In recent years, a significant shift has occurred in the policies of many central banks, especially in Europe and North America. This shift has brought about a sharp rise in interest rates, marking a departure from the low inflation and interest rate environment that prevailed for over a decade. Alongside this change, various factors such as geopolitics, capital market adjustments, evolving business expectations, technological advancements, and societal obligations are amplifying sector-specific and regional dynamics.
Joining me today is Eynat Guez, the Co-founder and CEO of Papaya Global, a payroll and payments provider. Papaya Global is the pioneering global payroll and payments system, distinguished as the world’s foremost integrated platform that operates under official licensing and regulations.
Eynat is a leading expert in the global payments industry, and she has an abundance of experience in helping businesses navigate the complex world of cross-border payments.
Interviewer: Eynat, thank you for taking the time to speak with me today. I’m excited to talk to you about the future of the global payments industry.
Eynat Guez: It’s my pleasure. I’m always happy to talk about this topic.
The Shift From Traditional Cash-Based Transactions
Interviewer: Let’s start with the shift from traditional cash-based transactions to digital payments. What are some of the key drivers of this shift?
Eynat Guez: There are a number of factors driving the shift to digital payments. One is the increasing adoption of mobile devices. More and more people are using their smartphones to make payments, both in-store and online.
Another factor is the growing popularity of digital wallets. These wallets make it easy to store and manage multiple payment methods, such as credit cards, debit cards, and bank accounts.
The rise of fintech startups is also playing a role in the shift to digital payments. These startups are offering innovative new payment solutions that are more convenient and affordable than traditional payment methods.
Interviewer: What advantages do businesses gain from using digital payments?
Eynat Guez: Digital payments offer numerous benefits for businesses. They enhance customer satisfaction as customers value the convenience of making payments through smartphones or digital wallets.
Additionally, digital payments contribute to cost reduction by eliminating processing fees and lowering overall expenses. Moreover, they enhance security measures, enabling businesses to mitigate the risks of fraud and theft commonly associated with traditional payment methods.
The Growing Influence of Fintech Startups
Interviewer: The growing influence of fintech startups is another trend that is shaping the future of the global payments industry. How are these startups challenging traditional financial institutions?
Eynat Guez: Fintech startups are challenging traditional financial institutions in a number of ways. One way is by offering innovative new payment solutions that are more convenient and affordable than traditional payment methods. For years, the conventional payroll model has suffered from inefficiencies and isolated structures. In a typical scenario, organizations with a global workforce must collaborate with local payroll partners to maintain compliance in various jurisdictions. Consequently, this creates a fragmented system where data is dispersed among numerous tools, spreadsheets, and physical locations.
Utilizing technology to enhance the customer experience is another effective approach. Fintech startups possess the agility to swiftly respond to market fluctuations and fulfill customer demands, surpassing the capabilities of conventional financial institutions.
Interviewer: The payroll process together with a payment solution, creates a defined faster flow of money transfers to your employees, which saves you time and money.
Could you elaborate further on the advantages of utilizing an integrated payroll and payments platform?
Eynat Guez: Sure. There are many benefits to using a unified payroll and payments platform. One benefit is that it can help to save time and money.
By adopting a unified payroll and payments platform, businesses can achieve time savings through automated payroll processing while also reducing processing fees, leading to cost savings. Additionally, accuracy can be significantly improved by automating the payroll process, mitigating the risks associated with errors.
Moreover, the use of a unified platform aids in enhancing compliance for businesses, enabling them to meet regulatory requirements effectively. This is particularly advantageous for global payroll scenarios as the platform is specifically designed to address the complexities of diverse regulatory frameworks.
To provide an extra level of assurance regarding local compliance for your payroll, we integrated an automated compliance engine into our global payroll platform. This powerful engine harnesses the capabilities of AI, granting us an additional layer of protection.
When we embarked on developing the world’s inaugural payments service exclusively designed for payroll transactions, we applied the same unwavering dedication to local compliance.
The Rise in Cyber Threats
Interviewer: The rise in cyber threats is another challenge that businesses face when making payroll payments. What are some of the steps that businesses can take to protect themselves from cyber threats?
Eynat Guez: As an employer, you have the obligation to make sure that your payroll process is safe. The payroll process holds sensitive employee information, such as their names, addresses, Social Security numbers, and bank account numbers. This information can be used by criminals to commit identity theft, fraud, and other crimes.
To safeguard against cyber threats, businesses can implement several proactive measures. For example, employing robust passwords and fortified security measures is essential. It is also very important to stay vigilant regarding the latest scams and phishing attacks is crucial. Additionally, keeping software up to date is imperative to ensure system integrity. Having a well-defined contingency plan in place is vital to effectively respond to potential cyberattacks. We can help to protect your payroll process from cyber threats and ensure that your employees’ sensitive information is safe.
Interviewer: Cross-border payroll payments can be complex and expensive. What are some of the challenges and how can businesses overcome them?
Eynat Guez: Since our earliest days at Papaya, ensuring compliance has remained our foremost priority. In every country where we operate, we actively collaborate with local partners to stay abreast of any tax or labor law modifications. This is particularly crucial considering the vast coverage we have across 160 countries, where legal requirements often undergo frequent changes.
The cost of cross-border payments can be significantly higher than the cost of domestic payments. Cross-border payments can be subject to foreign exchange fees. These fees can add up, especially if you are making a large payment.
Once dealing with payroll payments, we as business owners also have to stay up to date on changes in tax laws and regulations which are constantly changing, in the countries where we have employees.
There are several ways that as businesses we can overcome these challenges. One way is to use a payment processor that specializes in cross-border payroll payments. These payment processors can help to reduce the cost and time. Another way is to use a digital currency. Digital currencies, such as Bitcoin, can be used to make cross-border payments quickly and cheaply.
Interviewer: Thank you for taking the time to speak with me today, Eynat. I appreciate your insights on the future of the global payments industry.
Eynat Guez: It was my pleasure.
Eynat Guez provides valuable insights into the future of the global payroll payments industry and how businesses can protect themselves from cyber threats. Her insights are essential for businesses that want to stay ahead of the curve and make sure their expansion does not jeopardize their data security.