Turkey: online shopping via cards in 2023 exceeds €150 billion

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2004

Online card shopping, which achieved an annual growth rate of more than 50 percent in Turkey in the last 5 years, is continuing to develop. Interbank Card Center of Turkey (BKM) is playing a significant role with BKM Express, the payment platform that BKM prepared for online shopping.

BKM Express is not only increasing the speed of online card payments but also offering an easy, fast and secure way for payment. The reliability and security of BKM Express comes from the prevention of sharing card details with merchants and approval of transactions with a verification code submitted to BKM Express member’s mobile phone number registered at his/her bank.

While talking in the press meeting of BKM, in which the data of card payments, made through Internet, were announced and the contributions of BKM Express to e-commerce sector were discussed, Dr. Soner Canko, CEO of Interbank Card Center of Turkey (BKM), highlighted that the habits in payment systems are also changing as the lifestyle changes. Canko said, ‘Online shopping is growing fast in Turkey. It is estimated that card payments will reach to €15 billion this year in e-commerce. And it is aimed to exceed €150 billion in 2023. We, as BKM, are also making a contribution for online card shopping with BKM Express, which forms one of the main building blocks of our ‘Cashless Payments in 2023’ objective.”

During the meeting, in which the role of card payments in e-commerce was discussed, BKM shared its targets for 2023 while explaining the data of online card payments in 2012. According to these data it is prescribed that the number of transactions of card payments will be 157 million and total amount of payment made with cards will be €15 billion in 2012 for e-commerce industry, which is still continuing to grow fast in Turkey. It is also estimated that the number of transactions will reach to 600 million and volume will be €150 billion in 2023 in parallel with BKM’s objective of “Cashless Payments in 2023”.

BKM’s data shows that €2 of each €45 of shopping made with cards were made through e-commerce in 2008 and this amount has increased to €4 in 2012. It is also estimated that it will reach to 8 Euro in 2023. Another figure pointed out in this data was related with the amount per transaction, which increased from €62 in 2008 to €84 in 2012.

According to the data, announced by BKM, “airline expenditures” is leading by far among the industries, by being the industry with the highest utilization ratio of Internet for shopping purposes. It is salient that 90% of airline expenditures is performed online. It is also seen that 44% of payments made to travel agencies has been made through online card shopping for the period between the beginning of 2012 and end of October. These industries are followed by insurance with 36%, service sector with 30%, clubs and associations with 23%, direct marketing with 15% and electronics and computer with 14%.

Dr. Soner Canko, CEO of BKM, who said that BKM Express application will also be available for mobile platforms in early 2013, added, ‘It will be possible to make easy, fast and secure payments on e-commerce sites from anywhere and at any time by using mobile phones. It will be possible to transfer money through BKM Express application in mobile devices. BKM Express will be available in all smart phones.’