Papaya Ltd has established a new partnership with SME Bank to enhance the protection of customer funds through dedicated safeguarding accounts. The Malta-based electronic money institution will implement additional security measures that separate client deposits from corporate finances, strengthening regulatory compliance across its global operations.
The collaboration represents an expansion of existing safeguarding protocols already maintained by the financial technology company. Under the new arrangement, customer funds will be housed in segregated accounts managed by SME Bank, creating an additional layer of protection that aligns with European Union regulatory standards.
Enhanced Fund Protection Measures
The safeguarding structure ensures complete separation between customer deposits and corporate operational funds. This approach protects client money in scenarios where the institution might face financial difficulties, providing reassurance to users who rely on the platform for payment services.
“This step strengthens the solid foundation we’ve build. Our users across the globe trust us to manage their money — not only because of the features we offer, but because of how seriously we take their financial safety” ~ Igor Tsybolyuk, CEO of Papaya Ltd.
The implementation follows completion of required regulatory procedures and formalities. SME Bank’s involvement adds institutional expertise in fund protection to support the electronic money institution’s compliance framework.
Dual Banking Strategy
The new safeguarding account complements existing protections already established with another European banking partner. This dual-banking approach creates multiple security layers designed to ensure customer confidence and regulatory adherence across different jurisdictions.
“At SME Bank, we understand that security is non-negotiable. Through this collaboration, we’re providing a dedicated safeguarding account that ensures all client funds are held separately from company finances” ~ Dovilė Bansevičienė, Chief Commercial Officer at SME Bank.
The multi-institutional framework reflects industry best practices in financial technology, where diversification of banking relationships helps mitigate concentration risk while maintaining operational flexibility.
Regulatory Compliance Framework
As an electronic money institution regulated by the Malta Financial Services Authority, the company operates under strict European regulatory oversight. The enhanced safeguarding measures align with Payment Services Directive requirements and broader EU financial services regulations.
The segregated account structure meets stringent regulatory standards that govern electronic money institutions across European markets. These requirements ensure customer funds remain protected regardless of the institution’s financial circumstances.
Service Portfolio and Market Position
The company provides digital payment solutions including Mastercard payment cards and International Bank Account Numbers for individual and business clients. Additional services encompass SEPA transfer capabilities, co-branded banking solutions, and application programming interfaces for financial technology applications.
The Malta-based institution also offers automated digital Know Your Customer solutions and operates as both an Account Information Service Provider and Payment Initiation Service Provider under PSD2 compliance frameworks. These services support the broader financial technology sector through white-label and co-branded offerings.
The enhanced safeguarding measures support the company’s expansion strategy while maintaining regulatory compliance across multiple service lines. Customer fund protection remains central to maintaining trust in digital payment platforms, particularly as regulatory scrutiny intensifies across European markets.