Papaya has joined a group of EMIs in Europe with direct participation in the SEPA, covering both SEPA Credit Transfers (SCT) and SEPA Instant (SCT Inst).
The company is now officially listed in the European Payments Council’s register of SEPA participants, marking a significant step forward in the evolution of non-bank payment providers.
This development enables Papaya to process euro transactions, both standard and instant, directly through its infrastructure, removing reliance on intermediary banks. The move is set to improve transaction speed, transparency, and control for the company’s clients across Europe.
Historically, direct SEPA participation has been reserved for credit institutions, primarily banks. EMIs, even when fully licensed within the EU, were typically dependent on correspondent banks to handle payment processing. The restriction was largely due to the operational and compliance burden placed on banks for payments involving clients they had not onboarded or directly monitored.
Infrastructure and compliance with banking standards
Papaya’s achievement follows extensive investment in infrastructure, compliance, and technical integration to meet the European Payments Council’s stringent participation requirements. This includes a safeguarding model that combines insurance and segregated accounts, in line with EU regulations, as well as full ISO 20022 and ISO 27001 compatibility. Additionally, it features anti-money laundering (AML) and risk management systems that meet banking standards.
The company also completed technical integration with the Latvian Central Bank, enabling it to support both SCT and SCT Inst transactions. These services will be available for live client use starting 10 September 2025.
Papaya’s direct SEPA access reflects a broader trend in the European fintech sector, where well-capitalised and operationally mature EMIs are moving beyond dependence on traditional banking intermediaries. By operating its payment rails, Papaya gains greater resilience and control over transaction processing, offering its customers faster and more reliable euro payment services.
