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REPORT ON THE STATE OF FINTECH ECOSYSTEM IN TÜRKİYE

The Report on The State of Fintech Ecosystem in Türkiye (“Report”) prepared by the Presidency of the Republic of Türkiye Finance Office (“Finance Office”)was published on the official website of the Finance Office on 17 February 2025.

The Report explains in detail the regulations implemented in Türkiye’s fintech ecosystem in recent years and have contributed to the sector's development.

According to the Report;

A) GENERAL OVERVIEW

  • Fintech initiatives shaped by innovations in software-based payment systems and mobile banking have achieved rapid growth momentum by offering more efficient, user-friendly, and cost-effective solutions compared to traditional financial institutions.
  • While global fintech investments remained at low levels in 2024, the Turkish Fintech Ecosystem reached its highest investment value to date. According to publicly disclosed data, investments in Türkiye’s fintech sector reached 194 million US dollars by the end of 2024.
  • The current acquisition trend is expected to continue in 2025. As a result of these developments, new Turkish fintech companies capable of competing in the international market, as well as potential "Turcorn" candidates, are anticipated to emerge.

B) THE TURKISH FINTECH ECOSYSTEM

  • In 2024, Türkiye’s fintech sector shows robust growth due to rapid digital transformation and a youthful population.
  • Significant developments have been observed in areas such as payment systems, blockchain, and banking technologies in previous years, but in 2024, the “Stock Exchange and Investment” pillar took center stage.
  • In 2024, 901 fintech initiatives have been recorded, comprising 19 fintechs founded in 2024 and 731 remaining active.

        

  • By the end of 2024, the number of licensed payment and electronic money institutions, which serve as the foundation of the digital payment infrastructure, has reached 89.
  • By the end of 2024, Türkiye had a diverse range of fintech initiatives. These included 283 payment technology initiatives, 120 banking technology initiatives, and 107 blockchain and crypto asset initiatives. The breadth and depth of these initiatives are a testament to the vibrant fintech industry in Türkiye.

Number of Fintechs by Vertical in Türkiye

  • In Türkiye, fintech initiatives that have received investments have surpassed their highest levels recorded in 2022 regarding the number of deals and the investment amount. By the first quarter of 2024, the investment amount has reached its highest value. According to publicly disclosed data, by the end of 2024, investments in Türkiye’s fintech sector have increased by 164 million US dollars compared to the end of 2023, reaching 194 million US dollars.

C) REGULATIONS REGARDING THE FINTECH SECTOR

Among the year's notable regulations, a law concerning crypto assets has been introduced. With the publication in the Official Gazette on 2 July 2024 of the Law on Amendments to the Capital Markets Law numbered 6362, regulations regarding crypto assets have come into effect. Under the regulation, crypto asset service provider institutions and crowdfunding platforms have also been designated as member institutions of the Turkish Capital Markets Association.

The developments in 2024 are as follows:

  • The enactment of the Law on Crypto Assets
  • The launch of the "FAST Secure Payment Transaction Layer Service”
  • Enabling payment requests through the "FAST Payment Request Layer Service”

D) DIGITAL TURKISH LIRA

  • The Digital Turkish Lira is defined as the digital form of the current Turkish lira. Issued by the Central Bank of the Republic of Türkiye (TCMB), this digital currency aims to enable users to make payments faster and more securely by transferring the functions provided by physical currency into a digital environment.
  • When “Central Bank Digital Currency” is mentioned, crypto assets might come to mind; however, digital currency is not a crypto asset.
  • The Digital Turkish lira aims to increase financial inclusion, provide seamless payment opportunities, and develop a payment system compatible with the digital economy.
  • With offline payment capabilities, financial transactions will continue seamlessly even during natural disasters, and programmable payment systems will be developed by integrating smart contracts.
  • In 2025, as part of the second phase of the Digital Turkish Lira project, broader pilot tests will be conducted, and new participants will join the collaboration platform.

You can access the Report here.

Kind regards,

Zumbul Attorneys-at-Law

info@zumbul.av.tr