Does Turkey Use PayPal? Exploring Online Payment Options in Turkey

With a young, tech-savvy population and a growing e-commerce industry, Turkey presents an exciting opportunity for international businesses looking to expand their reach However, navigating the online payment landscape in Turkey can be confusing, especially when it comes to popular international services like PayPal

So does Turkey use PayPal?

The short answer is no – PayPal is not available in Turkey. This is due to some specific regulations and licensing requirements for financial services companies operating in the country.

While digital wallets like PayPal provide convenience for online shopping and transferring money, Turkish consumers have adapted by embracing various homegrown services and localized alternatives.

In this article. we’ll take a closer look at online payments in Turkey including

• Why PayPal is not allowed in Turkey
• The most popular digital payment methods
• Turkish alternatives to PayPal
• Tips for accepting online payments from Turkey

Why Isn’t PayPal Available in Turkey?

Up until 2016, PayPal did operate in Turkey, serving as a popular online payment method. However, that year it suspended services in the country due to new legal requirements imposed by Turkey’s Banking Regulation and Supervision Agency (BDDK).

A 2016 law required all electronic money companies operating in Turkey to partner with a local bank and store user funds within the Turkish banking system, This allows Turkey to more closely monitor flows of money in and out of the country

As an international company, PayPal was unable to comply with these strict regulations and withdrew operations rather than try to transition to this localized model.

While controversial, this law does help prevent foreign monopolization of the Turkish financial market. By requiring localized services, Turkey can ensure its citizens have access to secure digital payment options, even if they don’t have access to traditional banking.

Most Popular Online Payment Methods in Turkey

So with no PayPal, what options do Turkish consumers have for online payments and money transfers? Here are some of the most widely used digital payment methods:

• Credit/Debit Cards – The most popular online payment method, cards make up about 60% of ecommerce transactions. Visa and Mastercard are most commonly accepted.

• Bank Transfers – Allow customers without cards to pay online directly from their bank account. Fast and secure.

• Digital Wallets – Mobile apps like BKM Express, Papara, and Paycell let users store funds to shop and transfer money.

• QR Codes – QR code payments are growing through mobile banking apps. Used at stores or for P2P transfers.

• Cash – Cash on delivery persists as an option for ecommerce orders for unbanked consumers.

• Buy Now, Pay Later – Services like FLO allow installment plans for online purchases through partnerships with merchants.

For in-person purchases, credit/debit cards and cash are still the most widely used methods. But digital payments are on the rise, especially among younger demographics.

Popular Local Alternatives to PayPal in Turkey

Rather than using PayPal, Turkish consumers rely on various homegrown platforms and services that align with the country’s regulations. Here are some of the most popular:

• BKM Express – The most widely used digital wallet app. Lets users store funds, shop online, and transfer money. Integrated with major Turkish banks.

• Papara – Leading mobile payment app for Android and iOS. Allows money transfers via phone number, debit card, or QR code.

• Paycell – Digital wallet linked to mobile numbers. Make purchases online or in stores. Popular for paying bills and money transfers.

• GPay – Digital wallet app by fintech company GarantiPay. Supports mobile shopping and P2P transfers.

• FLO – “Buy Now Pay Later” service partnered with 2000+ merchants. Pay for purchases in installments over time.

These services aim to provide the convenience of PayPal combined with payment functionalities tailored specifically for the Turkish market.

Tips for Accepting Online Payments from Turkey

For international businesses looking to enter the Turkish e-commerce market, accepting online payments requires some special considerations. Here are some tips:

• Offer a localized checkout experience – Allow Turkish customers to pay with familiar methods like bank transfers or major Turkish card brands.

• Provide mobile-friendly payment – Over half of online shopping happens on mobile so ensure a seamless experience.

• Partner with a Turkish payment provider – Work with a local payment processor for access to preferred local payment methods.

• Get a Turkish virtual IBAN – Obtain a virtual IBAN account number to accept bank transfers from Turkish accounts.

• Use a secure global payment platform – A provider like Pay.com can handle Turkish payments with localized support.

• Allow cash on delivery – Have a COD option available for unbanked customers who rely on cash.

The Bottom Line

While services like PayPal provide convenience for online payments and money transfers, Turkey blocks access due to regulations requiring financial platforms to partner with local banks.

Instead, Turkish consumers rely on a variety of homegrown digital payment services and mobile wallet apps tailored to the market. For international merchants, accepting payments from Turkey simply requires getting set up to process transactions through these preferred local methods.