PayPal returns to Turkey with Cross Border system in March

DAILY SABAH
ISTANBUL
Published 23.08.2016 22:44

Canceled out by Turkey's Banking Regulation and Supervision Agency (BDDK) due to failing to transfer its system to Turkey, PayPal rolled its sleeves to return to the Turkish market. The company will initially come back via the Cross Border system and will later carry its servers to Turkey as well.

International online payment platform PayPal whose license was canceled by the BDDK after it failed to follow Turkish regulations, pay taxes and some transactions by the company through Turkish servers, is getting ready to come back to Turkey through the cross border system in March 2017. Holding a meeting with the BDDK last week, the company is planning to carry its servers to Turkey by late 2017. The Cross Border system allows people living abroad to do shopping from Turkey. However, this system does not allow a person living in Turkey to do shopping from abroad. Having a 12 percent market share in Turkish e-commerce sector and a $800 million worth trading volume, the company's trading volume is estimated to drop to $400 million with the new system. With its 179 million active subscribers worldwide, PayPal Global reportedly has a $18 billion trading volume.

PayPal's efforts to create a negative image of Turkey during its exiting process had been invalidated by BDDK President Mehmet Ali Akben who said that PayPal's application for a license was rejected since the company did not follow regulations. The law indicates that the systems have to be kept within the country with these kinds of operations. PayPal had not made any efforts to follow the regulations.

Established in 1998 under the name Confinity, PayPal Holdings is a U.S.-based company that operates a worldwide online payment system. Online money transfers, which have been increasingly popular worldwide, serve as electronic alternatives to traditional paper methods. PayPal is currently one of the world's largest Internet payment companies. The company basically performs payment processing for online vendors, auction sites and other commercial users, for which it charges a fee.

Established in 1998, PayPal had their Initial Public Offering (IPO) in 2002, and became a wholly owned subsidiary of eBay, a multinational e-commerce company, later that year. In 2014, PayPal moved $228 billion in 26 currencies across more than 190 nations, generating a total revenue of $7.9 billion, corresponding to 44 percent of eBay's total profits. The same year, eBay announced plans to spin-off PayPal into an independent company by mid-2015, and this was completed on July 18, 2015.

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