West Ham have ambitions to qualify for Europe in the coming years.
He said: “In Europe it requires a whole host of things and you need lots of energy throughout the Club. You need to bring in new players and have a bigger squad to cope. If we do it we need to make sure that we do it in the right way and not rush it.”
The Hammers signed a host of players over the summer, with many of them - including Payet - excelling in the Premier League.
They currently sit in sixth place, just five points off top spot in the league table, and Slaven Bilic is harbouring ambitions to play in Europe next season.
The Europa League seems like am achievable goal with their squad, but if the East London side can continue their exceptional form, they could be an outside bet for Champions League qualification.
However, Payet believes that this current West Ham squad would not be ready to seriously take part in a European competition, as the squad is too small.
The Frenchman has claimed that more players would have to be signed to provide further depth and competition, and to deal with the heavier fixture list due to playing in another competition.
The bonus of playing in Europe is that you are able to sign better players, thus increasing your chances of qualifying for Europe again the following year.
Payet does single out an issue that still exists in the West Ham squad, but the Hammers management have proven their track record in the transfer market, and it is an exciting time to be involved with the club at the Boleyn Ground.