Payment Gateways in Turkey

Payment Gateways and Digital Wallets in Turkish E-commerce: What Foreign Sellers Should Know

As Turkey’s e-commerce sector continues its rapid expansion, one area that often puzzles foreign entrepreneurs is the local payment solutions in Turkey. While setting up an online store or selling through platforms like Amazon Turkey is relatively straightforward, navigating Turkey’s unique ecosystem of payment gateways and digital wallets can be a bit more complex.

In this article, we’ll explore how Turkish consumers prefer to pay, the leading payment service providers, and what foreign sellers need to know to operate smoothly in this market.

Why Payment Matters More Than You Think

In many developed markets, credit cards and global gateways like PayPal dominate the online checkout experience. In Turkey, however, the situation is different. A combination of regulatory constraints, local preferences, and innovative fintech solutions has shaped a unique landscape.

Understanding this local payment culture is not just a technical matter—it’s a vital part of increasing your conversion rates and reducing cart abandonment. If your online store doesn’t offer the right payment options, Turkish consumers are unlikely to complete their purchase.

PayPal Is Not an Option—So What Is?

One of the first surprises for many foreign entrepreneurs is that PayPal is not available  as a payment solutions in Turkey. The platform withdrew from the Turkish market in 2016 due to licensing issues, and it has yet to return. This leaves a significant gap that has since been filled by local alternatives.

Leading Turkish payment gateways include:

Iyzico (now owned by PayU)

PayTR

Param

Shopier

Papara (especially popular with Gen Z)

FAST system (real-time payments through Turkish banks)

Each of these platforms provides local language dashboards and settlement in Turkish lira, and some also support foreign currency transactions.

Integration and Compliance

If you’re operating your own e-commerce website, integrating with a Turkish payment gateway will usually require a registered company in Turkey. This is because these providers must perform Know Your Customer (KYC) and Anti-Money Laundering (AML) checks as per Turkish banking regulations.

Not sure how to start a business in Turkey? Here’s a step-by-step guide to company formation in Turkey, including all the legal and tax procedures you need to know before you can access local financial systems.

In addition, if you’re unfamiliar with local financial compliance, contracts, or licensing procedures, it’s highly advisable to work with an English speaking lawyer in Turkey. Local legal professionals can help ensure your payment infrastructure is both effective and compliant.

Consumer Preferences: Installments and Digital Wallets

Turkish consumers have a strong preference for installment payments, often offered through credit card arrangements. If your payment gateway does not support these, you may miss out on a large portion of your target audience.

Furthermore, digital wallets like Papara, Tosla, and PeP have seen widespread adoption, especially among younger shoppers. They offer mobile-first payment options and are often used for online gaming, social media spending, and e-commerce.

Offering compatibility with these digital wallets can help build trust and accessibility—especially for mobile-heavy shoppers in Turkey’s urban centers.

Selling on Marketplaces? Here’s What You Need to Know

If you’re selling via Amazon Turkey, Trendyol, or Hepsiburada, payment processing is handled by the platform. However, you still need a Turkish bank account to receive payouts. This typically requires a local company setup in Turkey or a personal presence in Turkey.

We break this down in our post on You Do Not Need To Be Turkish to Be a Seller in Amazon Turkey, where we explain the options available to foreign entrepreneurs who want to enter Turkish marketplaces without major hurdles.

 

FX and Settlement: Getting Your Money Out

One of the main concerns for foreign sellers  in the scope of payment solutions in Turkey is: “How do I get paid in foreign currency?”

Most Turkish payment gateways settle in Turkish Lira (TRY), which means you’ll need to deal with foreign exchange conversion. The key here is to find a payment processor or local bank that offers competitive exchange rates and low transfer fees to your country.

Some companies use multi-currency banking solutions or EMI-licensed fintechs to manage these transfers more efficiently. Partnering with a lawyer can help you negotiate service contracts with providers and avoid hidden fees. For more information on

 

Security and Compliance Trends

As Turkey continues to modernize its financial sector, there is a growing emphasis on cybersecurity, data protection (KVKK), and consumer protection laws. E-commerce sites are expected to implement 3D Secure payment verification and comply with local data privacy requirements.

This is another area where working with a qualified English speaking lawyer in Turkey is vital to ensure your business stays compliant and avoids fines or account restrictions.

 

Future Trends: Open Banking and Crypto

Turkey has already launched its FAST (Instant Payment System) and is working on developing open banking frameworks through the Turkish Central Bank. This could open the door to smoother international integrations in the near future.

Crypto adoption is also on the rise, though it remains unregulated for payment purposes as of now. However, regulatory changes are expected that may allow for certain blockchain-based payments in e-commerce. For more information on Cryptocurrency Licensing in Turkey please read our article.

Also, if you reach this article as a potential investor in fintech sector please read our article on Fintech Company Registration in Turkey.

Conclusion: Think Local, Act Global

If you’re a foreign entrepreneur planning to tap into Turkey’s e-commerce potential, understanding the local payment ecosystem is just as important as having great products. By offering trusted and familiar payment methods, you can earn customer trust and compete with well-established local brands.

Whether you’re building your own store or selling on a marketplace, setting up a local company and accessing trusted legal and financial professionals will lay the groundwork for success.

And don’t forget to check out our full E-commerce in Turkey: The Guide for Foreign Entrepreneurs, which covers everything from market entry to customer service.