The Cards and Payments Industry in Turkey: Emerging Trends and Opportunities to 2019

Turkey’s population grew steadily during the review period, from 73.1 million in 2010 to 76.9 million in 2014, and is expected to reach 80.9 million by 2019.

The economically active population aged 15–64 years accounted for 67.8% of the total population in 2014, and is anticipated to further increase to reach 68.4% in 2019. This is expected to shape consumer demand and provide scope for the usage of payment cards.

Urbanization in Turkey is also growing. The proportion of the urban population grew from 70.7% in 2010 to 72.9% in 2014, with this figure expected to increase further over the forecast period, to reach 75.3% in 2019.

The rapid development of payment cards in Turkey has encouraged leading global banks to expand their business there. This is further supported by the favorable FDI regulations from the Turkish government. Since 2003, the banking sector has been liberalized under Foreign Direct Investment Law No. 4875.

According to the law, any foreign bank is allowed to enter the Turkish card payments sector by setting up wholly owned subsidiaries or branches in the country. The Turkish legal framework offers a level playing field to foreign investors, with limited restrictions.

As of December 2014, the overall Turkish banking industry comprised 49 banks, 32 deposit banks, 13 development and investment banks and four participation banks. There were 19 foreign banks operating in the Turkish banking sector with a presence in retail banking.

Scope

• Detailed insights into payment instruments in the Turkish cards and payments market, including credit transfers, check payments and payment cards

• An examination of Turkey’s key alternative payment instruments.

• An overview of the key regulations governing Turkey's cards and payments industry

• Detailed analysis of strategies adopted by banks and other institutions to market debit and credit cards

• An analysis of the various economic, infrastructural, demographic and business drivers affecting Turkey’s cards and payments industry

• Profiles of the leading banks operational in Turkey's cards and payments industry

• An outline of the current regulatory framework in the industry

• Analysis of marketing strategies used by various banks and other institutions in the Turkish cards and payments market

•Detail on market segmentation and new product launches in the Turkish cards and payments sector

Key Highlights

What new set of regulations was introduced in the Turkish cards and payments market by the Banking Regulation and Supervision Agency (BDDK)? Which problem did this seek to address, and in which segment were these regulations introduced? What occurred in the market as a result of these regulations? Is this result likely to be replicated over the forecast period, to 2019?

What has played a key role in spreading new forms of mobile financial services in Turkey? What related agreement is anticipated to drive contactless payments over the forecast period?

What was launched by the Interbank Card Centre of Turkey (BKM) in 2012? What did this enable customers to do? How is this anticipated to further drive card-based payments in Turkey?

Reasons to buy

• Implement strategic business decisions in each segment of Turkey's cards and payments industry, utilizing GlobalData’s top-level historic and forecast market data.

• Identify key market trends and align strategy with those that provide commercial advantage.

• Understand the competitive dynamics in Turkey's cards and payments industry.

• Assess insights into competitor’s marketing strategies and determine how they have been applied in the various card markets in Turkey.

• Investigate key regulations governing Turkey's cards and payments industry, and ensure effective compliance to avoid unnecessary costs.

Companies mentioned

YapiKredi

Ziraat Bank

İşbank

Garanti Bank

VakifBank

Akbank

Finansbank

DenizBank

Visa

MasterCard

Table of Contents

1 Definitions and Methodology

1.1 Definitions

1.2 Methodology

2 Key Facts and Events

3 Executive Summary

4 Payment Instruments

4.1 Current Payments Environment

4.2 Alternative Payment Instruments

4.2.1 Mobile wallet

4.2.2 BKM Express

4.2.3 PayPal

4.2.4 PayMobile

4.2.5 3pay

4.2.6 PayU

4.2.7 iyzi Payments

4.2.8 Paymentwall

4.2.9 Direct carrier billing

5 Regulations in the Cards and Payments Industry

5.1 Regulatory Framework

5.2 Anti-Money Laundering (AML)

5.3 Foreign Direct Investment (FDI) Regulations

6 Analysis of Cards and Payments Industry Drivers

6.1 Demographic Drivers

6.2 Economic Drivers

6.3 Infrastructure Drivers

6.4 Business Drivers

7 Market Segmentation and New Product Launches

7.1 Market Segmentation and Targeting

7.1.1 Consumer cards

7.1.2 Commercial cards

7.2 New Product Launches

8 Payment Cards

8.1 Payment Cards Analysis

8.1.1 Volume and value of payment card transactions by type

8.1.2 Personal vs commercial cards

9 Debit Cards

9.1 Debit Cards Market Analysis

9.1.1 Debit cards transaction volume and value by channel

9.1.2 Debit cards scheme shares in terms of number of cards in circulation and transaction value

9.1.3 Debit cards issuers’ market shares

9.1.4 Debit cards comparison

10 Credit Cards

10.1 Credit Cards Market Analysis

10.1.1 Credit cards transaction volume and value by channel

10.1.2 Credit cards scheme shares in terms of number of cards in circulation and transaction value

10.1.3 Credit cards issuers’ market share

10.1.4 Credit cards comparison

11 Commercial Cards

11.1 Commercial Cards Market Analysis

11.1.1 Commercial cards comparison

12 Card Fraud Statistics

12.1 Card Fraud Analysis

13 Card Issuers

13.1 Yapi ve Kredi Bankasi AS.

13.2 TC Ziraat Bankası AŞ

13.3 Turkiye İş Bankasi AS

13.4 Turkiye Garanti Bankasi AS

13.5 VakifBank

14 Prepaid Cards

14.1 Prepaid Cards Market Analysis

14.1.1 Prepaid cards comparison

15 Merchant Acquiring

15.1 Merchant Acquiring Market Analysis

16 Appendix

16.1 Tables

16.2 Contact GlobalData

16.3 About GlobalData

16.4 GlobalData’s Services

16.5 Disclaimer

List of Tables

Table 1: Key Definitions

Table 2: Annual Average Exchange Rate

Table 3: Turkey – Key Facts, 2014

Table 4: Regional Benchmarking of Turkish Payment Cards, 2014

Table 5: Turkey – Mode of Entry of Foreign Banks

Table 6: Cards for High-Income Consumers, 2015

Table 7: Cards for Travelers, 2015

Table 8: Cards for Shoppers, 2015

Table 9: Cards for Students and Youth Population, 2015

Table 10: Commercial Cards Comparison and Key Features, 2015

Table 11: Turkey – New Product Launches

Table 12: Turkey – Pay Now, Average Interchange Fees: Intra-Network Transactions (%), 2010–2014

Table 13: Turkey – Pay Now, Average Merchant Service Charge: Domestic Transactions (%), 2010–2019

Table 14: Turkey – Debit Cards Comparison and Key Features, 2014

Table 15: Turkey – Pay Later, Average Interchange Fees: Intra-Network Transactions (%), 2010–2014

Table 16: Turkey – Pay Later, Average Merchant Service Charge: Domestic Transactions (%), 2010–2019

Table 17: Turkey – Gold Credit Cards Comparison and Key Features, 2015

Table 18: Turkey – Premium Credit Cards Comparison and Key Features, 2015

Table 19: Turkey – Commercial Cards Comparison and Key Features, 2015

Table 20: Turkey – Prepaid Cards Comparison and Key Features, 2015

Table 21: Turkey – Payment Instruments Transaction Value (TRY Billion), 2010–2014

Table 22: Turkey – Payment Instruments Transaction Value (US$ Billion), 2010–2014

Table 23: Turkey – Payment Instruments Transaction Volume (Million), 2010–2014

Table 24: Turkey – Number of Payment Cards in Circulation by Type (Million), 2010–2019

Table 25: Turkey – Volume of Payment Card Transactions by Type (Million), 2010–2019

Table 26: Turkey – Value of Payment Card Transactions by Type (TRY Billion), 2010–2019

Table 27: Turkey – Value of Payment Card Transactions by Type (US$ Billion), 2010–2019

Table 28: Turkey – Personal and Commercial Cards Transaction Volume (Million), 2010–2019

Table 29: Turkey – Personal and Commercial Cards Transaction Value (TRY Billion), 2010–2019

Table 30: Turkey – Personal and Commercial Cards Transaction Value (US$ Billion), 2010–2019

Table 31: Turkey – Number of Debit Cards in Circulation (Million), 2010–2019

Table 32: Turkey – Debit Cards Transaction Volume and Frequency by Channel, 2010–2019

Table 33: Turkey – Debit Cards Total and Average Transaction Value by Channel, 2010–2019

Table 34: Turkey – Debit Cards Total and Average Transaction Value by Channel, 2010–2019

Table 35: Turkey – Number of Debit Cards in Circulation By Scheme (Million), 2010–2014

Table 36: Turkey – Debit Cards Transaction Value By Scheme (TRY Billion), 2010–2014

Table 37: Turkey – Debit Cards Transaction Value By Scheme (US$ Billion), 2010–2014

Table 38: Turkey – Debit Cards Transaction Value by Issuer (TRY Billion), 2010–2014

Table 39: Turkey – Debit Cards Transaction Value by Issuer (US$ Billion), 2010–2014

Table 40: Turkey – Number of Credit Cards in Circulation (Million), 2010–2019

Table 41: Turkey – Credit Cards Transaction Volume and Frequency by Channel, 2010–2019

Table 42: Turkey – Credit Cards Total and Average Transaction Value by Channel, 2010–2019

Table 43: Turkey – Credit Cards Total and Average Transaction Value by Channel, 2010–2019

Table 44: Turkey – Number of Credit Cards in Circulation By Scheme (Million), 2010–2014

Table 45: Turkey – Credit Cards Transaction Value By Scheme (TRY Billion), 2010–2014

Table 46: Turkey – Credit Cards Transaction Value By Scheme (US$ Billion), 2010–2014

Table 47: Turkey – Credit Cards Transaction Value By Issuer (TRY Billion), 2010–2014

Table 48: Turkey – Credit Cards Transaction Value By Issuer (US$ Billion), 2010–2014

Table 49: Turkey – Credit Cards Balance Outstanding By Issuer (TRY Billion), 2010–2014

Table 50: Turkey – Credit Cards Balance Outstanding By Issuer (US$ Billion), 2010–2014

Table 51: Turkey – Number of Commercial Cards in Circulation (Thousand), 2010–2019

Table 52: Turkey – Commercial Cards Transaction Value (TRY Billion), 2010–2019

Table 53: Turkey – Commercial Cards Transaction Value (US$ Billion), 2010–2019

Table 54: Turkey – Card Fraud (TRY Million), 2010–2014

Table 55: Turkey – Card Fraud (US$ Million), 2010–2014

Table 56: Turkey – Number of Prepaid Cards in Circulation (Million), 2010–2019

Table 57: Turkey – Prepaid Cards Transaction Value (TRY Million), 2010–2019

Table 58: Turkey – Prepaid Cards Transaction Value (US$ Million), 2010–2019

Table 59: Turkey – Merchant Acquiring Transaction Volume by Card Type (Million), 2010–2019

Table 60: Turkey – Merchant Acquiring Total Transaction Value (TRY Billion), 2010–2019

Table 61: Turkey – Merchant Acquiring Total Transaction Value (US$ Billion), 2010–2019

Table 62: Turkey – Acquirers’ Transaction Value (TRY Billion), 2010–2014

Table 63: Turkey – Acquirers’ Transaction Value (US$ Billion), 2010–2014

Table 64: Turkey – Retail Outlets and Total Merchant Accounts (Thousand), 2010–2019

List of Figures

Figure 1: Turkey – Payment Instruments Shares by Transaction Value (%), 2010 and 2014

Figure 2: Turkey – Payment Instruments Shares by Transaction Volume (%), 2010 and 2014

Figure 3: Turkey – Total Population and Structure, 2014

Figure 4: Turkey – Internet and Mobile Penetration (Users per 100 Inhabitants), 2010–2019

Figure 5: Turkey – Economic Indicators, 2010–2019

Figure 6: Turkey – Number of ATMs, POS Terminals and Deposit Bank Branches, 2010–2019

Figure 7: Turkey – Household Final Consumption Expenditure and Retail Sales, 2010–2014

Figure 8: Turkey – E-Commerce Value (US$ Billion), 2010–2019

Figure 9: Turkey – Outbound and Inbound Trips Volume and Spending, 2010–2019

Figure 10: Turkey – Cards and Payments Industry Segmentation by Card Type, 2015

Figure 11: Turkey – Growth in Payment Cards Transaction Value and Number of Cards in Circulation by Type, 2010–2019

Figure 12: Turkey – Volume and Value of Payment Card Transactions by Type (%), 2010–2019

Figure 13: Turkey – Personal and Commercial Cards, Transaction Volume and Value (%), 2010–2019

Figure 14: Turkey – Growth in Debit Cards Transaction Value and Number of Debit Cards in Circulation, 2010–2019

Figure 15: Turkey – Debit Cards Transaction Volume and Value by Channel, 2010–2019

Figure 16: Turkey – Debit Cards Scheme Shares in Terms of Number of Cards in Circulation and Transaction Value (%), 2014

Figure 17: Turkey – Debit Cards Issuers’ Market Shares in Terms of Transaction Value (%), 2014

Figure 18: Turkey – Growth in Credit Cards Transaction Value and Number of Credit Cards in Circulation, 2010–2019

Figure 19: Turkey – Credit Cards Transaction Volume and Value by Channel, 2010–2019

Figure 20: Turkey – Credit Cards Scheme Shares in Terms of Number of Cards in Circulation and Transaction Value (%), 2014

Figure 21: Turkey – Credit Cards Issuers’ Market Share in Terms of Transaction Value (%), 2014

Figure 22: Turkey – Credit Cards Issuers’ Market Share in Terms of Outstanding Balance (%), 2014

Figure 23: Turkey – Number of Commercial Cards in Circulation and Transaction Value, 2010–2019

Figure 24: Turkey – Shares of Various Types of Card Fraud in Terms of Transaction Value (%), 2010 and 2014

Figure 25: Turkey – Number of Prepaid Cards in Circulation and Transaction Value, 2010–2019

Figure 26: Turkey – Merchant Acquiring Transaction Volume and Value, 2010–2019

Figure 27: Turkey – Merchant Acquirers’ Market Share in Terms of Transaction Value %, 2014

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