Two months ago, the Naspers affiliate PayU started its services in Turkey after many months of development and preparation. We met with Y. Emre Güzer, the Country Director at PayU Turkey, to evaluate their entry into the Turkish market and to understand how they view the current systems in Turkey.
How do you assess the current online payment systems in Turkey?
The payment systems in Turkey combine security with ease of use, and simultaneously empowers and gets empowered by the e-commerce market. When we examine the payments sector, we detect several players who target certain business models through various technologies. It is certain that the competition will intensify along with the rising volume of trade.
[quote style=”1″]We identify two problems underlying the use of online payment systems in Turkey: First, businesses cannot just get a virtual POS and start e-trade; and second, the chargeback problem, which is the bane of every e-business, large or small.[/quote]
We keep reading about the “growth” of this “exploding” market. Is everything really that brilliant? What do you think is the biggest problem the sector is facing?
We had the chance to meet with hundreds of businesses. Based on the feedback, we identify two problems underlying the use of online payment systems in Turkey: First, businesses cannot just get a virtual POS and start e-trade; and second, the chargeback problem, which is the bane of every e-business, large or small.
How do you propose to solve these problems?
PayU is an affliate of Naspers and currently operates in 9 countries. We shaped our organization, products, and services to resolve the issues that are peculiar to this market. Beyond virtual POS solutions that enable our clients to own POS from 6 banks practically overnight, we provide advanced fraud prevention filters, a watch team of fraud experts working around the clock, and many more services that would make us a trusted partner in e-commerce. Additionally, we plan to contribute to the trade volume of our clients through the campaigns we launch with the banks, and increase consumer awareness through our communication efforts. As PayU, we wish to improve the Turkish e-trade center with services we will reveal within the next few months.
[quote style=”1″]Beyond virtual POS solutions that enable our clients to own POS from 6 banks practically overnight, we provide advanced fraud prevention filters, a watch team of fraud experts working around the clock, and many more services that would make us a trusted partner in e-commerce.[/quote]
What do foreign investors think of the Turkish market?
The global market has noticed the rapid growth and the potential of the Turkish online payment systems. The influx of interest and the current competition in the market is a testament to the fact. BKM reported that there are 53 million credit cards and 87 million debit cards. These are impressive figures. We have an advanced infrastructure that utilizes new technologies in payment systems. This infrastructure, the number of cards in circulation, and the size of the young population in Turkey make for an ideal market. On the other hand, compared to Europe we are very ambitious in implementing new business models. A proof of just how advanced we are as a country in payment systems is the appointment of Garanti Payment Systems co-chairman Mehmet Sezgin as the head of BBVA’s Global Payment Systems. I do not doubt that BBVA will thoroughly benefit from this arrangement. I hope to hear similar stories in the future.
Which banks do you work with?
Through partnerships with the leading banks and licensing firms in Turkey, we are offering innovative services. I can count VISA, Mastercard, Akbank, İş Bankası, Yapı Kredi, Ziraat Bankası, Finansbank, Denizbank, Garanti, and Bank Asya among our business partners. We want to add more to the list.
How many people among how many businesses employ PayU?
PayU operates in 9 countries globally and we work with more than 15,000 online businesses. As PayU Turkey, we concentrated on the needs of the Turkish market and after an intense period of software development, we fired up the system 2 months ago. Shortly after, we were actively working with more than 60 businesses. We also signed agreements with over 200 businesses. We provide a quick introduction to the world of e-commerce to interested clients. We wish to reach every single e-commerce entity in Turkey, from air transportation to private shopping clubs, simply everyone from tourism to marketplaces. In Turkey, we operate in every category that VISA and MasterCard permits. Markafoni, Zizigo, Misspera, and Ucuzu.com are amongst the businesses we actively work and negotiate with.
What makes you different from other payment systems?
Thanks to our deals with VISA and Mastercard, businesses can own virtual POS terminals from 6 banks with a single contract. We offer over 100 fraud prevention filters, payment pages with PCI DSS and SSL certificate, around the clock expert team dealing with fraud cases, payment pages that do not require registration with PayU while minimizing chargeback, uninterrupted shopping experience.
Additionally, our fraud team is accessible by any online business, not only for PayU POS owners.
What are your goals for 2013?
We wish to propel the Turkish e-commerce forward through the benefit of our services. We will reach everyone who is, or willing to be, involved in e-commerce. We aim for 1,000 member businesses by H1 2013.