Turkey’s payments ecosystem lives at the intersection of traditional commerce and emerging fintech innovations. While many customers in Turkey still prefer cash, digital payment methods are gaining strength. In 2023, more than half of all point-of-sale (POS) transactions were made using cards.

As digital literacy increases in Turkey, so does the adoption of digital wallets and localized payment solutions such as BKM Express, a digital wallet service from the Interbank Card Center (BKM). This trend corresponds to the growth of ecommerce: Turkey’s ecommerce revenue is projected to reach $31.28 billion USD in 2025.

Turkey’s financial architecture consists of a mix of established banking institutions and agile fintech startups. Backed by regulations that adapt to a changing market, Turkey’s payments ecosystem displays resilience amid global economic shifts.

Below, we’ll explain what businesses that plan on expanding into Turkey should consider, including:

• Accommodating local payment preferences
  
• Staying on top of currency fluctuation and regulatory changes
  
• Implementing strong digital security measures
  

The state of the market

While cash remains an important piece of Turkey’s complex payment landscape, technology, consumer preference, and regulatory efforts are creating a more digital financial future. These trends offer valuable insight into the changing face of Turkey’s payment habits.

Turkey’s financial and payment systems are heavily regulated, with a focus on consumer protection, transparency, and stability. One key regulation is Law No. 6493, the Law on Payment and Securities Settlement Systems, Payment Services, and Electronic Money Institutions, which came into effect in 2013. This law provides a comprehensive structure for electronic money institutions, payment institutions, and payment and securities settlement systems that keeps them in line with international best practices. The government has also played a major role in boosting financial inclusion, reducing the shadow economy (i.e., undocumented, unregulated work), and combating the movement of illicit funds through regulatory action. One example is the push for registered POS machines, which help authorities track transactions and reduce the possibility of tax evasion.

The Central Bank of the Republic of Turkey (CBRT) leads Turkey’s monetary policies. With foreign exchange reserves that are reported to be over $90.9 billion USD in 2025, the CBRT plays an integral role in shaping policy and supervising the banking sector. The Banking Regulation and Supervision Agency (BRSA) is another key player and focuses on the stability and trustworthiness of the financial system. Together with the Treasury and Finance Ministry, these agencies create a supportive environment for domestic and foreign financial operations.

In 2021, BRSA introduced new regulations for payment and electronic money institutions, to create a more structured and safe environment for electronic money and payment services. These regulations have improved the confidence of customers and businesses in digital payments.

Payment methods

Customers in Turkey rely on many payment methods that are used around the world. Here’s a closer look at preferred payment methods in the country.

Current usage

Turkey’s payment ecosystem contains a mix of traditional and contemporary methods. Credit cards are widely accepted in Turkey’s bustling city malls, local bazaars, and online marketplaces. According to the CBRT, Turkish customers spent $420 billion USD in 2024 using cards—a year-over-year increase of 86%. Widespread internet access has driven the surge in online shopping and online card payments. In 2023, almost 65% of the population had used the internet to purchase a product or service.

While credit cards remain popular for both in-store and online transactions, digital wallets and mobile payments are gaining momentum. For instance, a 2019 survey found that, of the respondents from Turkey, 65% used mobile payments. This shows a clear shift toward modern payment practices.

Contactless payments have become increasingly popular in Turkey, as well. According to CBRT data, only 2 million contactless transactions occurred monthly in 2015. By 2024, that number had grown to 1 billion. One popular mobile contactless payment method is TROY, a national program operated by BKM, which issued more than 2 million cards in its first year.

The growth of mobile payments in Turkey comes from a combination of technological advancements and shifts in consumer preferences. The use of digital wallets, for instance, grew from less than 5% in 2017 to more than 10% in 2023. Turkish banking laws do not allow for popular international digital wallets such as PayPal, Apple Pay, or Google Pay to operate in the country. Instead, residents use homegrown solutions such as Paycell and BKM Express, which are integrated with many of the major banks.

Popular B2C payment methods in Turkey

• Credit cards
  
• Debit cards
  
• Cash
  

Popular B2B payment methods in Turkey

• Credit cards
  
• Contactless payments (e.g., TROY)
  
• Bank transfers
  

Emerging trends

Turkey’s regulatory framework has adapted in response to evolving payment methods and preferences. The BRSA has implemented multiple regulations in recent years that focus on digital payment systems, electronic money, and payment institutions. While these changes should result in a more effective system, businesses often find themselves needing to quickly adapt their payment infrastructure as new regulations take hold.

As more people in Turkey embrace technology in finance, the country has experienced a shift from cash to electronic payment systems. The adoption of POS terminals, for instance, has seen steady growth. There were more than 3 million POS terminals in Turkey in 2023, which signals a deep penetration of electronic payment infrastructure.

Mobile banking and payments have also seen a large uptick, with the total transaction value for the digital payments market projected to reach more than $20 trillion USD in 2025. This trend is fueled both by increasing smartphone penetration and the banking sector’s active push for digital solutions. QR code payments, which found increased acceptance during the COVID-19 pandemic, have also helped move customers away from cash.

Ease and friction of entry

Navigating the Turkish payment market demands a blend of cultural understanding and technological integration. Here’s what businesses should know.

Taxes

Value-added tax (VAT) affects customers and businesses in Turkey. A standard VAT rate of 20% applies to most goods and services, though reduced rates of 10% and 1% exist for specific items and categories such as food and medicine. While customers feel the immediate effect of VAT in their purchases, businesses are responsible for collecting and forwarding this tax to the government. Businesses can face strict penalties if they fail to comply with VAT collection or remittance.

Chargebacks and disputes

Turkey’s chargeback and dispute processes reflect its dedication to consumer protection and desire to align with European standards. For businesses, this environment makes it especially important to take proactive measures that mitigate potential disputes and maintain transaction integrity. Turkey has a Consumer Protection Law that emphasizes safeguarding customer rights. Businesses should make sure they are well-versed in the law and its mandates regarding chargebacks and disputes.

The BKM plays a central role in Turkey’s processes for handling chargebacks. Established through a partnership of Turkish banks, the company sets standards for card payments and operates a centralized chargeback system to streamline the dispute process, making it more efficient for businesses and customers.

While Turkey is not a member of the European Union (EU), the country’s laws and regulations match EU standards in many areas, including how it handles chargebacks and disputes. Similar to European regulations, Turkey’s regulations are more favorable to customers, and businesses bear the responsibility of proving the authenticity of transactions, especially those that are unauthorized. Businesses in Turkey often have a greater responsibility to authenticate transactions and maintain relevant records compared with businesses in the US.

International payments

Turkey’s payment market reflects its geographical position, vibrant trading relationships, and interest in technology. Here are some of the forces that shape international payments in Turkey.

• Currency conversion
  With a growing economy and an expanding digital footprint, Turkey is still adapting its currency conversion services, with the goal of catering to local and global needs. Many travelers in Turkey choose to convert their home currency to the Turkish lira (TRY). The exchange rate markups typically hover between 1% and 3% over the interbank rate. Customers might also have to pay a flat fee, often falling within the range of 10 to 30 TRY. Some ATMs in Turkey give users the option to withdraw in foreign currencies, but there is usually an exchange rate markup. There are also a number of third-party currency conversion solutions, including iPara and PayU Turkey.
  
• Multicurrency features for businesses
  For businesses that cater to an international audience, multicurrency features are an important tool. Conversion rates are typically determined at the POS through a business’s bank accounts, and fees associated with this service usually range from 1% to 3%. Depending on the business’s preference, this fee might be absorbed by the business or passed along to the customer.
  
• The role of the Central Bank
  The CBRT is the main regulatory body overseeing currency operations. Their policies and interventions can influence currency conversion rates and practices. Turkey has implemented regulations that advocate for transparency in conversion rates and fees. Financial establishments, such as banks and payment providers, must disclose all costs linked to currency conversion, including service fees and any markup over the interbank rate.
  

Security and privacy

Turkey’s approach to payment security, compliance, and regulation reflects its dedication to creating a stable and protected financial industry. Here’s a closer look at security measures and privacy requirements in Turkey:

• Data protection laws
  The Personal Data Protection Law in Turkey is similar to the GDPR in the EU. It governs the protection of personal data and ensures businesses have an individual’s consent before collecting or processing their personal data. The Personal Data Protection Authority (KVKK) oversees and enforces this regulation, holding organizations accountable for breaches and noncompliance.
  
• Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF)
  Turkey adheres to international standards around AML and CTF regulations, and the Financial Crimes Investigation Board (MASAK) is responsible for enforcing them. Financial institutions are obligated to report suspicious transactions to MASAK, which conducts investigations to prevent illicit financial activities.
  
• Payment and Security Systems Settlement Law
  This law addresses the principles and procedures related to payment and security systems, payment services, and electronic money institutions in Turkey. Its purpose is to enhance transparency and protect the rights and interests of parties in electronic payment services.
  
• Cybersecurity in the banking sector
  As Turkey’s digital transformation gains traction, cybersecurity remains at the forefront of the banking sector’s concerns. The Information and Communication Technologies Authority (ICTA) sets the standards for cybersecurity, and banks and payment providers implement advanced encryption and security measures to guard against cyber threats.
  

Key success factors

Turkey’s payments market offers a number of potential avenues for businesses operating in the country. In an effort to maximize your successful entry to the market, there are some factors to consider. These include:

• Building trust in digital payments
  Despite the global shift toward digital payments, many customers in Turkey still prefer cash. A 2021 payment diary survey conducted by the CBRT found that participants used cash for 89% of daily transactions during the observed period. This can pose challenges for businesses that want to promote digital transactions, because it demands that businesses maintain and support both traditional and modern payment methods.
  
• Understanding the nuances of cross-border transactions
  Turkey’s geographical position and diverse trading relationships mean the country sees a high volume of cross-border transactions. As the trade volume with countries such as Germany and Russia grows, so do the complications. Financial institutions and businesses must remain compliant with an ever-growing list of regulations, tariffs, and trade agreements—especially those that affect how they handle payment transactions.
  
• Investing in robust security measures
  Cybersecurity issues are a point of concern for Turkey. According to a 2021 report from the NATO Cooperative Cyber Defence Centre of Excellence, there were approximately 136,000 cyberattacks in Turkey in 2019. This put Turkish financial institutions on alert, since the payment sector is a frequent target.
  
• Studying the landscape
  Turkey’s payment systems have been undergoing a digital transformation, with mobile banking and digital wallets becoming increasingly popular. Many of these digital options, such as BKM Express, now include features for currency conversion. This development has made it easier for customers and businesses to handle multiple currencies, further integrating Turkey into the global financial system.
  

Key takeaways

While Turkey is growing as a financial hub, businesses still grapple with challenges in its payment market. Here are strategies that businesses can follow when entering the Turkish payment market.

Cater to local payment methods

• Consider offering expanded payment options
  The rise of digital wallets and local payment solutions indicate a diversifying payment ecosystem. Incorporating these payment options can resonate with a broader customer base, especially younger, tech-savvy customers.
  
• Accommodate credit cards—and cash
  The majority of customers in Turkey still use cash alongside credit cards. In 2024, 50% of payments in Turkey were made with cards, while 30% were made using cash. In light of this, businesses should integrate systems that combine both digital and traditional payment methods.
  
• Localize your payment interfaces
  Localizing your payment interface to include the Turkish language can enhance the user experience and build trust with customers.
  

Plan for currency fluctuations and regulatory shifts

• Integrate dynamic currency conversion (DCC) systems
  Fluctuations in the Turkish lira have been a consistent concern. To address this, businesses can integrate DCC systems, which allow customers to view prices in both Turkish lira and foreign currencies, and provide real-time clarity on currency conversion rates. This is especially helpful for tourists and expatriates.
  
• Track regulatory shifts
  Businesses in Turkey need to stay informed about the BRSA’s updates to regulations. Staying compliant ensures smoother operations and also signals to customers that transactions are backed by up-to-date standards.
  
• Know the potential impact of currency volatility
  Turkey has faced severe fluctuations in its local currency, the Turkish Lira. These unpredictable shifts affect domestic and cross-border transactions. In an extreme case, in March 2025, the Turkish lira fell to a record low after a political scandal, ultimately closing at 37.665 per US dollar. This volatility requires businesses—especially those involved in international trade—to carefully plan and monitor for further changes.
  

Make security a central tenet

• Mobile payments
  Mobile payments in Turkey predominantly rely on near-field communication (NFC) technology and QR codes. Two-factor authentication (2FA) via biometric scans or PIN entry is often required for security.
  
• Electronic fund transfer systems and card payments
  The CBRT oversees and regulates the infrastructure of electronic fund transfers. The BKM establishes standards for card payments, focusing on improving card security and promoting electronic payments in the country.
  
• Payment service providers
  Turkey has seen an increase in third-party payment providers. Companies such as iyzico and PayU provide innovative payment solutions for Turkish businesses and customers, and they operate under regulations set by the BRSA and ICTA to maintain high security standards and protect user data.