Born in Schönau, Bohemia, his father Franz Anton Rudolf Payer was a retired officer of the Austrian Uhlans who died when Julius was only fourteen.

Since 1863 Payer was assigned as a history and geography teacher to the cadet school in Eisenstadt, Kingdom of Hungary (1526–1867) (present-day Austria) and to the Theresian Military Academy.

In 1868 the Austro-Hungarian Minister of War Franz Kuhn von Kuhnenfeld appointed him a general staff officer at the k.k.

In 1862 Payer had started exploratory tours of the Tyrolean Alps and the High Tauern range in his free time.

Travelling to the coast of East Greenland on the Germania under Captain Carl Koldewey in 1869–1870, they reached as far north as Shannon Island.

During this voyage they made the discovery of Franz Joseph Land, however upon their return to Vienna many critics voiced doubts about its existence and about the experiences of other participants in the expedition.

[citation needed] Payer could have proven his statements using testimonies, diaries and sketches, however his efforts were thwarted, including his promotion to captain.

He was awarded 44 florins on 1 October 1874 for the discovery of Franz Joseph Land (about equal to the monthly salary of a Sub-lieutenant at the time).