Latest news with #EMIs
Finextra
7 hours ago
- Business
- Finextra
Papaya secures direct Sepa access
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). 0 This content is provided by an external author without editing by Finextra. It expresses the views and opinions of the author. 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.
Yahoo
5 days ago
- Business
- Yahoo
UK watchdog to tighten rules for payment firms from May 2026
LONDON (Reuters) -Britain's Financial Conduct Authority (FCA) said on Thursday it would roll out stricter rules for electronic payment firms from May 2026 to better safeguard customers' money. The regulator, which first laid out proposed reforms for payment firms in September, said companies would be required to keep customer money separate from their own funds, so that it could be returned if the firm fails. The payments sector has come under greater scrutiny as more consumers have become exposed to the risk of poor safeguarding. Between 2017 and 2022, the use of current accounts with online money and payment institutions - rather than traditional banks - has surged five-fold, a FCA survey shows. Under the tighter rules, larger payment firms will be subject to monthly reporting and annual audits, and they will be required to conduct daily checks to ensure the right amount of money is being safeguarded to protect customers. The rules will apply to payment institutions, e-money institutions (EMIs) and credit unions that issue e-money, the regulator said. EMIs flooded London over the last decade, benefiting from a lighter regulatory burden compared to banks. Last month foreign exchange broker Argentex, an e-money institution (EMI) since 2018, fell into special administration after succumbing to market volatility following a decline in the company's liquidity position. Failed payment firms had average shortfalls of 65% of their customers' funds over a five-year period to mid-2023, the FCA said. "People rely on payment firms to help manage their financial lives. But too often, when those firms fail, their customers are left out of pocket," said Matthew Long, director of payments and digital assets at the FCA. "We'll be watching closely to see if firms seize the opportunity and make effective improvements that their customers rightly deserve – this will help us to determine whether any further tightening of rules is necessary." UK Finance, a lobby group for the finance industry, said it was important that the new safeguarding rules were assessed for their impact and effectiveness before any further changes were made. "We support a robust and effective safeguarding regime that protects customers without placing unrealistic demands on businesses, particularly smaller firms," a spokesperson said. "Getting the balance right means having rules that are practical, proportionate, and internationally competitive." Sign in to access your portfolio
CNA
5 days ago
- Business
- CNA
UK watchdog to tighten rules for payment firms from May 2026
LONDON :Britain's Financial Conduct Authority (FCA) said on Thursday it would roll out stricter rules for electronic payment firms from May 2026 to better safeguard customers' money. The regulator, which first laid out proposed reforms for payment firms in September, said companies would be required to keep customer money separate from their own funds, so that it could be returned if the firm fails. The payments sector has come under greater scrutiny as more consumers have become exposed to the risk of poor safeguarding. Between 2017 and 2022, the use of current accounts with online money and payment institutions - rather than traditional banks - has surged five-fold, a FCA survey shows. Under the tighter rules, larger payment firms will be subject to monthly reporting and annual audits, and they will be required to conduct daily checks to ensure the right amount of money is being safeguarded to protect customers. The rules will apply to payment institutions, e-money institutions (EMIs) and credit unions that issue e-money, the regulator said. EMIs flooded London over the last decade, benefiting from a lighter regulatory burden compared to banks. Last month foreign exchange broker Argentex, an e-money institution (EMI) since 2018, fell into special administration after succumbing to market volatility following a decline in the company's liquidity position. Failed payment firms had average shortfalls of 65 per cent of their customers' funds over a five-year period to mid-2023, the FCA said. "People rely on payment firms to help manage their financial lives. But too often, when those firms fail, their customers are left out of pocket," said Matthew Long, director of payments and digital assets at the FCA. "We'll be watching closely to see if firms seize the opportunity and make effective improvements that their customers rightly deserve – this will help us to determine whether any further tightening of rules is necessary." UK Finance, a lobby group for the finance industry, said it was important that the new safeguarding rules were assessed for their impact and effectiveness before any further changes were made. "We support a robust and effective safeguarding regime that protects customers without placing unrealistic demands on businesses, particularly smaller firms," a spokesperson said.
Reuters
5 days ago
- Business
- Reuters
UK watchdog to tighten rules for payment firms from May 2026
LONDON, Aug 7 (Reuters) - Britain's Financial Conduct Authority (FCA) said on Thursday it would roll out stricter rules for electronic payment firms from May 2026 to better safeguard customers' money. The regulator, which first laid out proposed reforms for payment firms in September, said companies would be required to keep customer money separate from their own funds, so that it could be returned if the firm fails. The payments sector has come under greater scrutiny as more consumers have become exposed to the risk of poor safeguarding. Between 2017 and 2022, the use of current accounts with online money and payment institutions - rather than traditional banks - has surged five-fold, a FCA survey shows, opens new tab. Under the tighter rules, larger payment firms will be subject to monthly reporting and annual audits, and they will be required to conduct daily checks to ensure the right amount of money is being safeguarded to protect customers. The rules will apply to payment institutions, e-money institutions (EMIs) and credit unions that issue e-money, the regulator said. EMIs flooded London over the last decade, benefiting from a lighter regulatory burden compared to banks. Last month foreign exchange broker Argentex, an e-money institution (EMI) since 2018, fell into special administration after succumbing to market volatility following a decline in the company's liquidity position. Failed payment firms had average shortfalls of 65% of their customers' funds over a five-year period to mid-2023, the FCA said. "People rely on payment firms to help manage their financial lives. But too often, when those firms fail, their customers are left out of pocket," said Matthew Long, director of payments and digital assets at the FCA. "We'll be watching closely to see if firms seize the opportunity and make effective improvements that their customers rightly deserve – this will help us to determine whether any further tightening of rules is necessary." UK Finance, a lobby group for the finance industry, said it was important that the new safeguarding rules were assessed for their impact and effectiveness before any further changes were made. "We support a robust and effective safeguarding regime that protects customers without placing unrealistic demands on businesses, particularly smaller firms," a spokesperson said. "Getting the balance right means having rules that are practical, proportionate, and internationally competitive."
Finextra
15-07-2025
- Business
- Finextra
Clear Junction launches fiat rails for crypto firms with vIBAN service
Clear Junction, a specialist in global payments and banking infrastructure for regulated financial institutions, has extended access to its named virtual IBAN (vIBAN) services to licensed virtual asset service providers (VASPs) – a functionality previously only available to banks and electronic money institutions (EMIs). 0 This content is provided by an external author without editing by Finextra. It expresses the views and opinions of the author. A named vIBAN is a unique code assigned to an individual customer for sending and receiving payments, without creating a separate payment account. This approach enables full traceability of funds, streamlined reconciliation, enhanced AML and KYC processes, and greater institutional trust. By offering this capability to European and UK-licensed crypto asset providers, Clear Junction aims to strengthen the fiat infrastructure available to regulated crypto firms and help them overcome long-standing barriers to accessing reliable account services. It forms part of Clear Junction's broader strategy to bridge the fiat and digital asset ecosystems through enterprise-grade, compliance-focused infrastructure. As regulatory clarity improves across key markets – including the EU's Markets in Crypto-Assets (MiCA) framework and the UK's new crypto registration requirements – crypto companies are under growing pressure to meet higher standards of compliance, AML screening, and auditability. Yet many still face institutional gatekeeping and outdated banking systems that restrict access to essential fiat services, often forcing them to rely on high-friction workarounds or intermediaries. Clear Junction's named vIBANs solve these challenges by giving digital asset providers direct access to fiat settlement capabilities and customer-level account referencing. This unlocks a range of crypto-specific use cases, including me-to-me transfers, fiat-to-crypto conversions, and automated treasury operations. In turn, it boosts operational efficiency, reduces risk, and enables crypto-native institutions to deliver bank-like services on par with traditional fintechs and EMIs. Dima Kats, CEO and Founder of Clear Junction, commented: 'The virtual asset ecosystem has matured rapidly, but fiat infrastructure has often lagged behind. We're closing that gap, and this launch is another step toward normalising crypto within the global payments ecosystem. 'We've long understood that VASPs face an uphill battle accessing fiat services, even when they're fully licensed and compliant. This launch is about solving that pain point with a practical, scalable solution. By extending named vIBANs to digital asset providers, we're giving regulated crypto institutions the tools they need to scale responsibly, with full compliance and greater operational clarity.' Example use cases include: • Wallet operators assigning unique vIBANs to individual users, enabling fiat deposits/withdrawals with reference-free reconciliation • Crypto exchanges managing multiple jurisdictions and currency pairs with cleaner fund flows • OTC desks executing high-volume fiat-to-crypto conversions under tighter operational controls • Token issuers streamlining fiat treasury flows across ecosystems This service complements Clear Junction's broader digital asset offering, which includes: • Instant fiat deposits and withdrawals • EUR and GBP payment rails via SEPA and FPS • On/off-ramp solutions for fiat-to-crypto transactions • On-chain transfers via its stablecoin payment service supporting USDT and USDC on Ethereum, Solana, and Tron networks The expanded vIBAN service is backed by Clear Junction's deep regulatory expertise and technology platform purpose-built for regulated institutions. The group is one of the few UK-based entities licensed both as an EMI and a crypto asset service provider by the Financial Conduct Authority, uniquely positioning it to support the evolving needs of the digital asset sector. Founded in 2016, Clear Junction enables financial institutions to access accounts, vIBANs, payment networks, FX services, and e-wallets quickly, securely, and in full compliance with regulatory requirements. Its infrastructure is built to reduce time to market, expand access to new regions, and power faster, safer global payments.
