How We Keep Your Payments Safe, Accurate, and On Time: Papaya’s Payments Governance Model

Table of contents

Key Takeaways

  1. Payment Governance: Papaya Global ensures operational excellence through a confident governance model, accepting liability for secure, accurate, and timely payments.
  2. Global Regulatory Compliance: Holding five e-money licenses, Papaya, a licensed and regulated institution, collaborates with Tier-1 banks like J.P. Morgan Chase to establish a robust global payments network.
  3. Risk Mitigation Strategies: Papaya employs Client Money Accounts, segregated accounts, and safeguarded accounts to separate and protect client funds, significantly reducing operational risks.
  4. Data Validation and Security: Rigorous KYC and AML checks, account validation, "Penny Test," and daily rails validation optimize payment efficiency. With bank-level security measures and international certifications, Papaya ensures data security throughout the payment process.

For Papaya Global, effective governance is the key to operational excellence. Our system is built with an assortment of safety features to ensure your payments work like clockwork, arriving on time with a full value transfer.

We’re so confident in our governance model, we’re willing to accept liability for your payment delivery.

The following is a detailed explanation of how we keep your funds safe and deliver your payments on time and accurately.

Taken together, the various elements of our governance model helps our customers adapt to technological advancements, shifts in the market, and changes in business environments – while maintaining ethical standards and accountability.

Licensed and Regulated Institution with Global Payment Network

Papaya holds five e-money licenses covering all the major markets in the world. That means we report to regulators across the globe on a variety of issues, including how we protect your money.

In addition, Papaya built a global payments network through partnerships with Tier-1 banks such as J.P. Morgan Chase. This network provides global reach, ensuring that our payment transfers always use the best payment rails, designed especially for our purpose – workforce-related payments of all types.

Client Money Account (CMA) with Tier 1 Banks – When clients fund their payments accounts in order to deliver workforce payments to their employees across the globe, the funds are kept in Client Money Accounts – virtual accounts at a regulated bank dedicated to client funds. CMAs separate and protect clients’ funds from other accounts at the bank. Clients know their money is safe no matter what happens to the some of the biggest banks in the world.

Segregated Accounts – Papaya maintains segregated accounts for all our clients. The accounts separate client assets from own corporate funds. This separation helps protect the clients’ assets from being used for operational purposes and ensures they can be returned to clients, dramatically reducing risk for our clients.

Safeguarded Accounts – The accounts Papaya uses to store client funds are also safeguarded accounts to ensure they are protected from any of our own financial risks. The funds in a safeguarded account are typically ring-fenced and cannot be used for operations other their intended purpose – workforce payments – helping to protect the customer even further.

Data Validation

Papaya conducts account validation, transactional monitoring, and AML checks, adding a layer of security and assurance that payments will land precisely where they are sent and will not reach unauthorized people.

Know Your Customers (KYC) – To send money overseas to their employees, global companies must first complete an anti-fraud verification process called Know Your Customer (KYC). The screening is designed to verify the identity of the business and its key stakeholders, assess potential risks, and ensure compliance with anti-money laundering (AML) laws and other financial regulations. It helps in preventing identity theft, fraud, and other financial crimes by establishing the identity of individuals or entities engaging in financial transactions.

Anti-Money Laundering (AML) – While KYC focuses on knowing the identity of the sender of overseas funds, AML screenings focus on the identity of the recipient. Papaya screens customers against lists of individuals, entities, and countries subject to sanctions, ensuring that no one receiving funds through Papaya is subject to international sanctions or suspected of terrorist activity. Anti money laundry measures are ongoing and involve continuous monitoring of transactions. Suspicious transactions are reported to regulatory authorities as required.

Data Accuracy – Papaya performs an account validation before the starting a payment cycle, ensuring that all of the personal and banking details are accurate. If the system flags any part of the data, a request is made for additional information.

Penny Test – To ensure that every payment reaches its designated recipient, Papaya does a penny test bank transfer, to test the channel with a small transaction. The test allows Papaya to spot any obstacles to the payment before the delivery date so that payments always arrive on time.

Rails Validation – In addition to ensuring that the financial pathway to your employees is clear for global direct deposit, Papaya also tests the payment rails themselves. Papaya runs simulations of the payment delivery for each account daily. These “dry runs” allow Papaya to choose the most efficient rails for workforce payment delivery, optimizing the process and ensuring payments are delivered as quickly and directly as possible and at the lowest cost. The simulations allow Papaya to predict exactly how long the payment will require, setting the lead time accordingly.

Global Payments Expertise and Support

Papaya always maintains the strictest levels of legal compliance, with a network of payroll experts in every country you have employees, and a robust in-house team, including legal and payroll and payment experts, to guide every step of the process.

On the Ground Expertise

To ensure seamless cross-border payments, Papaya built a network for designated country experts (DCEs) in every country. The DCEs are trusted specialists with years of experience in the country, speak the language, and understand the culture. They can solve the complex legal and tax issues that arise and keep track of ever-changing regulations.

In-House Experts

Papaya has in-house support for all types of questions regarding international money transfers. We have a full legal team to advise on legal matters, and a Center of Excellence comprised of global experts on payroll, payments, and workforce management.

Data Security

By leveraging J.P. Morgan’s account infrastructure and rails, Papaya maintains strict bank-level security measures without going back and forth between platforms and moving bank files around. Papaya’s platform complies with the strictest international security standards and regulations, holding certificates in ISO27001 and ISO27701, SOC1, Type 2, SOC2, Type 2, GDPR, and CSA. All data is encrypted at rest and in transit, and no unauthorized system or individual can access that data.

Learn More About Global Direct Deposit

Papaya’s Global Workforce Payments completely reimagines how companies carry out cross-border workforce payments, using advanced technology to modernize a field that has long been mired in outdated solutions that artificially raise costs, slow the process, and create unnecessary complexity.

Find out more about how Papaya reinvented global workforce payments for the modern age. Schedule a demo today.