Name
Global FinTech Guide
Country _ Name
Turkey
SectionTitle
Payment services
Body
FinTechs belonging to this category offer alternative payment services which are supposed to provide a faster and cheaper way for national, European, and international payments for private and business customers by using new technologies.

For example, payment service providers hereby offer solutions to easily integrate several payment services in online shops.

Some FinTechs furthermore provide real cash register systems and online-reservation solutions for restaurants and shops providing their own payment services or making use of the payment services of FinTechs described above.

Introduction

Attitude of the country towards modern payment services

The Law on Security Settlement Systems, Payment Services and Electronic Money Institutions No 6493 (“Payment Law”) applies to payment systems, security settlement systems, payment institutions, and electronic money institutions operating in Turkey. Only banks, digital banks and payment service providers authorised by the Central Bank of the Republic of Turkey (“CBRT”) are allowed to carry out payment services in Turkey. In the last couple of years, the use of payments services has grown rapidly, making some of the FinTech companies fastest growing companies in Turkey. The governmental approach to the payment services is positive and encouraging. 

Legal affairs

Obligations and requirements to provide payment services or ancillary services described above

As per the Payment Law, payment system and securities settlement system can only be operated with a license acquired from the CBRT. Payment system is defined under the Payment Law as “the structure that has common rules and provides the infrastructure required for clearing and settlement transactions carried out in order to realize fund transfers arising from transfer orders among three or more participants” and securities settlement system is defined as “the structure that has common rules and provides the infrastructure required for the clearing and settlement transactions carried out in order to realize securities transfers arising from transfer orders among three or more participants”.

Moreover, the following activities are defined as payment services under Article 12 of the Payment Law: 

  • All the transactions required for operating a payment account including the services enabling cash to be placed on and withdrawn from a payment account.
  • Execution of payment transactions, including transfers of funds on a payment account with the user’s payment service provider, direct debits, including one-off direct debits, payment transactions through a payment card or a similar device, credit transfers including standing orders. 
  • Issuing or acquiring payment instruments.
  • Money remittance.
  • Execution of payment transaction, where the consent of the payer to execute a payment transaction is given by means of any telecommunication, digital or IT device and the payment is made to the telecommunication, IT system or network operator, acting only as an intermediary between the payment service user and the supplier of the goods and services.
  • Corresponding services enabling bill payments.
  • At the request of the payment service user, the payment initiation service related to the payment account at another payment service provider.
  • Upon approval of the payment service user, the online provision of consolidated information of one or more payment accounts held at payment service providers by payment service users. 
  • Other transactions and services reaching the level to be determined by the Bank in terms of total size or impact in payments.

Payment services, above, can only be provided by banks o
s not have control in the banks where Article 71 of Law No. 5411 is applied or banks that were transferred to the Savings Deposit Insurance Fund before the Law No. 5411 came into force, and documents to be obtained from the Savings Deposit Insurance Fund regarding these issues,

k. Undertaking of the shareholders of the company, who have direct or indirect shares of ten percent or more, and the real and legal persons holding the control that they do not directly or indirectly own ten percent or more of a share or control in bankers subject to liquidation, factoring, financial leasing, financing, and insurance companies whose operating licenses have been revoked except for voluntary liquidation, and institutions operating in money and capital markets,

l. Fields of activity of legal entity partners who have direct or indirect shares of ten percent or more, and legal entities holding control, detailed explanations about investment and business areas, balance sheets and income statements of the last three years, approved by certified public accountants licensed in accordance with the Law No. 3568 or passed independent audit, report prepared by one of the rating companies, for legal entity partners in the nature of financial institutions, if any,

m. Lists showing the privileged shares of legal entity partners who have direct or indirect shares of ten percent or more, and legal entities holding the control, or, in the absence of privileged shares, a corresponding undertaking (ANNEX-5),

n. A letter of undertaking stating that the partners with a direct or indirect share of ten percent or more and the real and legal persons holding the control do not have due tax and premium debts (Annex-4, Annex-5),

o. A report to be prepared by certified public accountants who have been licensed in accordance with the Law No. 3568, on the financial situation of real person shareholders holding directly or indirectly a share of ten percent or more, and real persons holding control,

p. In the transactions to be carried out with the Institution, the samples of the power of attorney given to the person or persons authorised to represent the partners, if any,

q. Except for those whose identity and address information can be accessed electronically through the systems created within the scope of the Population Services Law No. 5490, notarised copies of identity documents or passports of real persons of foreign nationality, whose documents have been deposited in accordance with this paragraph.

In addition, in the event that the partners of the company with a direct or indirect share of ten percent or more and the partners holding the control are a bank or financial institution established abroad:

  • Samples of decisions taken from authorised bodies regarding operating in Turkey,
  • Consolidated independent audit report for the last year,
  • The document obtained from the competent supervisory authority stating that it is not prohibited from operating in the country where it is established or operates, or that there is no restriction on its activities,
  • Detailed information and documents about the fields of activity, organisational structure, organisational structure in and outside the country where it is established, its activities in international financial markets as specified in its Articles of Association, and, if any, the report prepared by the rating companies and including the predicted rating.

According to Article 15 of the Payment Law, the application should be resulted within 6 months. However, this time period is not definite and may take longer based on complexity of the structure. Also, the CBRT may request additional information and documents, which may extend the period. As per Article 14 of the Payment Law

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