Payment Institution and E-Money Platforms: 2025 Guide

Digital payment systems and e-money institutions are one of the fastest-growing areas in the fintech sector. In this guide, we will examine in detail the process of setting up payment institution and e-money platforms.

1. Payment Institution vs E-Money Institution

Payment Institution

• Definition: Institutions providing payment services
• Services: Money transfer, payment acceptance, POS services
• Capital: Minimum 5 million TL
• License: TCMB (Central Bank of the Republic of Turkey)

E-Money Institution

• Definition: Institutions issuing electronic money
• Services: E-wallet, prepaid card, online payment
• Capital: Minimum 5 million TL
• License: TCMB

2. TCMB License Process

Application Requirements

Capital Requirements

• Minimum 5 million TL paid-in capital
• Entire capital must be paid in cash
• No foreign partnership ratio limitation

Organizational Structure

Board of Directors (min. 3 members)
    ├── General Manager
    ├── Finance Director
    ├── Technology Director
    ├── Compliance and Risk Management Director
    └── Customer Services Director

Required Documents

✅ Company articles of association
✅ Trade registry gazette
✅ Capital commitment document
✅ Business plan (5 years)
✅ Risk management policies
✅ AML/CFT procedures
✅ Information security policies
✅ Disaster recovery plan

Application Process

1. Pre-Application: Request for preliminary meeting with TCMB (1-2 months)
2. Official Application: Application with all documents (3-6 months)
3. Review: Detailed review by TCMB (6-12 months)
4. License Grant: License upon approval (total 10-20 months)

3. Technical Infrastructure

Core Banking System

# Simplified Core Banking Architecture
class CoreBankingSystem:
    def __init__(self):
        self.accounts = {}
        self.transactions = []
    
    def create_account(self, user_id, account_type):
        """Create new account"""
        account = {
            'id': generate_account_id(),
            'user_id': user_id,
            'type': account_type,
            'balance': 0,
            'currency': 'TRY',
            'status': 'active',
            'created_at': datetime.now()
        }
        self.accounts[account['id']] = account
        return account
    
    def transfer(self, from_account, to_account, amount):
        """Money transfer"""
        # Balance check
        if self.accounts[from_account]['balance'] < amount:
            raise InsufficientFundsError()
        
        # Execute transaction
        self.accounts[from_account]['balance'] -= amount
        self.accounts[to_account]['balance'] += amount
        
        # Transaction record
        transaction = {
            'id': generate_transaction_id(),
            'from': from_account,
            'to': to_account,
            'amount': amount,
            'timestamp': datetime.now(),
            'status': 'completed'
        }
        self.transactions.append(transaction)
        
        # Notification to TCMB
        self.report_to_tcmb(transaction)
        
        return transaction

Required Integrations

1. BKM (Interbank Card Center)

• POS integration
• Virtual POS
• 3D Secure

2. FAST (Funds Transfer System)

// FAST API Integration
const fastTransfer = async (data) => {
    const payload = {
        senderIBAN: data.senderIBAN,
        receiverIBAN: data.receiverIBAN,
        amount: data.amount,
        description: data.description,
        timestamp: new Date().toISOString()
    };
    
    // Request to TCMB FAST system
    const response = await axios.post(
        'https://fast.tcmb.gov.tr/api/transfer',
        payload,
        {
            headers: {
                'Authorization': `Bearer ${FAST_API_KEY}`,
                'Content-Type': 'application/json'
            }
        }
    );
    
    return response.data;
};

3. MASAK (Financial Crimes Investigation Board)

• Suspicious transaction reporting
• Automatic risk scoring
• AML/CFT compliance

4. Security and Compliance

PCI DSS (Payment Card Industry Data Security Standard)

• Level 1 certification required
• Annual audit
• Secure storage of card data

ISO 27001

• Information security management system
• Risk assessment
• Continuous improvement

GDPR (General Data Protection Regulation)

• Privacy notice
• Explicit consent
• Data inventory
• VERBIS registration

5. Product Features

Digital Wallet (E-Wallet)

✅ Instant money transfer
✅ Payment via QR code
✅ Bill payment
✅ Mobile top-up
✅ Virtual card
✅ Physical prepaid card

Merchant Portal

✅ Payment link creation
✅ Virtual POS
✅ Physical POS
✅ Bulk payment
✅ Reporting
✅ API integration

Admin Panel

✅ User management
✅ Transaction tracking
✅ Risk management
✅ MASAK notifications
✅ Financial reports
✅ Compliance checks

6. Revenue Models

Transaction Fees

• Money Transfer: 0.5% - 2%

• POS Transactions: 1.5% - 3%

• Foreign Currency Transactions: 2% - 4%

Subscription Models

• Corporate: Custom pricing

7. Cost Analysis

Initial Costs

|------|----------| | Capital (TCMB Requirement) | 5,000,000 | | Software Development | 2,000,000 - 5,000,000 | | License & Consulting | 500,000 - 1,000,000 | | Server & Infrastructure | 200,000 - 500,000 | | PCI DSS Certification | 100,000 - 300,000 | | Office & Equipment | 300,000 - 1,000,000 | | TOTAL | 8,100,000 - 12,800,000 |

Monthly Operating Costs

8. Successful Examples

Papara

• Founded in 2016
• 15+ million users
• Annual transaction volume: 100+ billion TL

İninal

• Founded in 2013
• 10+ million users
• Prepaid card pioneer
• 50,000+ partner merchants

Tosla

• Founded in 2019
• Public transportation payment
• 5+ million users
• Active in Istanbul, Ankara, İzmir

9. Common Challenges

❌ High Initial Cost: Minimum 8-10 million TL
❌ Long License Process: 10-20 months
❌ Complex Regulations: TCMB, MASAK, GDPR
❌ Strong Competition: Banks and established fintechs
❌ Technical Complexity: Core banking, security, integrations

10. Cesa Software Solutions

As Cesa Software, we offer turnkey payment institution and e-money platform solutions:

✅ Core Banking System
✅ Digital wallet (iOS & Android)
✅ Merchant portal
✅ Admin panel
✅ BKM/FAST integration
✅ MASAK notification system
✅ PCI DSS compliant infrastructure
✅ TCMB license consulting
✅ 24/7 technical support

Contact

📞 Phone: +90 850 225 53 34
📧 Email: iletisim@cesayazilim.com
🌐 Web: https://cesayazilim.com

Conclusion

Setting up a payment institution or e-money institution is a process that offers great opportunities in the fintech sector but requires significant capital and technical knowledge. With the right team, sufficient capital, and strategic planning, you can establish a successful platform.

Important: Before applying for a license, be sure to have a preliminary meeting with TCMB and get professional consulting.

Tags: #PaymentInstitution #EMoney #Fintech #TCMB #DigitalBanking #PaymentSystems