Apr 1, 2022

The prepaid card market (value terms) in Turkey increased at a CAGR of 11.6% during 2017-2021. Over the forecast period of 2022 to 2026, the market is expected to record a CAGR of 13.6%, increasing from US$10.36 billion in 2022 to reach US$17.22 billion by 2026. With the thriving e-commerce market fueled by the COVID-19 outbreak, the Turkish economy saw a transformation in the payment trends. Notably, the Turkish payment market aims to become cashless by 2023. Also, the Turkish financial authorities are taking various initiatives to drive e- payments, such as the national QR code, known as the Turkish QR Code, in August 2020. Strong growth of the Turkish e-commerce market also widened the prepaid card market's growth opportunity The e-commerce market in Turkey recorded strong growth with the rising pandemic and reached new heights in 2021. According to the publisher, the e-commerce sales in Turkey increased more than 65% annually during this period. Moreover, with the increasing awareness and rising usage of contactless payment methods, the publisher expects, with an environment well suited for innovation and entrepreneurship. Additionally, a large young population that is eager to adopt the cashless initiatives, the country will witness a surge in prepaid card adoption in the next four to eight quarters. Ride sharing companies are building partnerships with fintechs to introduce mobile app-based payments With the country adopting cashless initiatives, technology firms are partnering with taxi firms and banking providers to explore a convenient payment method where the taxi drivers will not need any separate point of sale (POS) terminal or any other additional hardware to receive payments. In August 2021, Turkish taxi firm, Taxi 724 piloted a software POS (sPOS) solution provided by Payneer Technology. The technology will enable NFC enabled Android devices to make contactless payment through an app. The company also partnered with Yapi Kredi bank to facilitate consumers. The app will be accompanied by a prepaid card, where the collected money can be transferred and used to withdraw cash from ATMs or making card payments. Digitized transit card has provided momentum to the growth of prepaid cards in Turkey With contactless payments gaining popularity during the pandemic, transit cards are being digitized. For instance, In November 2021, BELBIM AS, one of the subsidiaries of Istanbul Metropolitan Municipality (IBB), created a secure and convenient digital card called Digital Istanbulkart with the renewed mobile application known as Mobil Istanbulkart. This mobile app with the virtual card has features such as password, fingerprint scanning, and face recognition technology. Moreover, the digital card can be used in many areas, from transportation to online shopping together with campaign opportunities. Payguru partnered with Iyzico to launch Direct Carrier Billing In November 2021, Turkey-based mobile payments company, Payguru, partnered with Iyzico, provider of virtual Point of Sale solutions (POS) in Turkey, to launch Direct Carrier Billing (DCB) for digital wallet top-ups. This solution will provide consumers, especially the unbanked and underbanked population, to top up the 'Pay with Iyzico' wallet through DCB. Scope Transaction Value Trend Analysis