Recent Legal Developments On Payment Systems And Electronic Money Sector In Turkey

Payment systems started playing a significant role in our lives. People have started using non-cash payment methods in their daily commercial and financial transactions by means of various payment applications created in line with the developing technology. Variation of payment instruments (namely cellphones or similar personalized instruments) and increase in the number non-bank financial intermediary institutions involved in payment systems and electronic money sector have created a need to form a legal basis for this sector.

The Law on Payment and Security Settlement Systems, Payment Services and Electronic Money Institutions (the "Law") has entered into force on 27 June 2013. The Law governs the principles and requirements for setting up securities and payment settlement systems¹, payment systems and payment services, as well as establishment and licensing of payment institutions and electronic money institutions (collectively the "Institutions"). The Law also