Transition to a cashless society
The coronavirus (COVID-19) pandemic notably altered the payment preferences and options for both consumers and sellers across many countries. Similarly, in Turkey, cash payments have gradually lost popularity among consumers, as card payments reached a higher market share than cash payments in stores as of 2020. In 2022, card payments accounted for more than half of the total point of sale (POS) payments in the country. Additionally, the results of a recent survey revealed how much Turkish people favored card payments. In 2022, just 14 percent of the public preferred to pay only in cash while shopping.The most popular payment methods in Turkey
As the digital transformation of the financial sector has gained acceleration over the past years, digital payment methods have overtaken cash payments. Card payments have proven to be the country's most popular digital payment type, both in physical stores and e-commerce. Correspondingly, the penetration rate of credit cards in Turkey increased constantly, reaching nearly 38 percent as of 2022. The transaction value of card payments simultaneously went up and showed significant growth in 2022, amounting to over one trillion Turkish lira.Mobile payments were also widely adopted in Turkey, considering the positive development in the number of payments made via mobile banking. As of the end of the last quarter of 2022, the total volume of mobile banking payments totaled 357 million. In the same quarter, Turkish people mostly used mobile banking to make loan payments, which added up to 129 billion Turkish lira. In light of these developments, the upward trend of the digitalization of money in Turkey will likely not lose momentum in the upcoming years.