Payment Services Overview

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“Law on Payments and Securities Settlement Systems, Payment Services and Electronic Money Institutions” (Law No.6493), which was enacted in 2013, defined for the first time the terms “payment system”, “securities settlement system”, “payment service provider”, “payment institution” and “electronic money institution.” Within the scope of the Law, regulation and supervision responsibility for “payment services”, “payment service providers”, “payment institutions” and “electronic money institutions” was given to the Banking Regulation and Supervision Authority (BRSA) while the regulation and oversight responsibility for “payment systems” and “securities settlement systems” was given to the Central Bank of the Republic of Turkey (CBRT).
The rapid developments in the payments area necessitate this dual structure between the BRSA and the CBRT to be assembled under the CBRT in order to execute the decision making procedure efficiently. This stemmed from the improvements in the information and communication technologies as well as the development of new products and the applications in payments area. Currently, the technological advancements render the ensuring of the uninterrupted operation of the payment systems an indispensable part of price stability and financial stability. In parallel to the needs, the BRSA’s regulation and supervision responsibilities in the payments area were given to the CBRT with the “Law on the Amendments on the Law on Payments Systems and Securities Settlement Systems, Payment Services and Electronic Money Institutions and Some Other Laws” that was published in the Official Gazette on November 22th of 2019. 
With the amendments, in addition to the regulation and oversight responsibilities regarding the payment and securities settlement systems, the CBRT becomes responsible for the regulation and supervision of the payment services and the payment service providers as from January 1st, 2020. 
Within the scope of the Law No.6493, the institutions that are eligible to provide payment services in Turkey are:

  • The banks operating within the scope of the Banking Law No: 5411,
  • Payment Institutions,
  • Electronic Money Institutions,
  • Postal and Telegraph Corporation.

Therefore, the institutions that have not obtained authorization from the BRSA and wish to operate as a payment institution or electronic money institution shall obtain authorization from the CBRT as from January 1st, 2020.