Turkey Digital Wallet Market - Forecasts from 2022 to 2027

Turkey digital wallet market was valued at US$76.345 million in 2020. With rapid urbanization and modernization, the globe is advancing toward digitalization, which enables the audience to work at their convenience. The ongoing digitalization has inclined the usage of the internet. Turkey is among the fastest-growing economies in the Middle East region. In 2020, internet consumption in the nation was 78%, and the figures grew from 45% in 2012. Moreover, the number of individuals having cellular mobile subscriptions reached 97 (per 100 people).

In addition, consumer behavior was positively impacted by the COVID-19 pandemic, which sped up the shift from conventional in-store shopping to online shopping and pick-up in-store, to the point where businesses implemented safer contactless payment services in response to customer demand for such possibilities. As a result, major companies in the nation’s digital wallet market profited from the switch to e-commerce and digital payments from traditional in-person shopping and payment systems, including a notable rise in net new active accounts and transaction volume. Furthermore, digital wallets also solve the security issue of individuals as they have multiple layers of security for digital wallet transactions, and each transaction is protected by the debit/credit card company, app, retail outlet, and the bank that has issued the card.

Increasing initiatives toward cashless and digital payments

Since the digitalization of payment provides convenience and security, the transition toward it seems to be a sound decision. The majority of the country’s population is under the age of 30, making them take up experiments in diverse fields. Some of the nation’s banks like BKM plans to make the country cashless by 2023. Along with that, Turkey is a famous tourist destination and is known for its natural beauty and historic and cultural sites. Booking of tickets, hotels, and other related necessary items is preferred to be done online in order to efficiently manage time. Contactless payments tend to simplify the checkout process also, and it seems to be more convenient for customers who wish to have a hassle-free and faster process.

Market Developments:

Furthermore, the market players are also expanding their horizons through investments, partnerships, and product launches. For instance,

• In November 2021, a TPAY MOBILE FZ-LLC company, Payguru formed an alliance with Iyzico, which is a provider of virtual Point of Sale solutions (POS) in Turkey. Through the partnership, a digital wallet named Pay with lyzico will be launched. The initiative has been taken to improve financial access for consumers who do not own a credit or debit card. This new infrastructure will have limited access to traditional banking, as it will enable people to make digital payments seamlessly even without having a bank account.
• In June 2021, TerraPay and UPT (Universal Payment Transfer) announced their partnership to facilitate automated international remittances in Turkey. Terrapay is a leading global payment infrastructure company. The objective is to build global digital payment highways, interconnecting financial institutions such as banks and mobile wallets across the world.
• In June 2020, a Dubai-based mobile payment enabler, TPAY acquired a 100% share of Payguru, a Turkish payment service provider. With this acquisition, the company wanted to promote mobile payments by using direct carrier billing (DCB), mobile wallet, and mobile money. With this deal, TPAY successfully marked its footprints in Turkey.

Market Segmentation:

By Device

• PC/Laptops
• Smartphones

By Application

• Money Transfer
• Recharge
• Movie Booking
• Food Ordering
• Others