Turkey has a diverse and dynamic economy, with one of the youngest populations in Europe. This makes it a perfect place for businesses looking to expand in a growing ecommerce market. To do so, though, it’s essential to understand Turkish consumers and what type of payment methods they most prefer.
We’ve laid out the top 5 payment methods in Turkey to help you understand what Turkish customers want.
5 Top Payment Methods in Turkey
1. Credit and Debit cards
Credit and debit cards are the most popular payment methods in Turkey. Statista reports that card payments account for nearly 60% of all ecommerce transactions. That’s a decrease from 80% in 2016, mainly caused by a rise in alternative digital payment methods. Still, JP Morgan reports that this number will remain high, despite these other methods.
While there are more debit cards in Turkey overall, JP Morgan found that Turkish consumers preferred using credit over debit, especially for online purchases. Visa and Mastercard are the most commonly accepted cards, splitting about 96% of the market. Troy is a Turkish-specific card scheme that is also used, though not as widespread as Visa or Mastercard.
Cash is still a popular payment method in Turkey, despite the rise of digital payments. Across all retail, cash transactions account for 42% of all transactions. Even in ecommerce, cash on delivery makes up 7% of transactions, an increase from 3% in 2016.
One of the main reasons for a continued reliance on cash is that Turkey has one of the highest percentages of unbanked individuals. Nearly 30% of the population does not have a bank account. Because of this, cash is a vital part of commerce.
3. Bank Transfers
In Turkey, bank transfers are a widely used payment method due to their security and efficiency for merchants and customers alike. It's estimated that bank transfers account for approximately 11% of online payments, as reported by JP Morgan.
One of the advantages of bank transfers is that they provide a digital payment option for customers who may not have access to credit or debit cards. Additionally, bank transfers offer instant payment and a lower risk of chargebacks or declined payments.
4. Digital Wallets
Digital wallets are becoming increasingly popular in Turkey as a way to make online purchases or transfer money to other users. They account for roughly 11% of all online transactions, up from just 4% in 2017.
Due to banking laws, commonly used international e-wallets like Google Pay, Apple Pay, and PayPal are not available in Turkey. Instead, Turkish consumers use local alternatives like BKM Express, Paycell, and GPay. These are integrated with most major banks in Turkey and make online or in-store purchases simple.
5. QR Codes
In 2020, the Turkish Central Bank introduced national QR codes as a way to increase mobile payments and decrease cash usage. Merchants who accept digital and card payments are now required to have QR infrastructure. While still not as popular as other digital methods, QR codes are expected to explode in popularity in the coming years.
QR codes can be used to make payments at physical stores or for person-to-person payments. The customer simply scans the QR code with their mobile banking app and confirms the payment, which is then processed immediately.
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The Bottom Line
Turkey is an exciting place for businesses, especially in the ecommerce space. As more people begin to shop online, businesses have the chance to break into this new and growing market.
Providing customers with convenient payment options is crucial for enhancing satisfaction and retention. As a business operating in Turkey, it's essential to offer payment solutions that cater to Turkish customers, including credit and debit cards.
Pay.com offers a comprehensive solution for accepting payments from Turkey. With a quick and easy onboarding process, you can get set up in no time. With the options to customize a hosted checkout page or integrate our Pay Components into your existing system using our API, you can tailor the checkout process to fit your needs and experience level.