The Cards and Payments Industry in Turkey: Emerging Trends and Opportunities to 2020
Turkey’s cards and payments market remains highly competitive and attractive. A wide range of factors, such as successful economic performance, a young population and a well-developed payment infrastructure, make Turkey an appealing market to banks and card issuers. Turkey’s card penetration stands at 2.3 cards per inhabitant - the highest among peers including Poland, Russia, Romania, Ukraine, Kazakhstan and Azerbaijan. The average annual spend per card in the country is higher than for most of its peers.
Cash remains a key part of the overall payment system in Turkey, though with time and increased financial literacy and awareness it is gradually being displaced by payment cards. With various marketing initiatives, such as the Bye Bye Cash campaign conducted by banks and the Interbank Card Center of Turkey (BKM) to create consumer awareness of the benefits of electronic payments, the share of cash-based transactions is expected by fall further over the forecast-period (2016-2020). In contrast to payments at retail outlets, most online payments are made with cards and, increasingly, alternative instruments.
Contactless technology is gradually gaining popularity in Turkey, with the number of contactless payment cards rising from 10.3 Million in 2012 to 29.1 Million in 2016; it is anticipated to rise further to 55 Million by 2020. The rising number of contactless cards and growing number of retailers accepting contactless payments will further drive payment card transaction values and volumes over the forecast period.
The fast-growing e-commerce market is acting as a driver of payment cards market in Turkey. E-commerce registered a review-period (2012-2016) compound annual growth rate (CAGR) of 32.88%, rising from US$7.8 billion (TRY27.9 billion) in 2012 to US$24.3 billion (TRY85.9 billion) in 2016. Conventional instruments, including payment cards, remain the preferred mode of payment for e-commerce, accounting for 85.0% of the total e-commerce transaction value in 2016. However, alternative payments are gaining prominence, with banks, mobile network operators and payment solution providers launching new products.
The report The Cards and Payments Industry in Turkey: Emerging Trends and Opportunities to 2020, report provides top-level market analysis, information and insights into the Turkish cards and payments industry.
Additionally, it includes -
Current and forecast values for each market in the Turkish cards and payments industry, including debit and credit cards.
Detailed insights into payment instruments including credit transfers, checks, and payment cards. It also, includes an overview of the country's key alternative payment instruments.
E-commerce market analysis and payment methods.
Analysis of various market drivers and regulations governing the Turkish cards and payments industry.
Detailed analysis of strategies adopted by banks and other institutions to market debit and credit cards.
Companies mentioned in this report: Ziraat Bank, VakifBank, DenizBank, Isbank, Garanti Bank, Yapı Kredi, Akbank, Finansbank, Visa, Mastercard, American Express, Troy.
BKM introduced a national payment clearing system, Turkey’s Payment Method (Troy), in April 2016 to increase competition in the debit cards market. Troy entered into agreements with all banks to offer Troy-branded debit cards in the country. Troy’s processing fee is lower than its competitors, making it more viable for small retailers to accept cards, increasing overall acceptance.
To increase credit card use in the country, the BRSA relaxed credit card installment payment plans and consumer loan restrictions by increasing the consumer loan maturity limit from 36 to 48 months in 2016. The installment payment period was raised on credit card purchases from nine to 12 months. In February 2014 the BRSA placed limits on credit card use in relation to income, and restrictions on credit card installments for certain products to tackle consumer debt and rising consumer and corporate loans.
Turkish consumer uptake of alternative payments is gaining traction, as both banks and payment service providers launch new products. The latest being the launch of the Yapı Kredi Wallet app by Yapı Kredi in 2016. The service enables registered users to add credit card details onto the wallet and make contactless mobile payments. Mastercard launched its MasterPass digital wallet in Turkey in June 2015, partnering with merchants such as Caffè Nero, Bi Taksi and Getir, which ran promotional campaigns.
Reasons to buy
Make strategic business decisions, using top-level historic and forecast market data, related to the Turkish cards and payments industry and each market within it.
Understand the key market trends and growth opportunities in the Turkish cards and payments industry.
Assess the competitive dynamics in the Turkish cards and payments industry.
Gain insights into marketing strategies used for various card types in Turkey.
Gain insights into key regulations governing the Turkish cards and payments industry.