The Central Bank of the Republic of Türkiye has published a new draft regulation and communiqué governing the activities of payment institutions and electronic money institutions. Long anticipated by the fintech ecosystem, this regulatory update marks the beginning of a new era for the sector and is widely regarded as one of the most significant developments shaping its future.
Comments from Derya Ekemen Fidan, General Manager of Octet Türkiye, regarding the Regulation on Payment Services, Electronic Money Issuance, and Payment Service Providers were featured in the press. Her evaluation is summarized below.
Stronger Capital Requirements and Sectoral Trust
One of the most notable changes introduced by the renewed payment services legislation aims to strengthen trust between companies and sector participants. According to Derya Ekemen Fidan, “With the minimum equity requirement increased by 80 percent to 9 million Turkish Lira within 53 days of the 1 December regulation, only institutions that provide real confidence to their customers will remain in the sector.”
On 1 December 2021, the Central Bank published the Regulation on Payment Services and Electronic Money Issuance and the Communiqué on Information Systems of Payment and Electronic Money Institutions and Data Sharing Services of Payment Service Providers. The regulation introduced significant amendments affecting the fintech industry.
Among the most important updates was the revision of minimum equity requirements according to the nature of services provided. For institutions such as Octet, the minimum equity requirement was increased from 5 million Turkish Lira to 9 million Turkish Lira following the new communiqué published in the Official Gazette on 22 January 2022.
Data Protection and Customer Consent
The regulation places strong emphasis on data protection and customer rights. Article 62 clearly defines the framework for accessing, using, and storing payment related data.
Payment service providers may access, use, and store data related to payment activities only within the authority granted by law and provided that the relevant customer is explicitly informed. Accessing, using, or storing such data for purposes not directly related to payment activities is permitted only with customer consent. If personal data is involved, explicit consent must be obtained in accordance with applicable legislation.
These provisions reinforce transparency, strengthen consumer protection, and enhance trust in digital payment systems.
Safeguarding of Payment Funds
The regulation also introduces stricter safeguards concerning payment funds held by payment service providers. When executing a payment transaction, a payment institution may temporarily hold funds on behalf of a merchant or customer. These funds must be segregated from other accounts and may be used solely for the execution of the relevant payment transaction.
If payment funds are not transferred to the customer by the following business day, they must be secured in a protection account at a bank, where they remain inaccessible to the payment institution until transferred. Additionally, payment institutions are required to maintain collateral of at least 3 million Turkish Lira at the Central Bank, calculated in addition to the base collateral amount determined by customer volume.
These measures significantly enhance financial stability and operational security within the payment services ecosystem.
Licensing and Entry Requirements
The 1 December regulation also introduced application fees for new market entrants, including preliminary application, licensing, and operational authorization fees. Article 33 revised the minimum equity obligations based on the type of payment service offered.
For most payment service providers, the minimum equity requirement was raised from 2 million Turkish Lira to 5 million Turkish Lira. Just 53 days later, with the communiqué published on 22 January 2022, this threshold was further increased to 9 million Turkish Lira.
This rapid increase signals the Central Bank’s intention to ensure that only financially strong and reliable institutions continue operating in the sector.
Octet Express Commitment to Trust and Compliance
Commenting on the developments, Derya Ekemen Fidan stated that the increase in minimum equity requirements demonstrates the Central Bank’s commitment to maintaining a robust and trustworthy fintech ecosystem. She emphasized that Octet Express will continue to provide secure and reliable services to its customers in full compliance with regulatory standards.
