S. pappaterra is relatively rare in the ornamental trade and much sought after by enthusiasts.

It is easily distinguished from all known congeners by presence of a series of prominent black blotches beneath the dorsal-fin, plus a well-defined dark band extending along the side of the body. In recent genetic analyses its genetic distinctness was strongly supported, with S. jurupari and S. leucosticta its closest relatives.

In the aquarium hobby the name Hyphessobrycon stegemanni has frequently been misapplied to a species that has been described as Hemigrammus ataktos Marinho, Dagosta, & Birindelli 2014. The reasons for this confusion are presumably that the two occur sympatrically in the rio Tocantins system and both possess a dark lateral stripe on the body.