The Turkish e-commerce market is primed for a shakeup after Turkish regulators rejected PayPal’s license applications, which will result in the ceasing of all activities with the payments specialist in Turkey starting next week, according to a PayPal statement.
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PayPal’s business is officially slated to go dark on June 6 next week, ceasing its activities across all of Turkey. Users will not be able to send and receive money via their PayPal accounts, however balances can be moved to Turkish bank accounts. The move looks to convulse the Turkish e-commerce space, namely as mobile payments and engines such as PayPal have gathered a large amount of usage in Turkey in past years.
The move came after PayPal’s payment license application was summarily denied by Turkish regulator, BDDK. More specifically, the license decision was made as a result of Turkey’s rules that recently came into effect, in which the country mandates that IT systems of a given company need to be based in Turkey.
Despite the suspension upcoming, PayPal has already expressed a desire to work towards obtaining the requisite permits needed to operate again in Turkey, however no timetable or logistics were given. In the meantime, customers will be forced to rely on traditional payments means or domestic e-commerce platforms.