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Turkey local processing and card support

Market overview

Turkey is experiencing a rapid e-commerce growth, thanks to a series of various improvements across different fields. With half of the country's population having Internet access, the e-commerce scene benefits from over 35 million Internet users. This leads to online transactions made by over 10 million shoppers.

However, online orders in Turkey are still very focused on the domestic market, with only one in five customers having considered international shopping.

Key payment methods

Credit cards are the Turks' preferred payment method, amounting to roughly 90% of purchases. The remaining purchases are paid for with cash (5%)e-wallets (3%) and debit/prepaid cards (2%).

 

Source: Hakan Erdoğan. Online Payment Systems in Turkish E-Commerce: Merchant Experiences

 

In Europe, Turkey holds the second and third positions (after the UK) regarding the highest penetration rates for credit and debit card usage, with over 58 million credit cards and over 89 million debit cards.

Local processing

Since nearly 20% of Turkish cards do not support international transactions, processing cards locally brings the benefit of a higher conversion rate as well as the option to offer installments leading to an overall increase in market share.

Credit card installment providers

Six loyalty programs present in Turkey give shoppers the benefit of using installments to pay for their purchases: Bonus, World, CardFinans, BankAsya, Paraf and Maximum. The most popular of them, amounting to roughly 80% of the market, are Bonus and Maximum.

What Avangate offers

Avangate's local processing support in Turkey provides shoppers with the choice to pay for their purchases with local cards, such as:

o Bonus

o World

o CardFinans

o BankAsya

o Paraf

o Maximum

  • Shoppers can also use these cards to pay for their purchases in installments, offering them a greater payment flexibility. This leads to an increased share in the local market through access to the local cards that do not support international transactions.
  • Since approximately 35% of transactions are paid through installments, Avangate brings an estimated increase in conversion and authorization rates of at least 10%.
  • 3D Secure is mandatory for debit card transactions.
  • Recurring billing is only supported for transactions paid in full. Manual renewal is available for transactions paid with installments.

 

Card type

Supports installments

Max. installments

Supports full payment

Min. Installment value

Bonus

Yes

9

Yes

1TRY

World

Yes

9

Yes

1TRY

CardFinans

Yes

9

Yes

1TRY

BankAsya

Yes

9

Yes

1TRY

Paraf

Yes

9

Yes

1TRY

Maximum

Yes

9

Yes

1TRY

Axess

No

0

Yes

N/A

Advantage

No

0

Yes

N/A

Smiles

No

0

Yes

N/A

Besides payment processing, Avangate also covers support and legal issues:

  • Customer support
  • Risk and anti-fraud management
  • Invoicing compliance (snail mail invoices)

Tax and VAT compliance (18% VAT applicable for transactions originating from Turkey) according to Turkey's regulations.