Legal AlertThe Central Bank of the Republic of Turkey published the Guidelines on Associating Business Models Offered in the Payments Area with Payment Service Types.

10 October 2022

The Central Bank of the Republic of Turkey (“CBRT”) stated that the Guidelines on Associating Business Models Offered in the Payments Area with Payment Service Types (“Guidelines”) aim to associate business models that are frequently encountered in the field of payments with the payment services listed in the Law No. 6493 on “Payment and Securities Settlement Systems, Payment Services and Electronic Money Institutions” (“Law”) and to ensure uniformity in terms of compliance with regulations and authorization in practice.

It is stated in the Guidelines that Art. 13/1 of the Law lists,

  • Banks within the scope of Law No. 5411,
  • Electronic money organizations,
  • Payment organizations,
  • Post and Telegraph Organization Incorporated Company

as payment service providers, and that the persons outside this scope are prohibited from providing payment services.

In the Guidelines, transactions falling within the scope of payment services and electronic money issuance activities are explained in detail to ensure uniformity in practice.

According to Art. 12/1 of the Law, said transactions consist of the following:

  • All transactions necessary for the operation of the payment account, including services that allow deposits to and withdrawals from the payment account,
  • A payment transaction by payment card or similar instrument or a direct debit transaction including a one-off one that involves the transfer of funds from payment service user’s payment account with the payment service provider; and a money transfer including a standing order,
  • Issuance or acceptance of the payment instrument,
  • Money transfer,
  • A payment transaction where the sender gives consent for the payment to be made by means of an IT or electronic communication device and the payment is made to an IT or electronic communication operator that acts only as an intermediary between the payment service user and the provider of goods or services,
  • Services for intermediation of invoice payments,
  • Payment order initiation service offered at the request of the payment service user in relation to a payment account at another payment service provider,
  • The service of making consolidated information on one or more payment accounts of the payment service user with payment service providers available online, provided that the consent of the payment service user has been obtained,

Transactions that cannot be considered as payment services are also listed in the Guidelines. Some of the said transactions are as follows:

  • Payment in cash directly to the buyer without the use of an intermediary,
  • Payments made through a commercial agent authorized to negotiatiation or buying and selling of the goods or services on behalf of the sender or recipient,
  • Payment transactions made by collecting and delivering money in cash within the framework of non-profit or charitable activities,
  • Services where cash is given from the recipient to the sender as part of the transaction at the explicit request of the payment service user immediately prior to the execution of the payment transaction resulting from the purchase of goods or services.

Business models in payment services are defined in the Guidelines as follows:

  • Payment Account Management (Payment Account Opening, Deposit, Withdrawal)
  • Money Transfer
  • Virtual POS
  • Physical POS
  • Issuance and Acceptance of Electronic Money (Prepaid Card)
  • Digital Wallet
  • Mobile Payment
  • Intermediation of Mobile Payments
Finally, the Guidelines included a table showing “the Law sections relating to which authorization must be obtained as a minimum within the scope of the business model to be offered.”