PayPal to shut down Turkish ops after failed licence applications
PayPal has announced that it will be shutting down its Turkish operations after failing to gain a new licence in the country. Effective 6 June it will be closing its doors in Turkey, and its customers and clients will no longer be able to send or receive money via the system. Users will, however, be able to withdraw any funds they have left in their accounts.
New national regulations overseen by the Turkish government have required PayPal to localise its technology systems. It usually pursues a system of setting up local “chapters” within every country it operates. Doing so has been a struggle for the firm in Turkey, as it has had to continually file for the proper licence.
Some have speculated that the clampdown on PayPal comes ahead of Turkey releasing its own payments platform, Troy. The move has left a lot of businesses and customers in the lurch, especially with such a quick turnaround time. President Recep Tayyip Erdogan has not endeared himself to the technology sphere as he pursues a policy of tight control on information shared online. Websites like Twitter, Facebook and Reddit have all been blocked due to their “questionable content”.
Source: IBS intelligence
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