Workforce Payments Guide Austria
Last updated: Dec 19, 2023
Papaya Global fully support payments in Austria.
The funding currencies can be AED,AUD,CAD, CHF, kr DKK, EUR, GBP, HKD, NZD, kr SEK, SGD, USD.
The payout currency is EUR and the payment is done on the same day.
Papaya Global supports payments to contractors in Austria. The payout currency may vary based on the receiver bank account setup when receiving foreign currencies. it is advised for contractors to reach out to their bank to confirm how foreign currencies are handled
|IBAN Example Austria
|IBAN in print
|AT91 2250 0553 5831 4933
|Bank Account Number
Companies are not subject to any specific Know Your Customer (KYC) rules. However, financial institutions and other regulated entities are encouraged to leverage digital KYC to streamline the customer onboarding process.
The KYC process typically involves the collection and verification of basic information about a company’s business operations and individuals. This can include the names of the company’s directors, business addresses, national insurance or social security numbers, company numbers, and so on.
It’s important to note that while there may not be specific KYC rules for companies, businesses are still expected to comply with anti-money laundering (AML) regulations and other relevant laws. This often involves conducting due diligence on clients to verify their identities and assess potential risks of illegal intentions for the business relationship.
The banking laws and regulations that impact cross-border workforce payments are primarily related to the hiring and posting of workers, as well as the fair payment and entitlements of these workers.
Cross-Border Hiring and Posting of Workers: Foreign employers or agencies make their employees available to an Austrian firm to carry out work. These workers are entitled to receive appropriate levels of payment which are usual for the area in question.
Entitlement to Fair Payment: Workers hired or posted across borders are entitled to at least the statutory payment set by regulations or collective agreements which is due to comparable employees of comparable employers at the place where they work.
Entitlement to Paid Leave: Workers hired or posted across borders are entitled to paid leave as laid down by the Paid Annual Leave Act as long as the extent of their paid leave is less in their home country.
Obligations of Employers: Foreign employers and agencies hiring out their employees on a permit-free basis to Austria have to notify the Central Coordination Office for the Monitoring of Illegal Employment (based at the Federal Ministry of Finance) in electronic form using the web form ZKO4.”
Bank Account Opening
To open a company bank account in Austria, you typically need the following documents:
- Proof of identity: A passport is usually required.
- Proof of residency: This is usually a residency registration form and utility bills.
- Proof of employment: Details about your company and its operations.
The duration of the process can vary depending on the bank and the specific circumstances.
- UniCredit Bank Austria AG
- Raiffeisen Bank International AG
- BAWAG P.S.K.
- Citibank Europe
- JPMorgan Chase
Local Major Banks
Erste Group Bank AG: Founded in 1819, Erste Group Bank AG was the first Austrian savings bank. It is one of the largest financial services providers in Central and Eastern Europe.
Raiffeisen Bank International AG
Local B2C Payments Tools
There are several B2C payment tools available for transactions.
Credit Cards: MasterCard and VISA are widely accepted.
PayPal: This is a popular online payment system that allows users to make payments and money transfers over the internet.
SOFORT: Also known as Pay now with Klarna, SOFORT is a popular online banking method in Austria.
EPS: Electronic Payment Standard (EPS) is an online transfer system developed jointly by several Austrian banks. This makes it the main bank transfer payment method in Austria.
Klarna: Klarna allows shoppers to buy now and pay later. It’s a popular ‘shop now, pay later’ payment method in Austria.
RatePay: RatePay is another ‘shop now, pay later’ payment method in Austria. Shoppers can choose between full payment or installments to settle the invoice amount.
Apple Pay and Google Pay: These digital wallet platforms and online payment systems by Apple and Google are gaining market share in Austria.
Amazon Pay: This online payment service owned by Amazon lets shoppers use their amazon.com account to make online purchases.
Trustly: Trustly is a convenient alternative to cards, which allows consumers to make or receive payment by signing into online banking without leaving the merchant’s website or mobile app.”
Cryptocurrency is acceptable in Austria. However, using cryptocurrency in commercial transactions and the exchange of cryptocurrency for local fiat currency may require a banking or payment services license. Under current legislation, cryptocurrencies do not constitute legal tender for purposes of Austrian law.
While cryptocurrencies are accepted, their use is not as widespread as traditional payment methods, and the acceptance can vary depending on the specific merchant or service provider.