Papaya Global secures all customer funds in dedicated customer Money Accounts (CMAs) at J.P. Morgan and Citibank.

These accounts are fully segregated, ensuring that your funds remain separate from other customers’ funds and our corporate funds. They are also safeguarded, meaning funds are ring-fenced and can only be used for your payment instructions.

Papaya Global is a licensed and regulated payment provider. It holds payment licenses through its licensed payments arm, Azimo, in five Tier-1 jurisdictions: the United Kingdom, the European Economic Area, Australia, Canada, and Hong Kong. These licenses authorize Papaya to offer money transfer services, facilitating digital financial transactions worldwide.

Papaya is a licensed and regulated financial institution authorized to facilitate digital financial transactions. We hold all client funds in Client Money Accounts (CMAs) at top-tier banks such as J.P. Morgan Chase. These accounts are segregated– we keep your funds separate from other clients and from our own corporate funds, and safeguarded– the funds are ring-fenced and cannot be used for our own operations.

A CMA maximizes your control over your funds and minimizes the risk involved in cross-border payments. Only licensed and regulated financial institutions such as Papaya Global can be relied upon to segregate and safeguard your funds.

Yes. The funds in the wallet are under your company name, and you can request to withdraw them anytime. We do recommend keeping funds in the wallet as long as you use Papaya’s solution to avoid fees and possible FX conversion costs.

There is no limit to the number of wallets you can have. Each wallet is assigned to one funding currency, so if you wish to fund your payments in four different currencies, you will need four wallets.

We provide detailed reconciliation reports that clients can customize based on their needs. These reports show money in, money out, and can be filtered by payment groups, user roles, and other criteria, giving you a clear picture of your global financial operations.

Papaya Global’s payment services are offered through Azimo, Papaya’s licensed payments arm. Azimo is a globally licensed payment services provider. For further information on Azimo’s licences worldwide, check our licensing page.

Papaya is regulated by five different financial regulators globally in Tier-1 jurisdictions. These licenses allow Papaya to provide workforce payments worldwide.

It means that Papaya must – by legal and regulatory obligations – continuously adapt its compliance processes as risks and regulations evolve. For our clients, that means peace of mind, knowing that their payments are carried out by a provider that is at the forefront of compliance.

Using a licensed provider is not just about convenience; it’s about keeping your money safe. A licensed provider ensures that transactions adhere to stringent regulatory standards, minimizing the risk of fraud or mishandling of funds. Licensed providers employ robust security measures and encryption protocols, safeguarding sensitive financial data against cyber threats.

After your payroll is approved, we send a funding request 7 days before the funding date to help meet contractual obligations for employee and statutory payments.

Failing to fund on time may result in delays due to additional bank screening or late approval by the treasury team, potentially impacting payday.

The funding deadline varies by country (see payment coverage), but we generally recommend funding your wallet at least 3 days before the expected payment date.

At Papaya Global, to ensure on-time payments, our payment liability applies only if pre-funding is completed at least 5 business days before the payment date.

We use mid-market rates for currency conversion and lock in the spot rate at the time of payment execution. This rate is fixed for the transaction once approved, and you have full visibility into the rates used.

Many providers are hiding FX cost by using a reference rate that already includes a margin from their bank or from their Payment Service Provider.

At Papaya Global, we use the mid-market rate as a reference rate.

The mid-market rate is the mid-point between the rate a currency can be bought or sold and may change multiple times during the day.

If you’ve managed to build a great relationship with a supplier – keep it! Papaya’s platform is 3rd-party agnostic, so we’ll work with whomever you like.

Global payroll for remote or distributed teams is simplified and optimized with Papaya Global’s AI-powered platform. Our solution transforms international payroll into a strategic asset by offering seamless integration, guaranteed compliance, and embedded payments.

With precision payroll capabilities, including budget tracking and anomaly detection through AI-based data verification, businesses can ensure accurate and timely payroll execution, wherever in the world their workforce is located. Papaya makes sure you stay ahead of compliance issues with immediate alerts and updates on country-specific payroll and employment laws, reducing complexity and ensuring regulatory adherence.

And, our comprehensive platform supports all types of employment, allowing for seamless transitions between contractors, employer of record (EOR), and payroll arrangements.

Yes.

To hire workers in other countries without an EOR, you can open a local entity, though this process tends to be a lot more complicated and gives you full legal liability if any problems occur.

In general, opening a local entity rather than partnering with an EOR is advisable when you are choosing to expand into the new country and looking to hire more workers.

The answer is, it depends.

Generally, it’s easier to open EORs in countries with clearer labor laws and regulations. In other countries, though, the situation can be much more complex and EOR options may be limited.

When deciding to work with an Employer of Record, there are generally two options – one option is to work directly with the EOR. The other option is the aggregator model, where you work with an EOR provider who, in turn, works with a network of ICPs in different countries.

The wholly owned EOR model has gained a reputation as being the more reliable model of the two. However, for the most part, this tends to be a myth.

The right EOR provider puts the resources into assembling the best possible ICP network and in that way can offer peace of mind for the company. Plus, in this arrangement, there’s the assurance that the third-party provider is always on your side in cases of dispute with the EOR.

Papaya provides expert consultation on accurate workforce classification. Working conditions can often create confusion as to the classification of the worker, so we’ll make sure you’re legally protected by ensuring accurate classification of your entire global workforce.

For example, if you want to keep some of your workforce classified as contractors, you can use an AOR through Papaya – and we’ll handle all liability.

For more information check our article about our AOR solution.

Papaya Global streamlines the process of onboarding, managing, and paying global contractors through our comprehensive platform, prioritizing compliance while ensuring full liability coverage, accuracy, and minimal fees. With Papaya, businesses can effortlessly hire contractors worldwide without worrying about local compliance.

The platform offers a user-friendly interface for managing all aspects of contractor operations, ensuring security and compliance with GDPR and payments regulations. Additionally, users can fund multiple wallets in 15 currencies and execute local payments in over 160 locations swiftly and accurately, all within a single platform. Furthermore, Papaya provides the flexibility to transition contractors to full-time employees seamlessly, whether as employer of record (EOR) workers, or onto your company’s payroll.

For more information about contractor management page.