E-money institutions are entities authorized to issue electronic money for the purpose of providing payment services. They operate under rules and regulations set by financial regulators across countries. Digital wallets are the transformative tools offered by e-money institutions, enabling users to make payments, transfer money, and conduct other financial transactions with ease.
In Turkey, the "Law on Payment and Securities Settlement Systems, Payment Services, and Electronic Money Institutions" (numbered 6493), which entered into force in 2013, introduced regulations in the field of payment systems and electronic money institutions and defined the legal status of electronic money for the first time. The purpose of the law is to examine the efficiency of electronic payment service providers in the financial system and to increase their reliability. Additionally, the law aims to harmonize the sector and ensure financial stability by setting standards for electronic payment institutions. In light of these developments, the terms "payment service," "payment institution," and "electronic money institution" were defined for the first time in Turkish legislation. Thanks to these definitions, e-money regulations have been more clearly delineated, and a system for institutions operating in this field has been established. In 2015, the authority to regulate and supervise payment services was transferred from the Banking Regulation and Supervision Agency to the Central Bank of the Republic of Turkey, and subsequently, in 2019, the powers of payment service providers were expanded, and they were also authorized to engage in open banking activities.
Law No. 6493 increased the amount of capital required for payment service providers in 2021, and the steps to obtain a payment service license became more difficult. At the same time, open banking standards were set for organizations, and the use of effective authentication systems became mandatory. Beyond these changes, institutions were also required to participate in the workplace registration system established by the BKM for the supervision of their usage activities. As of 2023, it is seen that 48 electronic money and 27 payment institutions, which are already licensed in Turkey, are officially registered.
E-money companies, initially focused on prepaid cards as their primary point of contact with users, have shifted their interactions towards digital wallets due to the much more comprehensive features they offer. As a result, digital wallets have become integral to the roadmap of e-money institutions.
Today, e-money institutions meet the daily financial needs of their users through digital wallets, which enable functions such as money transfers, shopping payments, bill payments, and transactions with various institutions. In addition to providing these essential financial services through a user-friendly interface, they enhance the financial service experience with loyalty programs such as cashback, gamification approaches, and personal spend management features.
When acquiring a digital wallet solution for an e-money institution, consider the following:
Customizable Interface and Functions: When creating your own financial ecosystem, you may need to go beyond standard solutions.
Secure and Scalable Infrastructure: Ensure the security required for a financial application while also ensuring performance to keep up with the speed of the digital world.
Integration with Different Fintech Products: Expand the financial services you offer to your users through new partnerships.
Fintech Advisory: The expertise in fintech guidance and continuous support. Broad knowledge and experience regarding the dynamic nature of the fintech market and rapidly changing regulatory environment.
As Finartz team, which has many years of experience in creating and scaling fintech products, we have created our payment technologies platform. With our digital wallet solution developed under this platform, we develop your digital wallet that includes the specific needs of your sector such as e-money company, bank, retail, mobility. With our 100% API-based digital wallet infrastructure that is compatible with current demands and regulations, we provide an infrastructure that will ensure that you are ready for new developments in the fintech field.
