New Data Regs Chase PayPal from Turkey
June 2, 2016
While it was just identified as one of the fastest growing B2C e-commerce markets in Europe, new regulations introduced by the government of Turkey have chased one of the biggest online payment players in the world out of the market completely. PayPal announced to Turkish customers on Tuesday that it is ceasing operations in the country.
June 6 will be the last time PayPal account holders in Turkey will be able to send or receive funds using PayPal. The company was denied a license to operate in Turkey because of new rules requiring data centers serving its citizens to be located in Turkey. PayPal’s IT infrastructure is located in several global hubs.
“We respect Turkey’s desire to have information technology infrastructure deployed within its borders, however, PayPal utilizes a global payments platform that operates across more than 200 markets, rather than maintaining local payments platforms with dedicated technology infrastructure in any single country,” PayPal said in an emailed statement.