The Central Bank of the Republic of Türkiye (CBRT) has revoked the operating licence of Papel Elektronik Para ve Ödeme Hizmetleri AŞ as an electronic money institution, citing the company's failure to meet licensing requirements and concerns that its continued operations could threaten the security of payment services.

According to a CBRT decision published in the Official Gazette, the licence granted to Papel on 27 October 2022 under Law No. 6493 on Payment and Securities Settlement Systems, Payment Services and Electronic Money Institutions has been revoked. The company's authorisation had subsequently been expanded in 2023 to cover additional payment services.

Decision based on Law No. 6493

The central bank said the decision was taken pursuant to Articles 16(1)(ç), 16(1)(e), 19 and 21(8) of Law No. 6493.

Under Article 16(1)(ç), the CBRT may revoke an institution's licence if it no longer fulfils the conditions required to obtain and maintain authorisation. Article 16(1)(e) provides for licence revocation if the institution's continued operations are deemed to pose a threat to the security of payment services.

Article 19 stipulates that the legal provisions governing the revocation of licences for payment institutions also apply to electronic money institutions.

Following the decision, Papel's authorisation has been removed from the CBRT's register of licensed electronic money institutions, meaning the company is no longer permitted to operate under the electronic money licence previously issued by the central bank.

The CBRT did not disclose further details regarding the supervisory findings behind the decision. The move comes as the central bank continues to strengthen oversight of Türkiye's payment and electronic money sector, where licensed institutions are required to comply with strict prudential, operational and security standards aimed at safeguarding consumers and maintaining confidence in the country's payment infrastructure.(ILKHA)