Is PayPal Available in Turkey? And Your Top Alternatives

PayPal is an online payment platform that facilitates digital transactions across many countries. Individuals and businesses use its services for sending and receiving money and making online purchases. This article clarifies PayPal’s operational status in Turkey and presents alternative payment solutions available in the region.

Current Status of PayPal in Turkey

PayPal is not available for domestic transactions or direct operations within Turkey. Turkish users cannot send or receive money via PayPal within the country, open new accounts, or link Turkish bank accounts to existing international PayPal accounts. All existing accounts held by Turkish users were closed following PayPal’s withdrawal from the market.

Reasons for PayPal’s Withdrawal

PayPal ceased its operations in Turkey on June 6, 2016, due to licensing issues with the Turkish financial regulatory authority, the Banking Regulation and Supervision Agency (BDDK). The BDDK mandated that payment service providers establish local IT infrastructure and store user data within Turkey. This data localization requirement was a point of contention, as PayPal operates on a global platform and was unwilling to maintain separate, localized IT systems for Turkey. Despite efforts to comply, PayPal’s application for a local license was denied because it could not meet the stipulated requirements for data residency and IT system localization.

Alternative Payment Methods for Turkey

Given PayPal’s unavailability, several alternative online payment methods and money transfer services are commonly used in Turkey. Credit and debit cards, particularly Visa and Mastercard, are widely accepted for online and in-store purchases, accounting for a significant portion of e-commerce transactions. Local Turkish card schemes like Troy also provide payment solutions.

Digital wallets are popular, with local options such as BKM Express, Papara, and Paycell for online purchases, money transfers, and bill payments. These digital wallets are integrated with major Turkish banks and support various functionalities, including QR code payments.

For international money transfers, services like Wise (formerly TransferWise) and Western Union offer options for sending and receiving funds to and from Turkey. These platforms allow transfers directly to bank accounts or for cash pickup, supporting various currencies.

Payment gateways such as iyzico and PayU facilitate online transactions for businesses within Turkey, supporting both local and international payment methods. Some cryptocurrency exchanges are active in Turkey for digital asset transactions.