2.5 Financial Infrastructure

2.5.1 CBRT Payment Systems Statistics

The payment systems developed and operated by the CBRT are the Electronic Funds Transfer System (EFT), the Retail Payment System (RPS), the Electronic Securities Transfer System (ESTS) and the Auction System, along with an instant payment system called the Instant and Continuous Transfer of Funds System (FAST).

The total value of transactions conducted on the EFT System and delivery versus payment transactions conducted via the EFT and ESTS, where funds and securities are transferred simultaneously, was TRY 508.14 trillion in 2024. In 2024, the daily average transaction value on the EFT System was TRY 2.03 trillion. On the EFT System, 2.9 million transactions were conducted in 2024 and an average of 11.6 thousand messages were processed daily. The amount of transactions settled through the EFT System was approximately 78% higher in 2024 compared to the previous year (Chart 2.5.1.1).

The total value of messages processed via the RPS in 2024 was TRY 286.2 trillion. The daily average value of transactions was TRY 1.14 trillion. In 2024, 602.5 million transactions were conducted via the system and the daily average number of messages processed was 2.4 million. The number of settlements carried out via the RPS in 2024 declined by approximately 22.4% compared to 2023 (Chart 2.5.1.2). This decline can be attributed to the activation of the FAST System on January 8, 2021, followed by a gradual increase in the transaction amount limit, which led to a shift in retail payments from the RPS to the FAST System.

The daily average number of messages processed in the Auction System was 806.

The number of participants on the CBRT’s Payment Systems was 64 by the end of 2024.

2.5.2 The Instant and Continuous Transfer of Funds (FAST) System and Statistics of Use

The FAST instant payment system was developed by the CBRT and put into effect on January 8, 2021. The FAST System is one of the major endeavors of the CBRT to modernize Türkiye’s payment systems infrastructure to support innovative business solutions. With the FAST System, which operates 24/7, end-to-end transfers of retail payments are completed within seconds, and the end users are instantly notified.

The FAST transaction amount limit was gradually raised to TRY 100,000 as of April 4, 2024 while the limit for merchant payments using dynamic QR codes was increased to TRY 250,000.

The Easy Addressing System (KOLAS) allows money transfers on the FAST System using telephone numbers, ID numbers, e-mail addresses, passport numbers or tax numbers, removing the need to use the International Bank Account Number (IBAN). The number of individual customers of the KOLAS System was 24.7 million as of December 31, 2024.

The FAST System also allows person-to-person money transfers and merchant payments through the TR QR Code created in accordance with the standards, without necessitating IBAN information.

Thanks to the Security Overlay Service (SIPER), information about the risk of an illegal transaction can be shared between the initiating institution and the receiving institution in all fund transactions, including FAST.

The Request-to-Pay Overlay Service, which allows the payee to request a payment from the payer, was developed and launched in January 2024.

The FAST Escrow Overlay Service, which can also be used in a wide range of business models – buying and selling used cars in particular, was launched on May 31, 2024 with a transaction amount limit of TRY 2 million.

All overlay services are important steps that contribute to the smooth, fast and reliable execution of payments and money transfers anytime, anywhere.

In 2024, the total value of messages processed on the FAST System was TRY 27.49 trillion, corresponding to TRY 75.11 billion per day on average. In 2024, the number of transactions conducted via the system was 4.6 billion while the daily average number of messages processed was 12.6 million. The highest daily transaction volume for 2024 was recorded on November 15, with 25 million transactions (Chart 2.5.2.2).

The System had 42 participants as of December 31, 2024.

2.5.3 Regulations Introduced Pursuant to the Law No. 6493

Publication of the Communiqué on Redetermination of Minimum Own Funds Amounts for Payment and Electronic Money Institutions

The first paragraph of Article 33 bearing the title “Minimum own funds liability and professional indemnity insurance” of the Payment Services Regulation states that the amounts of minimum own funds shall be re-evaluated by the CBRT in January every year, taking into account the annual changes in the price indices published by TURKSTAT.

In this context, as per the “Communiqué on Redetermination of Minimum Own Funds Amounts for Payment and Electronic Money Institutions” published in the Official Gazette No. 32442 dated January 27, 2024, the minimum own funds amounts for payment institutions that exclusively intermediate invoice payments, payment institutions other than those that exclusively provide account information services, and electronic money institutions were set at TRY 10 million, TRY 20 million and TRY 55 million, respectively, effective from June 30, 2024.

Work on the Implementation of the TR QR Code Regulation

The CBRT monitored the payment service providers’ process of building the technical infrastructure for TR QR Code transactions pursuant to the Regulation on the Generation and Use of TR QR Code in Payment Services, and carried out studies in coordination with related stakeholders, the BKM in particular, to spread the use of TR QR Code in payments. As a result of the technical development and expansion work, it has become possible to make card payments with a TR QR Code at 90% of the existing POS machines and to withdraw money with a TR QR Code from almost all ATMs in Türkiye. Meanwhile, the ratio of POS machines allowing for payments with a FAST TR QR Code has reached 19%, which is expected to increase further once the payment service providers activate FAST TR QR Code payments at merchants. To help expand this facility, the following provision of paragraph 4, Article 4 of the Regulation on Payment Services, Electronic Money Issuance, and Payment Service Providers was made applicable to merchant payments with FAST TR QR Code:

“…If the Bank concludes that it is essential to the improvement of the payments area, the condition of receiving the approval and demand of the client for the provision of additional payment services determined by the Bank shall not be sought, provided that there is an existing framework agreement for another payment service between the client and their payment service provider. Before starting to provide the additional payment service in this scope, the client shall be duly informed as per parapraphs 1 and 2 of Article 44, and the additional payment service shall not be provided if the client expresses that they do not want to receive such service.”

Accordingly, the BAT, the TKBB, the Payment and Electronic Money Institutions Association of Türkiye (TÖDEB), and the Turkish Postal and Telegraph Corporation (PTT) were informed with a written notification dated May 2, 2024 that it is expected to swiftly expand the practice of merchant payments with FAST TR QR Codes, technical development of which was completed by FAST System participants, pursuant to the related provision.

In addition, the inspections made as part of the studies to expand the use of TR QR code revealed a significant number of shortcomings in building the necessary infrastructure for TR QR code payments at merchants, particularly in business affairs concerning virtual POS services offered by payment service providers to merchants for the acceptance of payment cards, as compared to physical business places. Therefore, the BAT, the TKBB, the TÖDEB and the PTT were sent a written notification on May 9, 2024 stating that ensuring urgent compliance with the TR QR Code Regulation is expected in all kinds of payment services provided by payment service providers, particularly in virtual POS services they provide to merchants for the acceptance of payment cards.

Directive on the Corporate Management of Payment and Electronic Money Institutions

Payment and electronic money institutions were sent a directive on October 4, 2024 stipulating that these institutions create a “Corporate Management” link on the main pages of their websites; add tabs under this link to share information such as the photo CVs of Executive Committee members, General Managers, Deputy General Managers, and managers of Risk Management and Internal Control units, the company’s shareholding structure showing the shareholders, amount of paid-in capital, trade name, address and contact information as well as independent audit reports on annual financial statements and annual reports dating back to 2020; and ensure that these links and tabs are easily accessible, comprehensible, accurate and updated.

Directive on the Update of Quarterly, Semi-Annual and Annual Notification Forms As Part of the New Form Package

With a directive dated September 5, 2024, the content and report notification dates of forms on various subjects were updated upon completion of the CBRT’s studies to update the form package on data oversight composed of 12 forms reported to the CBRT by the institutions.

Amendment of the Payment Services Regulation as well as the Communiqué on Information Systems of Payment and Electronic Money Institutions and Data Sharing Services of Payment Service Providers in the Field of Payment Services

Pursuant to sentence three, paragraph nine, Provisional Article 1 of the Regulation on Payment Services, Electronic Money Issuance, and Payment Service Providers (Payment Services Regulation) and sentence three, paragraph two, Provisional Article 1 of the Communiqué on Information Systems of Payment and Electronic Money Institutions and Data Sharing Services of Payment Service Providers in the Field of Payment Services (Payment Services Communiqué), amendments were made to extend the deadline for the obligations to be fulfilled by “all other payment service providers” with a payment account as per paragraph five, Article 59 of the Payment Services Regulation and paragraph one, Article 24 of the Payment Services Communiqué to March 31, 2025, and to extend the compliance dates specified in digital wallet services-related paragraph 19, Provisional Article 1 of the Payment Services Regulation to April 7, 2025. Accordingly, the relevant amendments in the Payment Services Regulation and Payment Services Communiqué took effect upon their publication on the Official Gazette No. 32676 dated September 28, 2024.

Work on the Open Banking Gateway (GEÇİT) Infrastructure of Data Sharing Services in the Field of Payments (DSSP)

The first paragraph of Article 12 of the Law No. 6493 was amended on November 12, 2019 to include the payment initiation service (subparagraph f) and the service of presenting consolidated information regarding the payment account on online platforms (subparagraph g), so that these services, also called Data Sharing Services in the Field of Payments (DSSP), were defined as payment services within the scope of the Law.

Meanwhile, in view of the conditions and needs of our country, a technical service provider-oriented application architecture was designed to enable fast integration of stakeholders as well as an efficient and effective experience of data sharing in the field of payment services. Accordingly, the BKM API (Application Programming Interface) Gateway (GEÇİT), developed by the BKM with entirely domestic human and technical resources, was assigned as a common DSSP infrastructure with the BKM as the technical service provider. The GEÇİT was made operational on December 1, 2022, and banks that successfully completed their tests and technical certifications started to serve as Account Servicing Payment Service Providers (ASPSPs) through the ‘GEÇİT’² . A total of 25 payment service providers, composed of 24 banks and one electronic money institution, have completed their technical certifications, and now serve as ASPSPs through the GEÇİT. In addition to their ASPSP role, banks can also integrate with the system as Authorized Third Party Payment Service Providers (TPPs) if they want, pursuant to first paragraph of Article 13 of the Law No. 6493. On the other hand, unlike other payment service providers, banks do not have to get an operating license from the CBRT as they are subject to the Banking Law No. 5411. Currently, 19 banks serve as TPPs.

If the existing payment and electronic money institutions want to serve as TPPs, they should get a license for expansion of activities in addition to the technical certification of the BKM pursuant to subparagraphs (f) and (g), paragraph one of Article 12 of the Law No. 6493, while other institutions (that are not payment institutions) should get an operating license. Accordingly, eight non-bank payment service providers successfully completed their technical certification and license procedures, and have integrated with the GEÇİT infrastructure as TPPs. Including the banks that have become TPPs, the number of TPPs has reached 27. On the other hand, procedures for some institutions to become TPPs continue. Participants in the production environment (ASPSPs and TPPs) and participants that completed the BKM Technical Certification processes are listed on the website built for the DSSP³ .

To ensure safe completion of regulatory compliance studies by payment service providers as well as smooth conclusion of the related technical and operational work, and in view of the sector’s demands, the transition period deadline was postponed to March 31, 2025 for payment service providers holding a payment account and offering direct online access to their customers, based on the latest amendments to the secondary regulations published in the Official Gazette No. 32676 dated September 28, 2024. On the other hand, the transition period deadline was kept unchanged as December 31, 2025 for payment service providers that do not offer direct online access to their customers for the payment accounts they hold.

Different from the first version 1.0.2, the currently operational 1.1.0 version of the DSSP API Standard includes the Adding a Credit Card to the Digital Wallet, the Event Reporting Services, and Decoupled Strong Customer Authentication flows. In addition to the improvements in the existing functions, studies continue for Future-Dated Payments, Recurring Payments, Card Info and Movements, and inclusion of ATMs in the Standard as a transaction channel. These new features will become operational with the launch of the 2.0.0 version.

² https://www.tcmb.gov.tr/wps/wcm/connect/EN/TCMB+EN/Main+Menu/Announcements/Press+Releases/2022/ANO2022-48
³ https://bkm.com.tr/urunler-ve-hizmetler/odeme-hizmetleri-veri-paylasim-servisleri/ (in Turkish)

2.5.4 Licenses Regarding the Activities of Payment and Securities Settlement Systems

Number of Payment and Securities Settlement Systems Operating in Türkiye

As of December 31, 2024, there were eight payment systems and four securities settlement systems operating in Türkiye pursuant to the Law No. 6493.

2.5.5 Licenses Regarding the Activities of Payment and Electronic Money Institutions

Operating License

• Operating license applications of eight companies were approved and published in the Official Gazette.

Expansion of Activities

• Seven institutions’ applications for expansion of activities were approved and published in the Official Gazette.

Transfer of Share

• Applications from five institutions for transfer of shares were approved.

Suspension of Operating License

• One institution’s operating license was suspended.

Revocation of Operating License

• One institution’s operating license was revoked.

Rescission of the Decision to Revoke an Operating License

• The decision to revoke the operating license of one institution was rescinded.

External Service Providers That Were Granted Eligibility to Provide Community Cloud Service

As per paragraph seven, Article 16 of the Communiqué on Information Systems of Payment and Electronic Money Institutions and Data Sharing Services of Payment Service Providers in the Field of Payment Services, one external service provider was granted eligibility to provide community cloud service to payment and electronic money institutions. Thus, the number of eligible external service providers totaled seven.

In 2024, 20 more institutions started receiving community cloud service from eligible external service providers.

Number of Payment and Electronic Money Institutions Operating in Türkiye

As of December 31, 2024, there were 26 payment institutions and 63 electronic money institutions operating in Türkiye pursuant to the Law No. 6493.

2.5.6 Administrative Sanctions Imposed on Payment and Electronic Money Institutions

Following the oversight and supervision activities carried out at institutions in 2024 , 55 institutions were charged with administrative fines amounting to TRY 160.3 million in total and 16 institutions received a warning pursuant to Article 27 of the Law No. 6493 titled “Violation of regulations and decisions”.