CONTEMPORARY ANALYSIS ON FINANCIAL AND TECHNOLOGICAL ASPECTS OF MOBILE PAYMENT SYSTEMS IN TURKEY

Abstract

Today's business world moves incredibly fast as the technology’s role on the processes of production, trade, and consumption is getting more dominant. The emerging technologies like mobile payment technology offer businesses an amazing support to operate their cash flow process more efficient and secure than traditional ways. On the consumer side, mobile payment applications make cashless transactions possible. In this study, the mobile payment systems in Turkey will be investigated and several correlation statistics between the mobile payment transaction numbers and the five major factors, financial and technological ones, are presented. Our analysis shown that contactless POS machine numbers, domestic credit cards penetration, 3G/4G adaptation ratio, mobile broadband internet usage rate and even smartphone sales rates are the factors for mobile payment increase in Turkey. Mobile payment solutions provided by global tech players are not available in Turkey, due to the fact that regulations and law related to these services lag behind. Absence of mobile payment technologies from global tech giants can be considered as a disadvantage for the Turkish markets but the joint efforts of established banks, new entrants and incumbent technology vendors supports a thriving ecosystem of mobile payments in our country.