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Legal Alerts

Comprehensive Amendments to Payment Services and Electronic Money Issuance Legislation

Legal Alerts
Banking & Finance

Recent Developments

The Banking Regulatory and Supervisory Authority (“BRSA“) amended the Regulation on Payment Services, Electronic Money Issuance, Payment Institutions and Electronic Money Institutions (the “Regulation”). The amendments were published and entered into force on October 12, 2018.

What’s New?

  • In accordance with the previous amendments to the Law No. 6493 on Payment and Securities Settlement Systems, Payment Services and Electronic Money Institutions (the “Law“), that enable the Postal and Telegraph Corporation (Posta ve Telgraf Teşkilatı A.Ş.) (“PTT“) to provide payment services and electronic money issuance, the PTT was classified as a payment service provider and electronic money issuer per the Regulation’s definitions. In this regard, the PTT is subject to the provisions related to electronic money issuance, repayment and electronic money retention accounts, as well as the obligation to deliver required documents to the BRSA.
  • The payment institutions and the electronic money institutions (collectively, the “Institutions“) will not be required to be specifically authorized for the collection on behalf of the invoicing institutions under an agreement between them or between the invoicing institutions and the banks to provide invoice payment intermediary services, provided that they procure relevant services from a bank.
  • The BRSA will examine an applicant’s management structure, employees, technical structure, documentation and recording system on-site in order to issue the applicant a payment services and electronic money issuance license.
  • Institutions must obtain the BRSA’s approval to provide payment services that are described in the Law but not indicated on their license application.
  • Electronic money institutions will be entitled to provide supplementary services such as card storage, card data processing, prevention of misuse and fraud, as well as training and consultancy services for payment services or electronic money issuance. Payment institutions will also be entitled to provide the same services except those concerning electronic money issuance. The BRSA can require the maintenance of additional equity for the services described herein or the additional services to be included on the license.
  • Institutions’ agencies are prohibited from providing payment services through sub-agencies such as dealers. Existing sub-agencies must sign an agreement with the Institution to become their agencies before December 31, 2018.
  • Institutions can upload the independent auditor’s report to the BRSA’s database for their year-end financials until May 15th of the following year. The BRSA can extend this deadline upon the relevant Institution’s request.
  • Cash for issuing electronic money through devices such as ATMs or kiosks where users can make related transactions themselves (hizmet noktaları) will be transferred to the electronic money retention account.
  • Institutions providing intermediary services for invoice payment and that are obliged to maintain a TRY 1 million deposit are allowed to maintain such deposit in the form of a lease certificate in addition to cash and government debt security. If this deposit depreciates 10% or more, the relevant Institution must replace the missing amount and ensure the deposit is once again TRY 1 million within 10 days and notify the BRSA accordingly.
  • In payment transactions where the payment service users are not consumers, the payment service provider and service user can agree to waive the obligation to notify each other of any changes pertaining to the framework agreement at least thirty days prior to the effective date of such change to the payment service user by the payment service provider wholly or partially.


The amendments introduced significant changes to payment services and electronic money issuance, particularly on the scope of the Institutions and their sub-agencies’ activities regarding these services and issuances.