According to Law No. 6493 “payment institution” refers to the legal entity authorized under this law to provide and perform payment services, and “Payment System” refers to a structure with common rules that provides infrastructure for clearing and reconciliation transactions for the realization of fund transfers arising from transfer requests between three or more participants.
Payment institutions authorized under the law are legal entities that provide payment services to their customers. These legal entities must be joint stock companies according to the Law, and the company and its partners must meet the conditions specified in the second paragraph of Article 14 of the Law. The payment services that the payment institution can offer are listed in the first paragraph of Article 12 of the Law. It is stated that an organization that has received a payment institution operating permit within the scope of Article 14 of the Law can only offer the payment services specified in the first paragraph of Article 12 of the Law and cannot engage in the issuance of electronic money.
“According to the law” Electronic Money Institution” means the legal entity authorized to issue electronic money within the scope of this law, and “Electronic Money” means money issued in return for funds accepted by the electronic money issuer, stored electronically, used to carry out payment transactions defined in this Law, and other than the electronic money issuer. It refers to the monetary value accepted as a means of payment by real and legal persons.
There are 5 main transaction processes in the sector.:
- Mobile payment
- Money transfer
- payment service provider
- Paying bills
- electronic money
Mobile payment: The product/service that the customer will purchase using a credit card, etc. It is reflected on the phone bill without any
Money transfer: It is a money transfer service through an agent.
Payment Service Provider: They are companies that generally provide electronic POS services (it can be virtual POS or it can be done through credit cards open to the internet) for credit card collection to SMEs.
Paying bills: Thanks to common representatives, the institution that generates the invoice ensures that payments are made.
Electronic Money: It allows individuals to open an electronic money account and transfer funds to be used in payment services.
