Turkey - ECommerceTurkey - ECommerce
In Turkey, the majority of e-commerce transactions occur via internet banking. Local industry sources report that nearly 70% of all electronic commerce transactions are in online banking and financial services. The concept of online banking is popular given the high cost of maintaining bank branches throughout the country. Apart from increasing customer service, commercial banks have realized that lower transaction costs for online banking are attractive to consumers. However, some foreign mobile banking or e-commerce companies have found it difficult or impossible to operate in Turkey due to data localization rules, onerous tax regulations, and/or barriers to protect local industry.
The Turkish government also emphasizes the importance to e-government activities such as tax payments over the Internet, applications for visas and passports, SMS judicial information system and many other paperless application procedures. The gateway to all e-government services can be accessed at Turkey Website.
Turkey’s e-commerce market reached 24.7 billion TL in 2015 – 31% growth over the previous year. There is significant opportunity for development and new concepts. Other e-commerce business activity includes ticketing, travel, food delivery, entertainment, clothing, and consumer products. The Turkish Commercial Code, which came into effect in July 2012, requires, among other things, that businesses have a website meeting a set of minimum requirements. This may further spur various forms of electronic commerce.
The Turkish Parliament also approved Law No. 6563 in May 2015, on the Regulation of Electronic Commerce (Law) which aims at creating a more secure, transparent and accessible e-commerce environment. With this law a new liability to ensure security for customers’ personal and payment information came into force. The law covers electronic communications, liabilities of service providers, contracts concluded electronically, and the information provided to consumers, as well as unsolicited electronic messages. Foreign businesses have expressed serious reservations about the intent and application of the law, including that they must store all customer data inside Turkey, which some view as both commercially burdensome and problematic from a data privacy and security perspective.
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