The Republic of Türkiye (Turkey) has experienced a range of economic challenges in recent years, not least the depreciation of its official currency, the lira. But optimism is returning as early signs suggest that investor confidence is on the up.
Despite recent challenges, Türkiye remains a high-middle-income nation with promising prospects, bolstered by a large population and strategic geographical location – acting as a bridge between the East and the West.
Financial Hub: Istanbul
Istanbul (ranked globally 110th) is currently undergoing significant investment, particularly in projects like the Istanbul Financial Centre, aimed at positioning the city as a leading global financial hub.
Key economic development strategy
Turkey Vision 2023
Economic, financial services and fintech overview
Türkiye has experienced remarkable growth in startups, particularly in Istanbul, witnessing the emergence of two decacorns (valued at over $10billion) and four unicorns (valued at over $1billion) by 2020, including notable gametech company Dream Games. A proliferation of accelerator programmes, co-working spaces, and incubation centres further highlights the country’s burgeoning startup ecosystem.
Fintech regulations in Türkiye largely align with EU standards, with its Payment Law resembling the First Payment Services Directive (FPSD). However, Turkey has yet to fully adopt the Second Payment Services Directive.
The country has witnessed organic growth in fintech and related subsectors, partly driven by the depreciation of the Turkish lira – which led to increased popularity of cryptocurrencies despite some setbacks including the closure of crypto houses such as Vebitcoin in 2021.
Türkiye has also made significant progress regarding financial inclusion, with the country now boasting nearly 100 million credit cards, ranking ninth globally for credit card transactions and seventh for credit card ownership. With over two million POS devices, a significant portion now facilitating in-store contactless payments, and more than 90 million active online banking customers, Türkiye demonstrates robust digital financial infrastructure.
Among the prominent fintech companies in Türkiye are Papara, offering payment solutions, Param, the first Turkish electronic money solution, and Moka, a payment service provider. Additionally, Dream Games represents Türkiye’s prowess in the gametech sector.
Timeline of Key fintech milestones
- 2006 – Bank cards and credit card law by Banking Regulation and Supervision Agency (BRSA)
- 2013 – Payment and Securities Settlement Systems, Payment Service and Electronic Money Institutions Law No 6493 went into effect by both BRSA and Central Bank of Republic of Turkiye (CBRT)
- 2019 – First ever Istanbul Fintech Week event to engage the Turkish and wider global fintech community
- 2019 – Law on amendment of law of Regulation on Payment Service and Electronic Money Issuance, Payment Institutions and Electronic Money Institutions and Certain Laws by CBRT (previously under BRSA)
- 2020 – Regulation on the use of QR codes by CBRT
Key statistics in Türkiye
