Is PayPal Available in Turkey?
Get clear answers on PayPal's availability in Turkey, understand the context of its status, and find viable online payment alternatives.
Online payment platforms are integral to the global digital economy. Users often seek information on the availability of services like PayPal in countries such as Turkey, where local regulations influence market access.
Current Status of PayPal in Turkey
PayPal has not been available for users in Turkey since June 6, 2016. The company ceased operations for Turkish residents due to licensing issues with the Turkish banking authority. Individuals and businesses within Turkey cannot use PayPal to send or receive money for domestic or international transactions.
Reasons for PayPal’s Operational Changes in Turkey
PayPal’s withdrawal from the Turkish market stemmed from its inability to secure a payment license from the Banking Regulation and Supervision Agency (BRSA), Turkey’s financial regulator. The BRSA mandated that PayPal’s information and technology systems, including data centers, be located within Turkey. This requirement aimed to ensure regulatory oversight, facilitate compliance with government and court orders, and enable tax revenue generation from transactions within the country.
PayPal stated it operates a global payments platform across over 200 markets and does not maintain dedicated local technology infrastructure in every country. The company’s global approach to IT systems conflicted with Turkey’s localization demands. Despite discussions with the BRSA, PayPal did not localize its systems, which led to the denial of its license application.
Alternative Online Payment Methods in Turkey
Given PayPal’s absence, numerous alternative online payment methods are widely utilized by consumers and businesses in Turkey. Credit and debit cards, particularly Visa and Mastercard, remain the most popular, accounting for a significant portion of e-commerce transactions. Turkey also has its domestic card scheme, Troy, which is gaining traction.
Digital wallets and local payment systems have also emerged as strong alternatives. BKM Express, an e-wallet operated by BKM (Interbank Card Center of Turkey), is a prominent player, supported by many Turkish banks. Other widely used digital wallets include Papara, Paycell, and iyzico.
These platforms offer functionalities such as online shopping, bill payments, money transfers, and in some cases, even access to financial services beyond basic payments. Furthermore, bank transfers through systems like the Central Bank of the Republic of Turkey’s FAST system provide real-time payment capabilities. International payment solutions like Payoneer and Skrill also serve as options for cross-border transactions for Turkish users.