Turkey Cashless Society by 2023 – Mobile Wallets are the key!

Turkey Cashless Society by 2023:

Have you tried Turkish tea? For a tea addict like me, it was great! And thanks to these fantastic tastings, I got to know Turkey, a country with a rich cultural and gastronomic history that also made the history of its economy. The concept of the stock exchange, commerce, and money originated in Anatolia. This rich heritage has inspired the shopping trends and payment culture in Turkish society. The young population is technically capable and innovative to develop Turkey as an innovation center for payments.

Did you know that Turkey launched a contactless credit card in 2006, launched its first BKM digital wallet in 2012, launched the Troy National Payment Scheme in 2016, and that it would be a cashless company in 2023? Our message today will explore how mobile wallets can help Turkey reach its goal of a cashless society by 2023. Let’s get started –

A look at the Turkish economy: opportunities and challenges

In 2018, the average age in Turkey was 32.5 years old, with internet penetration of almost 65%. Smartphone penetration is almost 50%. Mobile commerce accounts for 30% of the e-commerce market value. The above statistics determine the current economic situation in Turkey. But Turkey has some advantages over other regions to realize its cashless dream.

Some of them are –

1. A young demographic base

2. High literacy rate

3. High smartphone penetration

4. Card numbers too high

5. A native card payment network

6. A collaborative ecosystem of banks, technology, and technology providers

7. Friendly regulators and governments   to enable a digital future

But there are also challenges such as:

an insufficient population

A specific dependent component of customer liquidity

An ambitious deadline for the cashless society

Mobile wallets in Turkey

Turkey occupies a unique position in the European and Asian e-commerce markets, but somehow cannot take advantage of its strategic position. Banks, NBFC, FI, Fintech, brands, and companies must offer attractive mobile apps/solutions that provide individual offers, discounts, and opportunities for people who want to use digital payments. It’s worth mentioning an incident reported to a local businessman during Black Friday on JPM Morgan Global Payment Trends. “

So there is potential for growth; the only thing is to provide valid and useful use cases, and we’ve highlighted a few:

Use case  1 – Establishment of Turkey as a hub using services via mobile devices.

As the country aims to become a cashless economy by 2023, it is an excellent initiative linking Europe, the Middle East, North Africa [MENA], and Asia to innovate and position itself as a hub for fintech. There are two reasons for this with internal technology partners:

Banks and financial institutions can expand their products and offerings with solutions for different markets.

And studies suggest that growth in smartphone penetration, mobile wallet payments, or mobile money purchases can be accepted.

Use Case 2 – Get less technical skills with cell phones

The biggest challenge is to reach children with internet access or less technical skills to achieve the goal of a cashless society. The cell phone is very handy in these cases because it facilitates the tedious process of the banking cycle. Filling out a device with which you can check your account balance, transfer money or pay bills is easy through a digital wallet.

Usage Case  3 – Innovative for Mobile and Web Users

Another high-tech segment of the Turkish population loves social media and is the fourth largest market for Facebook in the world, reports the Reuters Institute. Solutions such as voice payment via mobile wallet or integration of mobile wallets with IoT devices such as Auto, which pays for insurance before the payment date, are some scenarios to attract customers.

Use Case 4 – Mobile financial services for people without a bank

According to Fintechistanbul statistics, 44% of adults, who make up 55% of the adult female population, do not have access to bank accounts. Although banks and partners with Fintech businesses start mobile financial services or banking agents, they can also work with the prepaid card already in use.

[such as Cep-T, Cep-T Neo, and Paycell for card]

you get a mobile wallet where you can put all your bank cards and make payments.

The regulation also aims to enable financial inclusion through the use of mobile wallets. With the change in 2013 enabling electronic money institutions (EMIs) to provide payment services and issue electronic money, it was the government’s attempt to ensure that the bank is one for all. With these EMIs, people can open a mobile wallet as a secure alternative to bank accounts.

Use Case 5 – Get help via mobile wallets

If we look at the statistics in Turkey, almost 1.6 million students, about 3 million families, and various farmers receive state aid in the form of student loans, agricultural loans, and social contributions. The introduction of mobile money will not only make it more convenient for government officials but also make the system more transparent.

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