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Amendments to the Law No. 6493 which defines the purpose, roles and responsibilities of payment services pave the way for FinTech in Turkey.
With these developments, Burhan Eliaçık, President of ÖDED (Turkish Payment and Electronic Money Association) while emphasizing on the transference of duties and authority of the Banking Regulation and Supervision Agency to the Central Bank of Turkey, establishment of Union of Payment and Electronic Money Institutions of Turkey and innovations related to payment and payment services coming into our lives says “Our dreams came true. Now the target is to attract investments to our country and to create unicorns. We have strong beliefs that our sector will gain serious momentum and that we will have payment and electronic money institutions with valuations of more than one billion dollars at the end of 2023.”
Payment and Securities Settlement Systems and Regarding Payment Services and Electronic Money Institutions Law on Amending Related Laws Act were accepted by the Grand National Assembly of Turkey (TBMM). Evaluating these important developments ÖDED (Payment and Electronic Money Association) President Burhan Eliaçık, stressed that a new era had begun for Turkey’s payment services.
Compliance with PSD2 will be ensured and open banking activities will be developed
Eliaçık declared that the payment solutions that will make life easier for individuals and institutions will be implemented with the new regulation.
“With the authority defined as payment service initiation and providing of account information, it will be possible to consolidate payment account information online with consenting users and initiate a payment for a payment account at another payment service provider.” he revealed.
“Thus, applications that enable users to query and transfer their balance will come into our lives and this will ensure compliance with the EU’s Payment Services Directive 2 regulation which the sector eagerly looked forward to, and open banking applications will be developed within the framework of the procedures and principles set by the Central Bank of Turkey.”
Gathering under the roof of Central Bank of Turkey
Eliaçık, mentioning the transference of duties and authority related to payment services of the BDDK (Banking Regulation and Supervision Agency) to the Central Bank of Turkey in order to ensure the coordination of the law, and the amendments to Law No. 6493 which defines the purpose, roles and responsibilities of payment services, states “The bilateral regulation and control mechanism established between the Central Bank of Turkey and the BDDK (Banking Regulation and Supervision Agency) will be changed, and the duties and authority will be gathered under one roof”.
Will turn into investment in three months
Eliaçık, underlining that a significant portion of the objectives set out in the 11th Development Plan, which was enacted in 2019, being implemented rapidly before the end of the year says “Our dreams came true. This development is a source of great happiness and pride for the payment services sector”. Burhan Eliaçık states “With this law, while achieving compliance with international regulations and standards, we will rapidly move towards a payment ecosystem where innovative and low-cost products and services become widespread”.
”A period in which international similar practices will rapidly come into our lives and make the financial access spread to the base will begin. We strongly believe that these developments, combined with the existing knowledge and experience of payment services of our country, will turn into investment in a very short time, even within the next 3 months. We believe that the sector will gain serious momentum and that we will have more than one payment and electronic money institutions with valuations of more than one billion dollars at the end of 2023.”
Organizations will be fully integrated into the current financial system
“Payment and electronic money institutions, stating the importance of unity at every opportunity they had, demanded for unity to facilitate the professional activities of the institutions and to ensure the functioning of the system in a healthier manner, and it is realized with these changes” expressed Eliaçık. “With this decision, we have achieved the unity our sector has been waiting for for a long time. This important step will enable full integration of organizations into the existing financial system.” he added.
“On this occasion, we give our never ending thanks to the the Ministry of Treasury and Finance of Turkey, the Central Bank of Turkey, and Banking Regulation and Supervision Agency (BDDK) for not withholding their support for the whole process” Eliaçık finalized.