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including the transfer of funds to and from a payment account with the
user’s payment service provider, direct debits, including one-off direct
debits, payment transactions through a payment card or a similar
device, credit transfers, including standing orders, (iii) issuing or
acquiring payment instruments, (iv) money remittances, (v) execution
of payment transactions, where the consent of the payer to execute a
payment transaction is given by means of any telecommunication, dig-
ital, or IT device, and the payment is made to the telecommunication,
IT system, or network operator, acting only as an intermediary between
the payment service user and the supplier of the goods and services,
and (vi) corresponding services that enable bill payments, are consid-
ered as payment services.
As set forth under the Law on the Payment Services, institutions
that may provide payment services are limited to those institutions list-
ed under Art. 13 of the Law. Accordingly, institutions other than the
banks, electronic money institutions, and payment institutions may not
provide payment services.
Conditions to be fulfilled by the Institutions
Institutions that seek to provide payment services must satisfy cer-
tain conditions. These conditions are stipulated under Art. 14 of the
Law on Payment Services. Accordingly, the payment institution is
required to (i) be established as a joint stock company, (ii) meet the
bank founders’ eligibility criteria as set forth in Banking Law No. 5411
for shareholders who hold ten percent or more shares in that payment
institution’s capital, and which have control over the said payment
institution, (iii) have shares issued against cash, and which are fully
registered in its name, (iv) have a paid-up capital that is comprised of
cash and free from all kinds of fictitious transactions, and which is not
less than one million Turkish Liras for payment institutions that pro-
vide corresponding services, which provide bill payments, and not less
than two million Turkish Liras for other payment institutions, (v) have
sound and prudent management, adequate personnel, and the technical
equipment to perform payment services transactions within the scope
of the Law on Payment Services, and to establish necessary units for
complaints and objections, (vi) take necessary precautions for the con-
tinuity of the activities to be conducted within the scope of Law on
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