Does Papaya Payments Save Or Make You Money? Well… Both

CFOs are busy—so let’s cut to the chase.

Does Papaya Payments save you money? Yes.

Does it help make you money? Yes.

We save you money because we streamline or eliminate parts of the process that pile on costs. And we help you earn money because you don’t have to fund accounts until much later in the pay cycle, increasing your working capital.

That’s the bottom line. If you’re a busy CFO, consider this a green light to proceed straight to our demo.

For those who have a few quick minutes, we’ll explain how it works. In a word, it’s our technology.

• Papaya OS is the first platform designed especially for payroll payments
• We handle the payroll process end-to-end, fixing longstanding procedural inefficiencies
• We un-frustrate companies trying to pay their employees, tax authorities, and benefits vendors

Let’s take a closer look.

The Advantage of End-to-End Payroll and Payments

Papaya OS is the only global platform that offers payroll processing AND payroll payments as a single, unified process. While payroll companies have traditionally focused on processing payroll and then handing it off to an outsourced third party, Papaya is directly involved in every part of the process—and tracks payroll data at every stage of the cycle.

That comprehensive engagement gives us a massive advantage over every other payroll provider. We (and only we) can run full simulations of the payment delivery, seeing every obstacle that would otherwise drive up costs or cause delays. It shows us exactly what the banking fees will be in advance, so we can predict your total funding obligation with complete accuracy.

That’s only one of the ways Papaya Payments saves you money.

The insight we gain from the simulations lets us choose the payment rails optimized for your exact transaction. Our rails are built in partnership with top-tier banks like JPMorgan Chase, and Citibank. We don’t use small banks with limited reach that route the payments in unexpected ways and add fees to your transactions. And we hold money transfer licenses in every major market, so your payments are fully licensed and regulated.

Since we built the rails, we also know when your money will land in your employees’ bank accounts. In countries where instant rails are available, we can complete the transaction in 15 seconds. In other countries, we guarantee arrival in 72 hours — no need for local bank accounts.

So how does that help you earn money?

It means you can fund your account at an extremely late stage and still feel confident that your payroll payments will be delivered on time. Instead of leaving the money with your payroll company or their payment service provider (PSP) for weeks in advance, you can put that money to work for you.

The Most Accurate FX Predictions

When currency exchanges are necessary, PSPs typically require a large deposit—often around 20%—to cover FX fluctuations that could impact the payment amount.

Some PSPs might offer a lower deposit, but if FX costs are higher than expected, the banks will simply take the missing amount out of employee’s salaries, leaving them short.

The size of the deposit makes sense when they demand that you fund your account weeks in advance. FX rates change constantly, and in a two-week pre-funding window, the change can be dramatic. In 2021, as one extreme example, the Turkish lira (TRY) lost over 40% of its value against the US dollar, sliding 19% in just one week.

Barring drastic currency crash scenarios, you never have to fund your Papaya account more than three days out. Within that short period, Papaya’s technology can predict FX fluctuations virtually to the dollar. So there is no need for large deposits eating away at your working capital.

Your payment obligation will be accurate, with no extra fees. And if the prediction falls short, we reconcile the amount—not your employees.

The Flexibility of Virtual Wallets

Papaya Payments saves you money in other ways, whether you use the entire Papaya OS (for payroll and payroll payments) or just the standalone payments module.

When you set up an account, you get a virtual wallet that can hold multiple currencies. Virtual wallets fill the tech gap in the banking industry. While your money is held in top-tier banks, our e-wallet makes money movement quicker and easier. E-wallets allow us to:

• Mix and match payment rails more effectively
• Fund in 12 currencies and counting, pay in 160+ countries
• Allow you to pay your global workforce without opening bank accounts in every country where you have employees

Bank accounts can be useful, but they are often difficult to open and expensive to maintain. Some bank accounts charge monthly fees. It makes financial and practical sense to use Papaya’s e-wallet for global payroll payments.

It’s the smart choice for CFOs looking to make payroll work for them instead of against them.

To learn more about how Papaya Payments can save you money and make you money, contact us today.