Market Overview

The Turkey digital banking market valued at USD 101.52 Million in 2025 and is forecast to grow to USD 267.3 Million by 2034, at a CAGR of 11.36% during 2026-2034. Accelerated digital transformation in financial institutions, rising smartphone penetration, enhanced internet connectivity, and demand for contactless transactions are key growth catalysts. The emergence of digital-only banks, fintech investments, and supportive regulatory frameworks further enhance market momentum. 

Study Assumption Years

• Base Year: 2025
• Historical Period: 2020-2025
• Forecast Period: 2026-2034

Turkey Digital Banking Market Key Takeaways

• The Turkey digital banking market size was valued at USD 101.52 Million in 2025.
• The market is expected to grow at a CAGR of 11.36% during 2026-2034.
• Transactional services dominate with a 65% market share in 2025.
• On-premises deployment leads with a 58% market share in 2025.
• Internet banking holds the largest technology share at 42% in 2025.
• The banking industry accounts for the highest revenue share at 30% in 2025.

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Market Growth Factors

Turkey's digital banking market is driven by surging smartphone penetration and expanding internet infrastructure. As of early 2025, the country had 80.7 million active cellular mobile connections, creating a broad addressable market for mobile financial services. Government investments in broadband, including fiber rollouts, are enhancing speeds and extending connectivity to rural areas, reducing the digital divide and enabling access to digital banking for underserved populations.

Progressive regulatory frameworks actively support digital banking innovation. The Central Bank of Turkey’s Digital Turkish Lira Project, launched in 2025 to explore tokenization and programmable payments, alongside the 2025 Presidential Annual Program establishing Istanbul Finance and Technology Base, has fostered a conducive environment. These measures ease barriers and encourage both domestic and foreign investments in the digital banking ecosystem.

Robust fintech investment and growing e-commerce integration further propel market growth. In 2025, Turkey’s fintech sector attracted USD 201.3 million funding and hosts 901 fintech companies, with over 731 active in payments, blockchain, and digital lending. Notably, the acquisition of Paynet by iyzico for USD 87 million enhanced B2B/B2B2C payment capabilities. Partnerships between fintech and e-commerce firms drive seamless payment experiences, facilitating broader digital banking adoption.

Market Segmentation

Services

• Transactional: Constitutes 65% share in 2025, comprising fund transfers, cash deposits and withdrawals, auto-debit/auto-credit services, and loans. It forms the core of Turkey’s digital financial ecosystem with growing demand for instant payments and expanded ATM networks.
• Non-Transactional: Includes information security, risk management, financial planning, and stock advisory, supporting digital banking infrastructure and customer advisory services.

Deployment Type

• On-Premises: Holds 58% share in 2025, favored by banks for data sovereignty, regulatory compliance, and security. Core systems remain within bank data centers to meet regulatory mandates by the Banking Regulation and Supervision Agency (BRSA).
• Cloud: Adoption exists but less dominant compared to on-premises solutions.

Technology

• Internet Banking: Largest segment with 42% share in 2025, offering comprehensive account management and investment services through web platforms. It benefits from established infrastructure and consumer familiarity.
• Digital Payments: Facilitates contactless transactions, digital wallets, and embedded finance solutions enhancing customer convenience.
• Mobile Banking: Growing rapidly, driven by strong smartphone usage and mobile-first consumer behavior.

Industries

• Banking: Represents 30% market share in 2025. Traditional banks aggressively expand digital capabilities to meet changing consumer demands, with sophisticated apps and enhanced security.
• Other industries include media and entertainment, manufacturing, retail, and healthcare which also adopt digital banking solutions.

Regional Insights

The Marmara region is the dominant digital banking hub in Turkey, centered around Istanbul, the economic and financial capital. It benefits from superior digital infrastructure, high internet penetration, a concentration of fintech startups, established banks, and technology companies. This concentration drives the region’s leadership in digital banking innovation and market share.

Recent Developments & News

In January 2025, Kaspi.kz acquired a 65.41% stake in Hepsiburada for USD 1.127 billion, integrating payments and buy-now-pay-later features into one of Turkey's largest e-commerce platforms. This major foreign investment reinforces payment innovation and expands the fintech ecosystem in Turkey. Additionally, in May 2024, iyzico acquired Paynet for USD 87 million, enhancing its B2B and B2B2C payment capabilities serving over 130,000 merchants nationwide.

Key Players

• Garanti BBVA Mobil
• iyzico
• Paynet
• Kaspi.kz
• Hepsiburada

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