, the minimum capital for payment institutions is TRY 1 million (approx. EUR 57,000) for institutions exclusively carrying out their businesses on bill payment intermediation, TRY 2 million (approx. EUR 114,000) for other payment services, TRY 5 million (approx. EUR 284,000) for issuing electronic money and TRY 5 million (approx. EUR 284,000) for system operators.
Application for license to CBRT is free of charge. However, the cost may be as much as EUR 15.000 or more including incorporation, translation of documents, notary public fees, legal fees, and other ancillary costs. Also, the minimum capital requirements apply.
Additional comments regarding the legal situation for payment services or what FinTech’s must be aware of in this business area
As per Article 23 of the Payment Law, the system operator, payment institutions and electronic money institutions shall be required to keep all the documents and records related to the matters within the scope of this Law for at least ten years in Turkey, in a secure and accessible manner.
Moreover, Article 16 of the Communique on Management and Supervision of Information Systems of Payment Institutions and Electronic Money Institutions, all primary and secondary systems must be kept in Turkey.
Economic conditions
Market size for payment services and biggest payment service providers
It was reported that 200 FinTech firms are available in Turkey having USD 15 billion marketplace with 14% of annual growth rate (Deloitte, FinTech Ecosystem of Turkey Report, 2017 April). Iyzico and Cardtek are also examples of this sector which reached to great investments. According to Presidency of the Republic of Turkey Finance Office, there are 56 accredited payment and e-money FinTechs, 82.8 million credit cards and 70.3 digital banking customers.
Additional comments regarding the economic situation for payment services or what FinTech’s must be aware of in this business area
The benefits of the Turkish FinTech market cannot be underestimated since the industry of financial technology in Turkey is not mature and regarding its economic volume, still seems to be limited at this stage. By having this economic volume, this implies an asset which provides lots of possibilities for creativity and development in new technologies and FinTech industry.
FinTech Start-ups, which produce creative, innovative, and sometimes disruptive solutions thanks to the use of technology in the financial services sector, are demanding in Turkey as well as all over the world.