The primary legal framework regulating payment systems and electronic money institutions in Turkey is Law No. 6493, “Law on Payment and Securities Settlement Systems, Payment Services, and Electronic Money Institutions.” This law outlines the legal requirements, licensing process, and operational principles for organizations offering payment services. The Banking Regulation and Supervision Agency (BDDK) serves as the main public authority responsible for regulating and overseeing these organizations.

Any company or entrepreneur wishing to provide payment services must obtain a license from the BDDK. This license is essential for legally offering payment services. The licensing process requires meeting specific conditions and submitting necessary documents during the application.

2.1 Application Process

Payment institutions or electronic money institutions are required to apply to the BDDK for a license. The following are some of the key documents and conditions that must be met:

• Application Form: A form outlining the company’s intention to provide payment services, including its operations and plans.
• Capital Requirement: Proof that the company possesses the minimum required capital (details below).
• Management Team: Documents demonstrating the qualifications and experience of the company’s senior management.
• Technical Infrastructure Report: A detailed report on the technical infrastructure ensuring the security and operation of the payment system.
• Business Plan and Financial Statements: A three-year business plan and financial projections must be submitted to the BDDK.

2.2 Relevant Legislation

In addition to Law No. 6493, the activities of payment systems and electronic money institutions are regulated by the following legislations:

• Law No. 6493: Governing the core regulations of payment services and electronic money institutions.
• Regulation on Payment Services and Electronic Money Institutions: It includes detailed provisions on activities, audits, and licensing processes.

Companies wishing to operate as a payment system or electronic money institution must meet specific capital requirements clearly outlined in the regulations. The capital requirement varies depending on the type and scope of the operation.

• For Payment Institutions: The minimum capital requirement is 2 million Turkish Liras. This amount may increase depending on the scope of services offered and the payment infrastructure to be established.
• For Electronic Money Institutions: Companies authorized to issue electronic money must have a minimum capital of 5 million Turkish Liras. This higher requirement reflects the broader and more secure infrastructure needed for electronic money services.

The capital must be fully paid in cash, and the company’s financial structure must be solid. The BDDK will not accept applications from companies that fail to meet these capital requirements.

One of the most critical aspects of setting up a payment system is security. Payment institutions and electronic money companies operating in Turkey must comply with international security standards such as PCI DSS (Payment Card Industry Data Security Standard). Additionally, the protection of personal data under the Personal Data Protection Law (KVKK) is of significant importance.

4.1 Infrastructure Requirements

Payment institutions must have a strong technical infrastructure that ensures the security and continuity of their services. The BDDK requires companies to submit detailed technical reports showing that they possess the necessary infrastructure. Companies must establish systems capable of monitoring transactions in real-time and addressing any potential security breaches.

4.2 Audit and Reporting

Payment system activities are subject to regular audits by the BDDK. Companies must submit regular reports on their financial condition, transaction volumes, and technical infrastructure. Additionally, the BDDK reviews independent audit reports to ensure compliance with legal regulations.

Payment systems and electronic money institutions in Turkey are subject to tax obligations like other commercial entities. This includes income tax, corporate tax, and value-added tax (VAT). In addition, a certain percentage of each transaction is subject to transaction tax (BSMV).

Entrepreneurs or companies wishing to establish payment systems in Turkey must comply with several legal requirements. The most critical step in this process is obtaining a license from the BDDK. To set up a payment system, companies must meet the minimum capital requirements, establish a secure technical infrastructure, and operate in accordance with BDDK regulations. A legally compliant payment system can provide significant advantages in a rapidly growing e-commerce market.