A game-changing development is unfolding in the world of Turkish fintech, and it's poised to have a significant impact on financial transactions. The Central Bank of Türkiye ("Central Bank") has officialy launched the FAST Request-to-Pay Overlay Service, allowing payees to request instant payment from payers. The said service has been introduced under Türkiye's instant payment sytem called FAST (Instant and Continuous Transfer of Funds). Initially designed for person-to-person transactions, the service streamlines money transfers between individuals, offering an efficient communication and approval process for payees.
The Central Bank has stated in it's press release that the unique aspect of the Request-to-Pay Overlay Service is its adaptability, making it compatible with a wide range of business models. As it progresses, the service is expected to set to revolutionize the payments landscape in Türkiye, with potential applications in e-commerce payments, e-order payments, and corporate invoice payments in the coming phases.
Meanwhile, the FAST system, enabling 24/7 instant and secure fund transfers and allow licensed fintechs to access payment systems, has been steadily gaining momentum in Türkiye. In 2023, it welcomed 10 payment and electronic money institutions, bringing the total number of participants to 36. This system has emerged as a credible alternative to traditional cash and card payments, witnessing a significant increase in transaction volumes. In January 2024 alone, it averaged an impressive 11 million transactions per day.
This advancement promises to simplify daily financial management for users of Turkish users, making it a versatile tool for modern lifestyles."
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