Beginning June 6, PayPal will cease operations in Turkey because of the firm’s inability to get a new license from BDDK, a major Turkish financial regulator, according to TechCrunch.
PayPal couldn’t obtain the license because of a new Turkish policy that requires IT systems to be housed within the country — a policy that PayPal, which has data centers across the globe, does not follow, according to Tech Crunch.
The shutdown will reportedly impact “tens of thousands” of businesses and “hundreds of thousands” of customers, who will be able to withdraw funds from their PayPal account and transfer them to a Turkish bank account. PayPal hopes to eventually obtain permits to begin operating again, according to Finextra.
It’s worth noting that Turkey recently launched its own card payment system, called Troy, that will be used by all 29 major banks in the country as part of a push to move to a cashless society, encourage issuers to serve the unbanked market, and make processing cheaper.
The absence of major alternative payment products like PayPal that don't meet regulatory criteria could encourage citizens in the country to seek out more traditional ways of making payments.
If other countries tighten regulations related to IT requirements, global expansion and cross-border processing could become more challenging and costly for digital payment firms.
Read more: PayPal is shutting down in Turkey - Business Insider
PayPal couldn’t obtain the license because of a new Turkish policy that requires IT systems to be housed within the country — a policy that PayPal, which has data centers across the globe, does not follow, according to Tech Crunch.
The shutdown will reportedly impact “tens of thousands” of businesses and “hundreds of thousands” of customers, who will be able to withdraw funds from their PayPal account and transfer them to a Turkish bank account. PayPal hopes to eventually obtain permits to begin operating again, according to Finextra.
It’s worth noting that Turkey recently launched its own card payment system, called Troy, that will be used by all 29 major banks in the country as part of a push to move to a cashless society, encourage issuers to serve the unbanked market, and make processing cheaper.
The absence of major alternative payment products like PayPal that don't meet regulatory criteria could encourage citizens in the country to seek out more traditional ways of making payments.
If other countries tighten regulations related to IT requirements, global expansion and cross-border processing could become more challenging and costly for digital payment firms.
Read more: PayPal is shutting down in Turkey - Business Insider
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