European fintech company Papaya Ltd. has officially become one of the first Electronic Money Institutions (EMIs) in Europe to secure direct access to SEPA, including both SEPA Credit Transfers (SCT) and SEPA Instant (SCT Inst).
As of today, Papaya Ltd. is listed in the European Payments Council's official register of SEPA participants.
This move places Papaya at the forefront of European payments innovation, eliminating reliance on intermediary banks and unlocking full control over euro transactions — both standard and instant — directly from its own infrastructure.
“Becoming a direct SEPA participant is no small feat. It’s not just about ticking regulatory boxes — it requires a rare mix of operational maturity, compliance strength, and technical readiness,” said Igor Tsybolyuk, CEO of Papaya Ltd. “We're proud to lead this transformation and show that EMIs can operate on the same level as banks when it comes to payments infrastructure.”
A New Chapter for Fintech
Until recently, only credit institutions — mainly banks — could participate in SEPA directly. EMIs, even those with full European licensing, were forced to rely on correspondent banks to process payments.
But the challenge wasn't malicious exclusion — it was practical. Banks were expected to take responsibility for payments and clients they didn't onboard, monitor, or fully understand. For many, that wasn’t worth the risk or operational burden.
Papaya, however, invested in building the infrastructure, procedures, and controls needed to take on that responsibility itself — and meet the strict participation criteria set by the European Payments Council and central banking systems.
What Makes It Possible
To qualify as a direct SEPA participant, Papaya successfully implemented one of the most advanced infrastructures in the EMI sector:
A compliant safeguarding model using both insurance and segregated accounts, aligned with EU regulations;
Successful technical integration with the Latvian Central Bank and full ISO 20022 and ISO 27001 compatibility;
Strong AML, risk management, and compliance systems developed to banking-level standards;
Support for both SEPA Credit Transfers and SEPA Instant, available for live client use starting September 10, 2025.
Papaya’s milestone signals a broader shift: EMIs that invest in real infrastructure, not just wrappers, can take control of their core systems — and unlock payment freedom for the clients they serve.