In a move to strengthen its security framework, Malta-based electronic money institution (EMI) Papaya Ltd. has announced a new partnership with SME Bank. The collaboration will see the implementation of a dedicated safeguarding account, further reinforcing the company’s commitment to the secure and compliant handling of customer funds.
This partnership is part of Papaya’s ongoing strategy to strengthen its infrastructure and build upon its existing security measures. The company already utilizes another EU-based banking partner for safeguarding, and the new arrangement with SME Bank creates a dual-banking model for customer funds.
The core of this arrangement is a commitment to regulatory excellence and transparency. Under the partnership, all client funds will be held in segregated accounts at SME Bank, ensuring they are completely separated from Papaya’s operational funds. This structure, which meets the strict requirements of EU regulations, provides a critical layer of protection. In the unlikely event of financial difficulties affecting the institution, customer funds would remain safe and protected from creditors.
“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,” said Igor Tsybolyuk, CEO of Papaya Ltd. “The new safeguarding account reflects our long-term approach to reliability, transparency, and regulatory excellence.”
This collaboration highlights a growing trend among EMIs to enhance their security protocols and exceed baseline regulatory requirements. By diversifying their safeguarding partners, fintech companies like Papaya are building multi-layered security frameworks designed to instill greater confidence and peace of mind among their users. This proactive approach to security is becoming a key differentiator in the competitive fintech market.
“At SME Bank, we understand that security is non-negotiable,” said Dovilė Bansevičienė, Chief Commercial Officer at SME Bank. “We’re committed to being the trusted banking partner that financial institutions can rely on to secure their most important assets – their customers’ funds.”