The Regulation on Payment Services and Electronic Money Issuance in Turkey was recently amended with the following changes:

  • The minimum amount of equity required for payment institutions has been increased. Payment institutions exclusively providing intermediary services for bill payments must now have 3 million Turkish lira (TL), other payment institutions must have 5 million TL, and electronic money institutions must have 13 million TL.
  • Payment methods of payment service providers cannot be used in business places that do not register with a business place registration system. The system is expected to be established by the Interbank Card Center (BKM) by June 30, 2022.
  • The exception regarding bill payment institutions to sign contracts with bill issuing institutions will now be applied in agreements signed not only with banks but also with all payment service providers.
  • The deadline for compliance with certain provisions of the Regulation has been extended from February 28, 2023 to April 30, 2023.

These changes were introduced in order to bring the Regulation in line with the Payment Services Directive 2 (PSD2), which is a European Union directive that sets out harmonized rules for payment services in the EU. The PSD2 aims to increase competition in the payment services market, improve security for payment transactions, and make it easier for consumers to manage their payments.

The amendments to the Regulation are expected to have a positive impact on the Turkish payment services market. The increased minimum amount of equity required for payment institutions will help to ensure that these institutions are financially sound and able to meet their obligations to customers. The requirement for business places to register with the business place registration system will help to prevent fraud and ensure that payment methods are only used in legitimate businesses. The extension of the deadline for compliance with certain provisions of the Regulation will give payment service providers more time to implement the changes required by the PSD2.

Overall, the changes to the Regulation on Payment Services and Electronic Money Issuance in Turkey are a positive development that will help to improve the safety and efficiency of payment services in the country.